International Journal of

ADVANCED AND APPLIED SCIENCES

EISSN: 2313-3724, Print ISSN: 2313-626X

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 Volume 9, Issue 2 (February 2022), Pages: 31-40

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 Original Research Paper

 Title: Determinants of credit risk at Vietnam bank for agriculture and rural developments in Can Tho City

 Author(s): Quang Vang Dang 1, Viet Thanh Truc Tran 2, Van Nam Mai 3, Long Hau Le 2, Quoc Duy Vuong 2, *

 Affiliation(s):

 1Faculty of Economics, University of Technology and Education, Ho Chi Minh City, Vietnam
 2Department of Finance and Banking, College of Economics, Can Tho University, Can Tho, Vietnam
 3Graduate School, Can Tho University, Can Tho, Vietnam

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 * Corresponding Author. 

  Corresponding author's ORCID profile: https://orcid.org/0000-0002-6870-4106

 Digital Object Identifier: 

 https://doi.org/10.21833/ijaas.2022.02.004

 Abstract:

The aim of this study is to investigate factors affecting credit risks of the borrowers (both corporate and individual customers) of Vietnam bank for agriculture and rural development's branch at Can Tho city (lender), thereby proposing several solutions to improve the bank’s operational efficiency in the upcoming years. Simultaneous qualitative and quantitative research methods are applied and secondary data from 102 corporate customers and 2100 individual clients are collected directly from the financial report of the Can Tho branch of Vietnam bank for agriculture and rural development (Agribank) until the end of 2018. A binary logistics model is employed to identify the determinant factors of the credit risk of bank customers. Estimation results reveal that the credit risk of corporate customers is affected by the factors of sales growth, return on sales ratio, Debt to equity ratio, collateral-to-outstanding loan balance ratio, and customer's loan history which are consistent with those of previous studies, whereas the credit risk of individual customers is influenced by the factors of age, educational level, loan purpose, loan maturity, type of collateral, customer income, and customer loan history, which are confirmed by previous studies. The empirical findings of the article imply that the Can Tho branch of Agribank should take precautions in order to limit the credit risk of bank customers. In addition, several governance recommendations are given for bank’s manager to improve the operational efficiency of bank. 

 © 2022 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords: Credit risk, Binary logistics model, Commercial bank, Vietnam

 Article History: Received 3 August 2021, Received in revised form 23 October 2021, Accepted 27 November 2021

 Acknowledgment 

No Acknowledgment.

 Compliance with ethical standards

 Conflict of interest: The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

 Citation:

 Dang QV, Tran VTT, and Mai VN et al. (2022). Determinants of credit risk at Vietnam bank for agriculture and rural developments in Can Tho City. International Journal of Advanced and Applied Sciences, 9(2): 31-40

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 Tables

 Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10  

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