| Abstract | Credit risk is always treated as the major risk inherently existing in a bank’s activities. And
if it is not well managed, this kind of risk may drag a bank into great trouble or even
bankruptcy. On the bank’s perspective, managing credit risk is not a simple task since
comprehensive considerations and practices are needed to identify, measure, control and
minimize credit risk.
Recently, the Vietnamese banking sector has played an important role contributing to the
development of the Vietnamese economy. In particular, credit operations are primarily
accounted in the operation of the bank and this is always potentially risky activity,
delinquency, bad debt, and there is an increasing trend in credit growth-advantage. Credit
risk really becomes a serious issue in Vietnamese banking system nowadays.
The main purpose of this study is to analyze, identify and measure the reasons that lead to
credit risk of Vietnam Export Import Commercial Joint-stock Bank (Eximbank), one of
Vietnam top five joint stock commercial banks. Additionally, it gives some solutions to
prevent and reduce credit risk.
Regarding supporting material for the analysis, I not only conducted an interview with ten
Eximbank senior managers and directors who have respectful achievement and life-time
experience in the financial service industry but also polled up result from questioning more
than 350 Eximbank staffs whom I have the pleasure to work with. According to this study,
building and improving credit risk management environment, monitoring a credit process
correctly and accurately, maintaining the effective monitoring and measuring credit
process, promoting the credit risk control and improving quality and efficiency of credit
supervision department are important methods to help the Eximbank reducing and
preventing credit risk as well as improving the credit risk management ability to increase
business performance and compete with other banks successfully. |