| dc.description.abstract | The banking system is vital to the expansion of the country's economy. A nation's
financial stability is determined by the efficacy and productivity of its banking industry over time.
From 2017 to 2022, the results of managing credit risk were analyzed to see how they affected the
financial outcomes of 19 commercial banks in Vietnam. Using data collected through panel
approaches consisting of pooled ordinary least squares, fixed effects and random effects
estimators, and generalized least square regression, we investigated the connection between credit
risk handling (as measured by NPLR and CAR) and financial success (as measured by ROA and
ROE). To begin with, a strong correlation between financial results and adequate capitalization
has been established. Second, the data demonstrated that non-performing loans were inversely
related to the profitability of banks as measured by return on assets and return on equity. Third,
outcomes show that a bank's size was associated with better financial results. Next, the leverage
ratio was discovered to be negatively correlated with bank profitability. In the end, the growth
ratio did not influence banks' bottom lines in any significant way. Commercial banks in Vietnam
could benefit from better credit risk management practices, which would help bring the percentage
of non-performing loans lower. In addition, they need to keep a healthy level of capital on hand to
prevent the kind of capital loss that might result in a lack of liquidity or even insolvency due to
non-performing loans. | en_US |
