| dc.description.abstract | This research analyzes the impact of capital on the insolvency risk in Vietnamese commercial banks. The sample size is collected from 26 domestic commercial banks with 156 observations during the period from 2009 to 2014. Applying the panel data technique, this paper finds an evidence that there is significant positive effect of capital on the insolvency risk. This means a larger capital indicates that banks take more insolvency risk. Moreover, the findings show ROA and GDP have a positive association with the risk of insolvency while ROE, loan ratio and inflation rate are inversely related with the level of insolvency risk. However, we do not find that size, total deposits to total assets, total operating expenses to total assets, total financial expenses to total loans do not influence on the insolvency risk.
Keywords: commercial bank, capital, insolvency risk, panel data. | en_US |
