Level of the impact on capital adequacy ratio when banks announce the adoption of Basel III - The difference-in-differences method’s approach

Tóm tắt

This study yields empirical results from 23 commercial banks divided into two groups: a group of 12 commercial banks exclusively applying Basel II and a group of 11 commercial banks that announced the implementation of the Basel III management framework. The analysis covers the period from 2020 to the second quarter of 2024, employing the difference-in-differences regression method. The findings indicate no significant difference in the impact on the capital adequacy ratio between commercial banks announcing Basel III implementation and those that continued applying Basel II. Based on these empirical results, the study identifies specific characteristics of the research sample and proposes appropriate measures within the context of current roadmap encouraging Basel III adoption among commercial banks in Vietnam.