Impact of Liquidity Transformation to Vietnamese Commercial Banks Adequacy Ratio

  • Nguyen Hong Yen https://hvnh.edu.vn/tapchi/vi/thang-6-21/nguyen-hong-yen-le-ngoc-minh-chau-tac-dong-cua-kha-nang-chuyen-doi-thanh-khoan-den-ti-le-an-toan-von-toi-thieu-cua-cac-ngan-hang-thuong-mai-viet-nam-509.html
  • Le Ngoc Minh Chau https://hvnh.edu.vn/tapchi/vi/thang-6-21/nguyen-hong-yen-le-ngoc-minh-chau-tac-dong-cua-kha-nang-chuyen-doi-thanh-khoan-den-ti-le-an-toan-von-toi-thieu-cua-cac-ngan-hang-thuong-mai-viet-nam-509.html

Abstract

The purpose of this research is to findout the impact of liquidity transformation on capital adequacy ratio (CAR) of Vietnamese commercial banks.
By using Generalized Least Square regression model for 16 Vietnamese banks in the period 2012-2020 with dependent variable ‘capital adequacy ratio CAR’, independent variable ‘lag liquidity transformation LTG t-1’ and some additional control variables (namely: the lag capital adequacy ratio CARt-1, return on equity ROE, credit risk CRSK, gross domestic product GDP, inflation rate INFL), this study finds that liquidity transformation (LTGt-1) has negative effect on capital adequacy ratio (CAR), while the variables lag capital adequacy ratio (CARt-1) and credit risk (CRSK) are positively related to CAR, while, ROE, GDP and INFL have insignificant effect on CAR.

điểm /   đánh giá
Published
2021-07-15
Issue
No. 229 (2021)
Section
Bài viết