Analysis Of Internal Factors Affecting Bank Probability: Evidence From Listed Banks On Vietnam Stock Market

This study using the multivariate linear regression model based on the ordinary least squares method (OLS) to estimate the internal factors affecting profitability of 9 listed banks on Vietnam Stock Market for the period from 2008 to 2016. A sample with 81 observations was used in study model, and Return on assets (ROA) is used to measure banks’ profitability in the study model. The results indicated that capital size and loan have a positive and significant effect on bank profitability, and asset size, deposits, liquidity risk and bad debts have a negative and significant impact on bank profitability. These findings suggest that banks can improve their profitability through increasing capital size and loan, remaining asset size, deposits, liquidity risk and bad debts reasonably. These findings allow authors to give some solutions to support Vietnam commercial banks increasing their profitability in integration era


Introduction
Commercial banks play an important role in linking capital sources and providing many different financial services in the economy. Therefore, this financial intermediary has impacts on economic growth of every nation. Besides, banks' problems can result in systemic crisis. Economies that have a profitable banking sector are better able to withstand negative shocks and contribute to the stability of the financial system [1]. Besides, Suffian [2] stated that banks in many nations are considered as dominant financial institutions, thus their performance will give effect to the general health of the economy. Therefore, it is necessary to understand factors influencing banks' profitability, especially internal factors, because they relate to banks themselves and organizations in the economy. The objective of this paper is to examine the internal factors that affect the profitability of 9 listed banks on Vietnam stock market. This study chooses 6 internal factors variables to measure banks' profitability. Besides, during the period of study from 2008 to 2016, Vietnam banking sector witnessed many challenges and difficulties internally and externally, especially financial crisis from 2008.
However, there have been little empirical studies being carried out in Vietnam in the long period of time from 2008 to 2016. The findings of this study could be of interest to policy makers, banks and every private and organizations in the economy. The paper includes 8 sections in which section 1 is introduction. The rest of the paper is organized as follows: Section 2 provides a background of literature, relating bank profitability and its internal determinants. Section 3 gives a glance of 9 listed banks on Vietnam stock market. Section 4 describes research methodology with data, variables, method and research model, while section 5 describes and analyses the empirical results. Conclusions and recommendations are offered in the final section.

Literature Review
In many previous studies, internal and external factors are used to measure their influence on profitability of banks. However, this study is concentrating on internal factors such as asset size, capital size, deposits, loan, liquidity and bad debt which affect profitability of 9 listed bank on Vietnam stock market directly. The following studies could be an important source in supporting the results of this paper. In empirical studies of Bourke [3] identified the determinants of bank profitability in which internal variables are related to bank management. Mamatzakis [4] also indicated that internal determinants are termed micro or bank specific determinants of profitability. According to purpose of each study, researchers will choose internal determinants, there are some bank specific financial ratios representing capital size, asset size, loan, cost, debts, liquidity.
Guru [5] studied on a sample of seventeen commercial bank of Malaysia from 1986 to 1995. This study indicated that the ratio of expense management is one of the most important factors affecting bank's profitability and high interest ratio is related to low bank's profitability. The research in Pakistan, Javaid [6] found that higher total assets do not lead to higher profits due to the diseconomies of scale and higher loans contribute towards profitability but their impact is not significant. Also the result is also found that equity capital and deposits have significant impact on profitability. Moreover, in the study of Molyneux [7] examined the determinants of bank's interest margins and profitability for some European countries. It is found that well-capitalized banks have lower expected bankruptcy costs and better profitability. In many studies in Turkey, Ramlall [8] showed that ratios of equity to assets, loans and liquidity affect ROA positively. Besides, the ratios of deposits to total assets and bad debts affect ROA negatively. In study of Atasoy [9] examined relationship between profitability determinants and structure of expense -income. The results showed that ratio of equity capital and total assets affect ROA positively and ratios of fixed assets and costs to total assets affect ROA negatively. Study of Eljelly [10] investigated the determinants of profitability of Islamic banks in Sudan, one of the few countries had total Islamic economic and banking systems.
Using a sample of Sudanese banks, the study showed that only the internal factors to these banks have a significant impact on banks' profitability, as measured by return on assets (ROA) and return on equity (ROE). More specifically, asset size, cost, liquidity of the bank are found to have positive and significant effects on profitability. Moreover, the study also found that the data are best represented with a random effects model or pooling estimation models. Finally, the study has many implications for banks, regulators and depositors with respect to liquidity, cost and bank structure in Sudan. In research of Olson [11], larger bank size, greater dependence upon loans for revenue, and higher proportion of equity capital to asset have generally been associated with greater profitability. Higher liquidity, greater provisions for loan losses and more reliance on debt have been lower indicative of lower bank profits. Haron [12] examined the determinants of profitability in Islamic banks.
Researchers have managed to examine and identify various internal factors that have a significant influence on bank's profitability. The study found that internal factors such as liquidity, total expenditures, funds invested in securities, and the percentage of the profit-sharing ratio between the bank and the borrower of funds are highly correlated with the level of total income received by the banks. Other determinants such as funds deposited into current accounts, total capital and reserves, the percentage of profit-sharing between bank and depositors, and money supply also play a major role in influencing the profitability of banks. There are many studies about factors affecting bank's profitability in the world. However, each study has different findings because of variation of studying environment and collected data. And these studies results will be important base, especially for next studies.

Listed Banks on Vietnam stock market at a glance
Established in 1990, Vietnam's banking sector has grown tremendously from a mono-banking system to a huge network of banks and financial institutions. Over the past 27 years, the Vietnamese government has initiated many banking reforms for decades to improve the efficiency and competitiveness of the banking system in the country, especially via the privatization of its state-owned banks. Many of the banking reforms in Vietnam have been motivated by the country's entry into international trade and investment agreements, such as the US-Vietnam Bilateral Trade Agreement in 2001 and its accession to the World Trade Organization (WTO) in 2007. The country has gradually deregulated to allow entry of foreign banks. This has led to an increase presence of foreign banks in Vietnam, which has helped to increase the competitiveness and strengths of the banks. The state bank of Vietnam (SBV) has for the first time, granted licenses to wholly foreign-owned banks in 2008.
In January 2014, the ownership limit for a single foreign investor was raised from 15 to 20%, with a maximum ownership for all foreign investors to be capped at 30%. In addition, there has been a growing partial privatization of the state-owned commercial banks (SOCBs) and greater efforts to achieve compliance with the international capital standards under the Basel capital accords. Nevertheless, the reforms for banking sector have been slow, and the banks are still undergoing a restructuring program to address the high level of Nonperforming Loan (NPLs) and other structural problems. Most domestic banks are under-capitalized and reportedly hold a large number of NPLs. The main activity driving the banking sector in Vietnam is commercial banks. There are currently 6 SOCBs, 31 joint stock commercial banks (JSCBs), 5 joint venture banks and 61 wholly foreign-owned banks, banks' branches, and representatives. Although, there are 31 joint stock commercial banks, only 9 banks are listed on Vietnam stock market. This number is really so few comparing with total Vietnamese commercial banks.  Currently, Vietnam has 31 JSCBs, however until December 2016, only 9 banks are listed on Vietnam stock market with an approximate of VND 3.999 trillion in total assets, which contribute to 47,03 percent of the total assets of Vietnam Banking System. The leading listed bank is Vietinbank with 37.234 billion dong in charter capital, followed by Vietcombank (VCB) and BIDV, with 35.978 billion dong and 34.305 billion dong. Moreover, total assets of these banks are 245.900, 255.742 and 193.402 billion dong. It can be seen that three largest listed banks are banks having state capital (Vietinbank, BIDV and VCB). Besides, Saigon Thuong Tin Commercial Joint Stock Bank (STB), also known as Sacombank, is the fourth largest listed bank in terms of total assets size with more than 89.909 billion dong of assets. STB has operating network of about 417 branches and units, which includes 10 branch and sub-branch locations in neighboring Laos and Cambodia. The bank specializes in retail banking and about 40% of its loans go to individual borrowers. STB also offers asset management, equipment leasing, money remittance, and jewelry and precious metals trading services through its five subsidiaries. Saigon -Hanoi Commercial Joint Stock Bank (SHB) is ranked as the fifth largest bank after STB in terms of assets size. SHB was established in 1993 and listed on Vietnam stock market in 2009. Nowadays, SHB has 8.866 billion dong in charter capital after it merged with Habubank (HBB) in 2012. After 20 operating years, SHB diversified its business activities with many services such as consumer and commercial banking products, securities brokerage, asset management, real estate and office lease, trading and development through its subsidiaries.
Military Commercial Joint Bank (MBB) is the sixth largest listed bank with 70.456 billion dong in terms of total assets size. MBB has the fourth largest networks of about 418 branches and units in December 31, 2016. The bank was originally established as a JSCB to provide financing for government military enterprises. MBB also provides many different financial services. Asia Commercial Bank (ACB) is ranked as the seventh largest bank Vietnam. However, the bank has the fifth largest operating network of about 350 branches and units as of 30 June 2016, with approximately half of its operations in the southern region of Vietnam. The bank focuses on individual customers and provided nearly half its loans to individual borrowers. ACB also offers securities brokerage, real estate leasing, and asset management services through its wholly-owned subsidiaries. Vietnam Export Import Commercial Joint Stock Bank (EIB), also known as Eximbank, is ranked as the eighth largest bank after ACB with 47.297 billion dong in terms of assets size.
Till Dec 31, 2016, EIB has operating networks of about 207 branches and units among the 9 largest listed banks in Vietnam, with its business focusing on the commercial hub of Ho Chi Minh City. EIB's operating strengths, as the name suggests, are in areas of export import trade finance and international settlements. The bank is also involved in loan asset management and liquidation services, securities brokerage and real estate investing services through its affiliate companies and subsidiaries. Finally, National Commercial Joint Stock Bank (NCB) has 18.083 billion dong in total assets. NCB was established in 1995. In 2013, NCB was rebranded from Nam Viet Commercial Joint Stock Bank (Navibank) under the restructuring requirements of Government and State Bank in 2013. After more than 4 years of restructuring its business activities, NCB has also gained many achievements. Till Dec 31, 2016, NCB has 98 branches and units. Although, NCB is a small bank, its business strategy is clearly defined, focusing on specific segments and markets and identifying new products and services. In 4 past years, NCB efforted in conducting its restructuring, finding against stagnation, stabilizing operations and strengthening compliance modern banking standards.

Data collection and analyzing method
There are many banks and financial institutions in Vietnam. However, considering the issue of availability of financial data, we selected nine Vietnam commercial banks currently listing their stocks on Vietnam stock market. They are ACB, BIDV, EIB, MBB, NCB, SHB, STB, VCB and Vietinbank. The data is collected in a period of 9 years (2008 -2016), besides the data that forms a panel data set covering in the same period with 9 selected Vietnam joint stock banks operating in Vietnam. The data was obtained from annual financial statements of the respective bank consisting of 81 observations. The researchers then summarized, arranged and computed the required ratios to represent variables in the study model. To analyze the internal determinants, panel data regression techniques were used and tested via the STATA (Version 14) computer software. According to Baltagi [14], panel data contributes several benefits. First, panel data can control individual heterogeneity, which in consequence can cause misleading and biased results. It also reduces multi co linearity problems (as is often the case in time series studies) and provides more data information due to pooling individual and time dimension (in which provides more reliable parameter estimates), more data efficiency, variability and captures a better dynamic adjustments.

Research variables
In the empirical study, in order to analyze the determinants of commercial bank profitability, we include seven variables, one of them is the dependent variable.

• Dependent variable
In the literature, bank profitability, typically measured by return on asset (ROA). ROA is defined as net profit divided by total assets and is expensed in percent.
(1) ROA is general measured for bank profitability reflects bank ability to achieve return its sources of fund to generate profits. Moreover, Desa [15] also indicated that ROA is preferred as measurement for bank performance since it shows bank management's efficiency in managing its capitals to acquire assets and make earnings from it. He added that assets also are part of equity capital since acquiring assets requires a blend of equity capital and debts. Moreover, ROA is valued as the net profit divided by total assets [16].

• Independent variable
Bank's internal factors are determined by commercial bank's management decisions and strategic objectives, such as asset size, capital size, deposits, loan, liquidity and bad debt. We use the following six specific financial indicators as internal factors of bank profitability. Asset size (SIZE): In many researches, asset size of commercial banks is used as a proxy for bank profitability. However, to reduce difference among banks, asset size is assessed by natural logarithm of total asset of the bank. The effect of asset size on profitability is generally expected to be positive [17]. Besides, asset size will promote economies of scale and reduce the cost of gathering and processing information. Bank's asset size is large helping banks providing larger menu of financial services to their customers, and hence mobilize more funds [18]. The asset size of the bank is taken as an internal determinant on the assumption that management of the bank is responsible for expanding their organization by acquiring additional assets and liabilities.
Capital size (CA): Rasidah [19] claimed that capital is better model as an internal determinant of bank profitability, as increase in profit may lead to an increase in capital. The capital size measures ratio of equity capital to asset. It signals the overall shock absorbing capacity of a bank for potential loan asset losses. According to Samad [20], the higher the capital ratio, the stronger is the ability of the bank to withstand asset losses. Additionally, it could be the case that higher levels of equity would decrease the cost of capital, leading to a positive impact on profitability [7]. In fact, most studies that use capital size as an explanatory variable of bank's profitability (Bourke et al., 1989; Molyneux [7]; Goddard [21] observed a positive relationship with the dependent variable. The ratio of equity to total assets (CA) is considered one of the basic ratios for capital strength. It is expected that the higher this ratio, the lower the need for external funding and the higher the profitability of the bank. It shows the ability of bank to absorb losses and handle risk exposure with shareholder. Equity to total assets ratio is expected to have positive relation with performance that well -capitalized banks face lower costs of going bankrupt which reduces their costs of funding and risks [3] [22]. Deposits (DP): Deposits are the main financial source and are the lowest cost of funds. The more deposits are transformed into loans, the higher interest margin and profit are. Therefore, deposits have a positive impact on profitability of the banks. Smirlock [17] found that deposits were a cheaper source of funds and had a positive impact on bank profits.

Loan (LOAN):
The loan indicator is considered as asset quality of commercial banks. Generally, the ratio of loan is used to be loans to total assets. Moreover, loans to total assets ratio is a measure of income source of banks, and it is expected to affect profitability positively unless bank takes on unacceptable level of risk. This ratio is one of the important measures of bank's asset quality and reflects changes in the health of bank's loan portfolio that affects performance of bank negatively [18].

Liquidity Risk (LQR):
The liquidity ratio is measured by bank's current loan to total deposits, or this ratio is used in determining the amount of loans that a commercial bank has out versus the amount of current deposits on hand at that same time. It also indicates that this ratio is a partition between bank's loan and its total amount of deposits. Bourke [3] found a positive significant link between bank liquidity and profitability. However, in times of instability, banks may chose to increase their cash holding to mitigate risk. Unlike Bourke [3], Molyneux [7] concluded that there is a negative correlation between liquidity and profitability levels.
Bad debt (NPL): Bad debts or non-performing loans of bank is the money that the borrower is neither likely to pay any interest nor to repay the principal for commercial banks. Bad debts often have a negative effect on a bank's balance sheet and profitability. It also stands for loans that are granted to customers who would not repay them back. These are losses for the bank and hence all this money features as loss in the banks accounts which in turn reduces the bank's profitability. Research Model To test the relationship, we developed a linear model as follows: Profitability (ROA) = βo + SIZE β1 + CA β2 + LOAN β3 + DP β4 + LQR β5 +NPL β6 + u Profitability is the dependent variable of this research. Explanation of dependent and independent variables along with their proxies are specified in the following Table:   Table 2. Explanation of dependence and independent variables along with their proxies

Research Hypothesis
The present study will test the following hypothesizes: H1: There is existence of negative relationship between Asset Size and bank's profitability H2: There is existence of positive relationship between Capital Size and bank's profitability H3: There is existence of negative relationship between Deposits and bank's profitability H4: There is existence of positive relationship between Loan and bank's profitability H5: There is existence of negative relationship between Liquidity Risk and bank's profitability H6: There is existence of negative relationship between Bad Debts and bank's profitability

Descriptive Statistics
This part of the paper will indicate descriptive statistics and correlation analysis the relationship between dependent variable and independent variables as well as among independent variable with together. The basic descriptive statistics of the variables are calculated in Table 3. For each variable, Table 3 shows mean, standard deviation, minimum and maximum value. On average, joint stock commercial banks on Vietnam stock market in our sample have a return on assets ROA of 0.9% over the entire period from 2008 to 2016. Moreover standard deviation of ROA is 0,5%, minimum and maximum values are 0.01 and 2.1% respectively. It indicates that there is a large difference between the bank having the largest ROA and the bank having the lowest ROA. Besides, mean of Asset Size (SIZE) is 18.94%, minimum value is 16.20% and maximum value is 20.73%. Averages of Capital Size (CA) is 0.08%, minimum value is 0.04% and maximum value is 0.27%. Basing on the Capital Size (ratio of equity capital/total assets), we see that generally equity capital of Vietnam commercial banks in total assets is so little, and it expresses the weakness in capital scale of Vietnam commercial banks. While, mean of deposits ratio (Deposits/Total Assets) which is one of important ratios affecting to bank's profitability is account for 75,67%, minimum value is 17.75%, and maximum value is 91.27%. There is a large difference between the bank having highest rate of deposits ratio and the bank having lowest deposits ratio. Average of Loan ratio (Debt/Total Assets) is 55.85%, minimum value is 33.08% and maximum is 71.89%. Liquidity Risk ratio (LQR) 51.68% on average, while it varies between 30.75% and 68.87%. On the table. , it also reports the mean of non-performing loan -bad debts (NPL). This ratio is measured by total debts of debt group 3 to debt group 5. This ratio is seemed to evaluate loan quality of commercial banks over the year 2008 through 2016. The average of NPL of nine banks is 2.28%, and the bank has the largest ratio to be 9.22%. The following table 4 expresses the correlations relationship among independent variables. According to table 4, correlations relationships among independent variables are not so high from -0.5143 to 0.6905. The correlation of 0.7 and above is considered as highly correlated. However, the above data with correlation values are less than 0.7, the low correlation coefficients show that there are have no multicollinearity problems in the researching model or there are have no multicollinearity problems among chosen financial variables.

Empirical Results from Panel Data Analysis
From the result of table 5 indicates that there are positive correlation relationships among profitability of banks and two financial variables (equity capital -CA, debts of banks/total asset -LOAN). It means that an increase in equity capital and debts/total assets of banks will lead to higher profits of banks. Besides, banks profitability has negative correlation with four remaining financial variables (Total Assets -SIZE, Deposits -DP, Risk Liquidity -LQR, Non performance loan -NPL). As a result, all banks want to enhance their profits, they will have to remain their assets, deposits, risk liquidity and bad debts suitably. To evaluate clearly the relationship between ROA and independent financial variables, we construct and assess regression model with the dependent variable (ROA) and 6 independent variables (CA, SIZE, DP, LOAN. LQR, NPL) . Regression result from researching model is statistically significant, Wald chi2 (6) = 42.80, Prob > chi2 = 0.0000. Therefore, it is obviously that assets, equity capital, deposits, loans, liquidity risk and non performance loan are factors affecting to scale and capacity to make profitability of joint stock banks on Vietnam stock market. Table 6. Determinants of Return on Assets (ROA) Moreover, in table 6, the results for multivariable regression analysis show that NPL is negative at 1% level of significance. SIZE and LQR are negative at 5% level of significance. Besides, LOAN is still positive at 5% level of significance. However, CA and DP have positive and negative association with ROA at 10% level of significance. Also, the value of R2 overall is 0.3559. It explains that 35.59% variation in model is explained by all independent variables jointly. In addition, R2 is 0.4202 that indicates chosen variables in the model is suitable explaining for ROA in each commercial bank. Asset Size (CA) has a negative influence on banks' ROA. The outcomes show that banks with higher asset size normally gain fewer profits. From regression result, if asset size of banks increases 1%, profitability of banks (ROA) will decrease 0.06%. The negative relationship also indicates that, when banks have larger assets, it is more difficult for management and performance of banks. It means that the larger banks are, the more difficult for the banks managing business activities is.
Equity capital has a positive relationship with banks' profitability. This result means that if the banks have enough capital scale, it is easy for them in expanding their business activities (opening new branches, approach funds with low cost, avoiding many financial risks…). A positive coefficient estimate for equity capital of banks is 0.04% affecting to ROA. It means that ratio of equity capital/total assets increase 1%, ROA maybe increase 0.04%. The outcome is in line with the findings of some studies [22]. Besides two financial variables (Assets and Equity Capital), deposits as a measure of impact banks' profitability significant negatively. This result can be explained when banks focus on attracting funds, they often use methods to increase interest rate, this issue is reason to increase cost of mobilize funds. High cost of mobilizing capital will affect profit as well as profitability of banks. With above result, if banks' deposits increase 1%, the banks' profitability will decrease 0.17%. The Loan show an positive impact banks' profitability.
The more loans banks supply for customers, the more profits they can gain. The fact proved that many Vietnam banks had focused on developing new customer loan with hope increasing their profit. From above researching result, if loans of banks increase 1%, ROA will increase 13%. The result of this research are consistent with study of Sufian [2]. Liquidity or risk liquidity has a negative relationship on joint stock banks on Vietnam stock market over the period 2008 to 2016. If liquidity increases 1%, ratio of ROA will decrease 17,12%. It is large impact of liquidity on banks' profit, therefore, the banks show have policies to manage liquidity reasonably. Bad Debts or Non Performance Loan also affect to profitability of banks. It has an negative relationship with banks' profitability. The higher bad debts is, the lower ROA of banks is. In this research, if bad debts decrease 1%, banks' profitability will increase 4.52%. This result is same with the findings of Vong [23].

Conclusions
Not only in Vietnam commercial banks, but also all banks in the world, profitability as well as profit is an important indicator to evaluate performance quality of banks. The study examines impact of 6 financial variables on profitability of 9 joint stock banks on Vietnam stock market. For this purpose, panel data method is used to evaluate statistic data of 9 banks from 2008 to 2016. All data is audited by prestigious auditing enterprises to ensure reliability of collected data. Banks with larger asset size can cause the banks to be less profitable implying management's inefficiency to properly utilize the resources and arrange all business activities. Besides, the ratio of equity capital/total assets impact positively on banks' profitability. These findings indicates that if banks want to increase their profitability, they should focus on enhancing their own capital, as a result of being ensure survival and development of banks. Although, many people think that deposits will help banks increasing their profitability, this statistic result is different. The fact is that if a bank tries to attract deposits by every ways, one of which is using interest rate, it will affect directly to mobilizing capital cost.
As a result, banks' profitability will be down. With three remaining variables are loans, liquidity risk and bad debts, the result indicates that the larger loans banks have, the more profitability they can gain. However, the study still shows that bad debts and liquidity risk (debts/deposits) have negative relationship, it means that if banks supply so much debts over deposits which they mobilize, they will face with liquidity risk and it will affect to banks' profitability. It is obviously that bad debts will have negative relationship with banks' profitability, because if debts can be repaid on time, banks will have to use different resources to solve debt problems, it will cause a decrease in banks' profit. These findings provide some crucial implications for the profitability improvement of joint stock banks on Vietnam stock market. The empirical analysis is assumed to add valuable information to the literature about the Vietnam banking sector in a different context especially after the world financial crisis. The results of study also confirm some previous findings while showing disagreement with others.

Recommendations
From research results, we suggest some following policies for listed banks on Vietnam stock market: First, improving the quality of human resource; Human resources, particularly high quality human resources is considered one of the most important resources for development of the country and all enterprises in the economy. Improving the quality of human resources is being paid more attention by policy makers as well as organizations. Vietnam commercial banks should focus on improving quality of human resource to enhance business efficiency and profits. Vietnam commercial banks should have long time strategies to train and retrain human resources. Besides, banks should enhance cooperation with international financial organizations to exchange staffs to study experiences and new technologies. Moreover, one of methods to improve quality of human resources is increasing welfare for staffs especially in salary, reward and remuneration policy.
Second, increasing foreign ownership in Vietnam joint stock banks in order to raise capital, resolve bad debts, and speed up restructuring. There are many Vietnam banks having sold shares to foreign investors. These are mainly banks going through restructuring, such as Saigon Bank, BacA Bank or VietA Bank. Under the current rules, foreign ownership in Vietnamese banks is limited to a maximum of 30 per cent, and each foreign investor is restricted to own a maximum of 20 per cent. This number is so low with real capital demand of Vietnam banks. Nowadays, many commercial banks have already hit the foreign ownership limit. Therefore, they have expressed the desire for bigger "room" for foreign investment in order to raise capital, resolve bad debts, and speed up restructuring. Therefore, State Banks and authorities should permit large banks to buy 35 -40 per cent, whereas smaller banks can sell 49 or 51 per cent. Until now, the State Bank of Vietnam has restructured the nine weakest banks, but it is still difficult for foreign investors to wholly own a domestic bank.
Third, building strategies to mobilize capital with reasonable expenses; Banks should build mobilization policies basing demand and capital market. Besides, banks should exploit and enhance to cooperate with international finance institutions to mobilize capital source with low expense. Moreover, banks should restructure their organizations to use capital effectively, ensure to avoid dilapidating mobilized capital sources. The findings of this study reflect the current situation of nine listed banks on Vietnam stock market. In Vietnam, there have not been so many empirical researches investigating the impact of internal factors on profitability of Vietnam listed banks. The result of this study will be the base for Vietnam commercial banks having solutions to increase their profit in the future.