Improving credit risk management at Vietnam Development Bank in the current period

Abstract

The article analyzes the situation and offers solutions for improving credit risk management at Vietnam Development Bank (VDB) in the current context. VDB, which plays an important role in implementing national credit policy, is currently facing challenges due to the lack of an effective credit risk management model, leading to a high bad debt ratio. To improve the situation, the authors have made a comprehensive assessment of credit risk management at VDB and proposed many measures, including: restructuring the management apparatus, building risk appetite management strategy, implementing a three-line system of defense, standardizing the document system for management and decentralizing decision-making authority in credit activities. These proposals not only aim to optimize risk management, but also promote sustainable development of the bank, while ensuring the effective implementation of the State’s macroeconomic goals.