Impact of Capital on Profitability of Banks: Evidence from Vietnamese Commercial Banks

This study aims to investigate the impact of capital on bank profitability with evidence from Vietnamese commercial banks. With a sample of 30 Vietnamese commercial banks, the findings show the positive relationship between capital and bank profitability during the period of 2012-2018. Accordingly, the influence of capital is more pronounce in the case of small-sized banks, whereas it exerts insignificant influence on the profitability of large-sized banks. Moreover, a high degree of capital increased the profitability of private-owned banks, the impact of capital is positive and significant for the net interest margin of state-owned banks only.