Factors Impacting the Bank Stability at Joint Stock Commercial Banks in Vietnam

Abstract

The main objective of this study is to determine the factors affecting the financial stability of Vietnam's Joint Stock Commercial Banks. Based on the data from 22 Vietnam Joint Stock Commercial Banks in 2011–2021, the study uses regression models to analyze the data. According to the study, the number of customer loans, the amount of equity, liquidity, and credit risk all contribute to the financial stability of banks. In addition, factors that weaken financial stability include bank size, operating costs, and inflation rates. Based on these findings, the author makes recommendations to help reduce financial risks and improve the bank stability of Vietnamese joint-stock commercial banks.