The impacts of bank profits on financial stability in Vietnam

Abstract

This study investigates the impacts of bank profitability on financial stability of commercial banks in Vietnam. The study uses quantitative research methods with data of 25 commercial banks from 2008 to 2018. The results show that, The profit factor, The variable capital mobilization ratio, The economic growth variable have positive influences on financial stability. In contrast, other factors such as Size, The loan ratio variable, The inflation variable have negative impacts on financial stability. In addition, The asset growth variable has no impact on financial stability of Vietnamese commercial banks. From the results of this study, the article proposes some policy implications to strengthen financial stability in Vietnam.