Financial and non-financial indicators of default risk : a study of bank for investment and development of Vietnam | |
| Author | Nguyen Thi Minh Hang |
| Call Number | AIT RSPR no.SM-06-98 |
| Subject(s) | Investment banking--Vietnam Banks and banking--Risk management--Vietnam |
| Note | A research study submitted in partial fulfillment of the requirement for the degree of Master of Business Administration |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-06-98 |
| Abstract | There are abundant researches on exploring of powerful discriminating default indicators and developing default risk prediction model, but there is few study focuses particularly on the model for banking industry in Vietnam in both financial and non-financial perspectives. This research emphasizes on the loan portfolio analysis of Bank for Investment and Development of Vietnam to identify the best discriminating indicators between defaulting and non-defaulting firmn. The empirical test was conducted by multivariate discriminant analysis with the application for both financial and non-financial factors. The key findings reveals one financial indicator (Working Capital Turnover) and five non-financial indicators (related to Credit Policy of the bank, Inter-organizational relationship and Risky Frequency of Firm's Industry) could be considered as significant default predictors. Following that, the discriminant function based on Z scores model (Altman, 1968) was developed in the light of investigating the more important role of non-financial indicators. Those findings pave the way of new approach in credit ranking for commercial banks in Vietnam |
| Year | 2006 |
| 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) | Venkatesh, Sundar; |
| Examination Committee(s) | Do Ba Khang ;Sununta Siengthai ; |
| Scholarship Donor(s) | French Government ;AIT Fellowship; |
| Degree | Research Studies Project Report (M. BA.) - Asian Institute of Technology, 2006 |