Credit analysis in Vietnamese banks | |
| Author | Nguyen Minh Hoi |
| Call Number | AIT RSPR no.SM-03-55 |
| Subject(s) | Credit--Vietnam Banks and banking--Vietnam |
| Note | A research study submitted in pa11ial fulfilment of the requirements for the degree of Master of Business Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-03-55 |
| Abstract | Vietnamese banking system faces many problems: the high level of bad loans to SO Es and bankrupt groups, the low level of expertises, regulation and supervision. Recently, SBV has implemented many reform programs in order to handle these problems and create a better financial operating environment for banks. These problems have strong affected the growth rate and contribute to the decline in industrial production and foreign investment. Therefore, banking industry and banks themselves have to improve externally and internally in order to contribute effectively to social economic development and renewal the country. There are much more work to do to reform banking industry but this research focuses much internally aspects of the banks- "Credit analysis". Weakness in Credit risk assessment is not the only one reason contribute to the high ratio of bad debt, NPLs of the Vietnam banking system, burden bad debts brought on by a variety of reasons inappropriate macro economic environment and policy, indispensable risks of liberalization of the internationalisation banking activities, force majeures, disasters and extraordinary of the weather, and lastly, poor management of Vietnamese banks is accompanied with high level of over due debt. But Credit analysis is one of the very important tool helps banks assess the level of risk of customers and based on that bankers will lend to right customers. That also helps to reduce the bad debts in the future and improve the credit portfolio of the banks. This research has analyzed deeply the business activities of banking industry especially in credit activities, constraints of Vietnamese banking industry and analyse the reasons led to high level of bad debt in overall banking industry. The research has analysed the Credit Analysis of Vietnamese banks and successful foreign banks in Vietnam and found out some weakness of the Vietnamese banks such as so much based on the credit officer judgements, personal relationships, take care of collaterals and guarantees rather than do the real analysis based on to find capable borrowers. The lending guidelines are so simple and ignored some important aspects of risk. The researcher tries to give some recommendation to the Vietnamese banks to help improve the credit risk assessment and quality of loan portfolio. |
| Year | 2003 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-03-55 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Ramachandran, Neelakantan |
| Examination Committee(s) | Truong Quang; Swierzeck, Fredric W. |
| Scholarship Donor(s) | Asian Institute of Technology; Government of France |
| Degree | Research report (M.Sc.) - Asian Institute of Technology, 2003 |