FACTORS INFLUENCING THE QUALITY OF CREDIT IN COMMERCIAL BANKS OF VIETNAM

Abstract

The study aims to determine the factors affecting credit quality at commercial banks and analyze the degree of influence of those factors on credit quality. Usable data were collected from face-to-face interviews with 347 survey subjects — credit officers at the Head Office, credit directors of some bank branches, and credit officers of joint-stock commercial banks. The research results show that seven factors affecting credit quality can be arranged in the following descending order of impact, namely: Credit officer, Credit policy, Management capacity, Banking technology, Risk management, Organizational work, Mobilized capital. Basing on the obtained results, some solutions are proposed to improve the credit quality at commercial banks in Vietnam.