The Application of The Camel Model to The Assessment of Bank Performance and Its Correlation with Bank Profitability: Evidence from Vietnam

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F70883521%3A28120%2F23%3A63567498" target="_blank" >RIV/70883521:28120/23:63567498 - isvavai.cz</a>

Result on the web

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DOI - Digital Object Identifier

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Result language

angličtina

Original language name

The Application of The Camel Model to The Assessment of Bank Performance and Its Correlation with Bank Profitability: Evidence from Vietnam

Original language description

This paper empirically examines the bank-specific determinants of bank profitability in the Vietnamese banking system for the period from 2011 to 2022. The study applies the CAMELS framework and employs panel regression to determine the effects of each CAMELS component on bank earnings per share (EPS). Particularly, by applying the fixed effect regression model, the study explores critical results such as: (i) the capital ratio (equity/total assets) has a negative coefficient with EPS as explained additional capital acquired by large capitalized banks is not efficiently converted into higher income earnings; (ii) asset quality represented by non-performing loans (NPL) ratio is found to have a negative impact on EPS since higher NPLs lead to higher provisioning expenses, then lower net profit; (iii) the management efficiency denoted by the cost to income ratio (CIR) negatively affects EPS since the increase in CIR means lower efficiency and lesser profit; (iv) it is quite evident that a statistically significant positive coefficient exists between Return on Assets (ROA) and EPS since earning quality is vital securing assets and capital for the banks’ competitive advantages; (v) market sensitivity signified by net interest margin (NIM) shows a positive correlation coefficient with EPS, implying that higher NIM significantly leads to higher EPS, vice versa.

Czech name

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Czech description

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Type

D - Article in proceedings

CEP classification

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OECD FORD branch

50202 - Applied Economics, Econometrics

Project

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Continuities

V - Vyzkumna aktivita podporovana z jinych verejnych zdroju

Publication year

2023

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection

Conference Proceedings The 6th International Conference on Finance, Accounting and Auditing

ISBN

978-604-3-30957-7

ISSN

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e-ISSN

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Number of pages

24

Pages from-to

1-24

Publisher name

NATIONAL ECONOMICS UNIVERSITY PUBLISHING HOUSE

Place of publication

Hanoi

Event location

Hanoj

Event date

Dec 20, 2023

Type of event by nationality

WRD - Celosvětová akce

UT code for WoS article

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