Analysis of Factors Affecting the Financial Capacity of Vietnam Commercial Banks After M&A by CAMEL Standards

Nguyen Thi Bich Vuong () and Nguyen Phi Dat
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Nguyen Thi Bich Vuong: Hanoi Technology Economics College
Nguyen Phi Dat: Banking Academy

A chapter in Contemporary Economic Issues in Asian Countries: Proceeding of CEIAC 2022, Volume 1, 2023, pp 111-126 from Springer

Abstract: Abstract After implementing the project on restructuring the credit institution system in period 1 (2011–2015) and period 2 (2016–2020), banking M&A activities in Vietnam as of 2020 have not been professional, small number, sometimes spontaneous, sometimes due to the pressure of mechanisms and regulations in legal documents, not yet derived from the economic interests of the bank and the economy, and thus lack of experience and information. Moreover, after restructuring, new commercial banks were formed, which is the result of M&A deals. But after a while, how these commercial banks develop and how effective they are, it is a difficult problem that bank administrators must continue to solve. Therefore, the question for commercial banks after M&A is how to improve financial capacity to maintain stability after M&A and the bank to still operate effectively. Therefore, the article used Probit binary regression model to analyze the factors affecting the financial capacity of commercial banks after M&A in Vietnam in the period 2012–2021 to see whether they meet CAMEL standards or not. This will be the basis for bank managers to come up with solutions to improve the financial capacity of commercial banks after M&A in Vietnam in the near future.

Keywords: Financial capacity; Probit binary regression model; CAMEL standard; Commercial bank after M&A (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-19-9669-6_7

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DOI: 10.1007/978-981-19-9669-6_7

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