INFLUENCE OF LENDING DECISIONS ON SMALL AND MEDIUM ENTERPRISES DEVELOPMENT (CASE OF VIETINBANK, TIEN GIANG PROVINCE, VIETNAM)

  • Ai Tran Huu Van Hien University, Ho Chi Minh City
  • Nguyên Le Thi Minh HUTECH University, Ho Chí Minh City
Keywords: credit capital, SMEs, Vietin Bank, Tien Giang

Abstract

Small and medium-sized enterprises (SMEs) in the world are an indispensable part of the national economy. Customer information is always an important input data for the banking industry. Currently, banks are facing the problem of information asymmetry because borrowers provide unreliable and transparent information (data on financial and non-financial statements).

Research approaches the theory of distribution of bank credit capital based on the theory of Asymmetric Information; The theory of adverse selection of credit markets; Moral hazard theory; Social capital theory; Theory of application in banking administration.

The results of the factors affecting the bank's lending decision from high to low: (1) Information about the relationship with the bank (MQHNH) (ES = 0.207, P = 0.000); (2) Information on the capacity of the owner of the enterprise (NLCSH) (ES = 0.158, P = 0.005); (3) Social Information (ESR) (ES = 0.111, P = 0.020); (4) Information on Collateral (TSTC) (ES = 0.100, P = 0.022); (5) Information on Corporate Finance (TCDN) (ES = 0.088, P = 0.005) and (6) Information on Credit History (LSTD) (ES = 0.070, P = 0.009).

Author Biographies

Ai Tran Huu, Van Hien University, Ho Chi Minh City

Ph.D.,  Lecturer of Faculty of Economics, Van Hien University, Ho Chi Minh City, Vietnam

Research interests: markets agricultural products, SMEs functioning and government support, organic foodmarkets, ecological economics, environmental issues of economic development, and corporate social responsibility

Published more than 90 papers in international journals, member of the editorial board of international journals

Nguyên Le Thi Minh, HUTECH University, Ho Chí Minh City

MBA, lecturer of Faculty of Economics, HUTECH University, Ho Chí Minh City, Vietnam

Research interests– markets of agicultural products, SMEs functioning and government support, organic food markets, ecological economics

Published more than 30 papers in international journals

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Published
2022-05-30
How to Cite
Huu, A., & Minh, N. (2022). INFLUENCE OF LENDING DECISIONS ON SMALL AND MEDIUM ENTERPRISES DEVELOPMENT (CASE OF VIETINBANK, TIEN GIANG PROVINCE, VIETNAM). The EUrASEANs: Journal on Global Socio-Economic Dynamics, (3(34), 20-33. https://doi.org/10.35678/2539-5645.3(34).2022.20-33