Factor analysis of the credit risk provisions in VietNam commercial banks

Abstract

This paper analyzes the factors affecting the credit risk provisions of Vietnam's commercial banks (including 27 commercial banks in Vietnam from 2008-2013). Based on relevant theories and previous research surveys, the most consistent models and assumptions are considered to be used for figuring out the factors impacting credit risk provisions in the Vietnam commercial banks. The findings indicate that Marginal Net Interest Income, Bad Debts Ratio and Bank Size have positive movements with the ratio of credit risk provisions, whereas Return on total Assets does negatively. For further purpose, the findings would be useful for agencies and administrators to set policies related to the credit risk of commercial banks in Vietnam.

Keywords

• rủi ro tín dụng
• trích lập dự phòng
• nhtm việt nam