Reality of Vietnam’s Commercial Bank Performance and Soundness

This paper employs CAMELS rating system to evaluate the performance and soundness of Vietnam’s commercial banks. Based on the analysis of data from financial statements of the banks in the years 2005/2008–2013, the research results show that the total assets and equity capital of Vietnam’s commercia...

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Những tác giả chính: Nguyen, Thi Canh, Nguyen, Thi Diem Hien
Định dạng: Bài viết
Ngôn ngữ:English
Được phát hành: University of Economics Ho Chi Minh City 2023
Truy cập trực tuyến:http://jabes.ueh.edu.vn/Home/SearchArticle?article_Id=609e755d-e6b4-4905-b6e9-ba4eaa3e21f4
https://scholar.dlu.edu.vn/thuvienso/handle/DLU123456789/115433
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spelling oai:scholar.dlu.edu.vn:DLU123456789-1154332023-03-08T03:56:07Z Reality of Vietnam’s Commercial Bank Performance and Soundness Nguyen, Thi Canh Nguyen, Thi Diem Hien This paper employs CAMELS rating system to evaluate the performance and soundness of Vietnam’s commercial banks. Based on the analysis of data from financial statements of the banks in the years 2005/2008–2013, the research results show that the total assets and equity capital of Vietnam’s commercial banks have increased, but their efficiency is not yet high and tends to gradually decrease. The expense-to-revenue ratio was higher than 80% while the return on assets (ROA) ratio remained around 1% and had a tendency to sharply fall to 0.77% and 0.56% in 2012 and 2013 respectively. The return on equity (ROE) ratio, in addition, fell steadily in 2012 (7.42%) and 2013 (5.84%). The findings also indicate that profitability of state-owned commercial banks is higher than that of private joint-stock ones. Additionally, risk degree was high because of a high bad debt (around 4%) and low liquidity (around 90% of loan-to-deposit ratio). In addition to its analysis, the research offers sevaral recommendations that aim at improving banking efficiency and mitigating risk as for Vietnam’s commercial banks. 2023-03-08T03:56:07Z 2023-03-08T03:56:07Z 2015 Article 2615-9112 http://jabes.ueh.edu.vn/Home/SearchArticle?article_Id=609e755d-e6b4-4905-b6e9-ba4eaa3e21f4 https://scholar.dlu.edu.vn/thuvienso/handle/DLU123456789/115433 10.24311/jabes/2015.22.2.07 en Journal of Asian Business and Economic Studies, Volume 22, Issue 02; p. 48-69 application/pdf University of Economics Ho Chi Minh City
institution Thư viện Trường Đại học Đà Lạt
collection Thư viện số
language English
description This paper employs CAMELS rating system to evaluate the performance and soundness of Vietnam’s commercial banks. Based on the analysis of data from financial statements of the banks in the years 2005/2008–2013, the research results show that the total assets and equity capital of Vietnam’s commercial banks have increased, but their efficiency is not yet high and tends to gradually decrease. The expense-to-revenue ratio was higher than 80% while the return on assets (ROA) ratio remained around 1% and had a tendency to sharply fall to 0.77% and 0.56% in 2012 and 2013 respectively. The return on equity (ROE) ratio, in addition, fell steadily in 2012 (7.42%) and 2013 (5.84%). The findings also indicate that profitability of state-owned commercial banks is higher than that of private joint-stock ones. Additionally, risk degree was high because of a high bad debt (around 4%) and low liquidity (around 90% of loan-to-deposit ratio). In addition to its analysis, the research offers sevaral recommendations that aim at improving banking efficiency and mitigating risk as for Vietnam’s commercial banks.
format Article
author Nguyen, Thi Canh
Nguyen, Thi Diem Hien
spellingShingle Nguyen, Thi Canh
Nguyen, Thi Diem Hien
Reality of Vietnam’s Commercial Bank Performance and Soundness
author_facet Nguyen, Thi Canh
Nguyen, Thi Diem Hien
author_sort Nguyen, Thi Canh
title Reality of Vietnam’s Commercial Bank Performance and Soundness
title_short Reality of Vietnam’s Commercial Bank Performance and Soundness
title_full Reality of Vietnam’s Commercial Bank Performance and Soundness
title_fullStr Reality of Vietnam’s Commercial Bank Performance and Soundness
title_full_unstemmed Reality of Vietnam’s Commercial Bank Performance and Soundness
title_sort reality of vietnam’s commercial bank performance and soundness
publisher University of Economics Ho Chi Minh City
publishDate 2023
url http://jabes.ueh.edu.vn/Home/SearchArticle?article_Id=609e755d-e6b4-4905-b6e9-ba4eaa3e21f4
https://scholar.dlu.edu.vn/thuvienso/handle/DLU123456789/115433
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