Exploring Influencing Factors on Capital Adequacy in Commercial Banks

Q1 Multidisciplinary Emerging Science Journal Pub Date : 2024-04-01 DOI:10.28991/esj-2024-08-02-010
Tu Ngoc Tran
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Abstract

This study estimates the effect of macroeconomic and control factors on the capital adequacy ratio of commercial banks in Vietnam. Using the feasible generalized least squares method (FGLS), the following factors are statistically significant in affecting the capital adequacy ratio: national governance quality, economic growth, COVID-19, bank size, liquidity, and leverage. This study also highlights the role of compliance in maintaining capital adequacy during a global crisis, such as the COVID-19 outbreak, because commercial banks need more capital to absorb shocks in the financial instability period caused by the pandemic. Besides, the author emphasizes that in developing countries, especially Vietnam, the government needs to ensure national governance quality, such as political stability and regulatory quality, to increase additional capital buffers to protect them from losses or bankruptcies. Furthermore, the author conducts robustness tests to enhance the reliability and impartiality of the research findings. Doi: 10.28991/ESJ-2024-08-02-010 Full Text: PDF
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商业银行资本充足率的影响因素探讨
本研究估计了宏观经济因素和控制因素对越南商业银行资本充足率的影响。利用可行的广义最小二乘法(FGLS),以下因素对资本充足率的影响具有统计学意义:国家治理质量、经济增长、COVID-19、银行规模、流动性和杠杆率。本研究还强调了在 COVID-19 爆发等全球性危机期间,合规在维持资本充足率方面的作用,因为商业银行需要更多资本来吸收大流行病导致的金融不稳定时期的冲击。此外,作者强调,在发展中国家,尤其是越南,政府需要确保国家治理质量,如政治稳定和监管质量,以增加额外的资本缓冲,保护银行免受损失或破产。此外,作者还进行了稳健性检验,以提高研究结果的可靠性和公正性。Doi: 10.28991/ESJ-2024-08-02-010 全文:PDF
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来源期刊
Emerging Science Journal
Emerging Science Journal Multidisciplinary-Multidisciplinary
CiteScore
5.40
自引率
0.00%
发文量
155
审稿时长
10 weeks
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