THE EFFECT OF CREDIT GROWTH ON CREDIT RISK OF THE COMMERCIAL BANKS IN VIETNAM

  • Phạm Xuân Quỳnh
Keywords: Credit growth, Credit risk

Abstract

Credit is a main activity of Vietnamese commercial banks, it plays an important role in making profits and developing the banks. Credit growth not only support companies but also develop Vietnamese economy. However, credit risks are always potential factor and unavoidable in credit activities. The study analyzes the impact of credit growth on the bank’s credit risks through using data from financial statements of 27 commercial banks in Vietnam during the period from 2013 to 2019. By using FEM model, the result shows that credit growth in the current year leads to decrease credit risk in both cases is internal and mergers credit growth and only internal growth. Moreover, credit risks in the current year are also affected by the level of credit risk in the past, the ratio of equity and bank’s profit margins.

điểm /   đánh giá
Published
2020-12-08
Section
Bài viết