Credit risk management at Vietcombank QuyNhon branch

Abstract

There are no rooms for doubt that the business operation of economy is affected significantly by credit operation in financial institutions, especially in Banking, due to the fact that it is considered as the main source of income in financial institutions and commercial banks. Along with the development of Vietnam commercial banks in recent years, credit activities also experience a rapid growth. However, due to the difficulties in economy and the weaknesses in credit risk management, the bad debt ratio (NPLs ratio) increases steady over years which affects negatively the business performance and the profit of Vietnam commercial banks. As the result, the arising problem is how to expand the scale of credit operation together with an effective management for commercial banks. This study focuses on analyze the credit problems, evaluate the effectiveness of credit risk management at Vietcombank QuyNhon Branch and simultaneously give some recommendations to improve the management of credit risks at this Branch. In order to reach to set objectives, I had in-depth interviews with credit officers of Vietcombank QuyNhon Branch. Also, I collected information from annual financial reports, loan documents, internal policies of Branch. Besides, the useful information in the internet, relevant books and journals are also collected.