Assessment of the financial safety of securities companies in Vietnam
Nguyen Phuong Anh
Citation: Proceedings of the 2021 International Conference on Research in Management & Technovation, Vu Dinh Khoa, Shivani Agarwal, Gloria Jeanette Rincon Aponte, Nguyen Thi Hong Nga, Vijender Kumar Solanki, Ewa Ziemba (eds). ACSIS, Vol. 28, pages 63–71 (2021)
Abstract. The study was carried out to assess the financial safety of securities companies in Vietnam through the CAMEL system and Decision 617/QD-UBCK dated October 9, 2013 of the Chairman of State Security Commission of Vietnam (SSC) on guiding the classification of Vietnamese securities businesses. The study used statistical and data collection methods from financial statements and financial safety ratio reports of 71 securities companies which are the members of Ho Chi Minh Stock Exchange in the period 2013-2019. From there, the author calculated and analyzed the groups of criteria for assessing financial safety of securities companies, including: Capital Adequacy (C); Asset Quality (A); Earnings Power (E) and Liquidity (L). The results showed that the financial safety of most securities companies between 2013 and 2019 has been guaranteed, only a few securities companies have not gained capital adequacy or remained low profitability, causing prolonged business losses. Therefore, the study proposed a number of solutions to ensure financial safety for the system of securities companies in Vietnam.
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