Identify the determinants to credit risk in the Vietnamese banking sector
Abstract
Credit risk is an attitude of lending loans and mobilizing capital activities. It happens when loan payment is delayed or failure by the borrowers. It will affect badly cash flow turnover. More seriously, it will affect the liquidity of the banks.
The purpose of this research is to identify the determinants to credit risk in Vietnamese banking sector by the financial ratios. This paper investigates both in macroeconomic factors and microeconomic factors with the variables that are likely to influence on credit risk. Its sample is 8 banks listed on Vietnam Stock Exchange during
the period from 2007 to 2011 by quarter. The result of this research shows that credit risk is impacted by gross domestic product ratio, inflation rate, loan growth and bank
size.