Studying the Impact of the Minimum Capital Adequacy Ratio on the Profitability of Vietnamese Commercial Banks

Abstract

     Using the Generalized Method of Moments (GMM) to estimate the impact of the minimum capital adequacy ratio on the profitability of 26 commercial banks in Vietnam based on financial reports from these banks for the period 2010-2022, the research results indicate that increasing the minimum capital adequacy ratio will have a positive impact on the profitability of commercial banks. Based on these findings, the study provides recommendations for implementing the minimum capital adequacy ratio in Vietnamese commercial banks to enhance profitability, ensure business efficiency, and encourage sustainable development of commercial banks