Abstract

AbstractThis article studies the impact of factors on the capital adequacy ratio (CAR) of commercial banks in Vietnam. The authors use the Bayesian regression method via Gibbs sampling. The data used in the study is secondary sources from the financial statements of 30 Vietnamese commercial banks and the General Statistics Office of Vietnam for the period 2012–2018. The research results show that bank loan, loan loss provision, liquid assets, profitability are the factors that negatively affect CAR. On the other hand, factors that have a positive impact on bank CAR are bank size, inflation, and GDP growth.KeywordsBayesianCapital adequacy ratioCommercial bank

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