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ABSTRACT
The purpose of the project is to find out the impact of bank capital on the
profitability of joint stock commercial banks with a sample of 31 Vietnamese joint
stock commercial banks. The results show a positive relationship between capital and
profitability. of banks in the period 2009 - 2023. The study uses three dependent
variables to measure bank profitability: after-tax profit on equity (ROE), after-tax
profit on total assets (ROA), and net interest income on total assets. assets (NIM).
The independent variables are equity ratio (CAP), net lending ratio (NLTA), liquidity
(LIQ), bank size (SIZE), deposit ratio (DEP), growth rate growth (GDP), inflation
rate (INF). The results show that CAP significantly impacts NIM and ROA, while
CAP does not affect ROE. Unlike the CAP variable, the SIZE variable, NLTA, INF
and GDP variables have an impact on all three dependent variables NIM, ROA, ROE.
On the contrary, the DEP variable has a negative impact on bank profits. Only the
LIQ variable does not show a statistically significant relationship between LIQ and
bank profits, because the estimated coefficient is not statistically significant.
Keywords: Impact of capital, profitability, Pooled OLS, FEM, REM
