Evaluating Credit Risk Management at Agribank Tu Liem
Pham, Tien (2015)
Pham, Tien
Haaga-Helia ammattikorkeakoulu
2015
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2015060812775
https://urn.fi/URN:NBN:fi:amk-2015060812775
Tiivistelmä
In recent years, bad debts have started to become a huge threat for Vietnamese economic growth. As a result of global economic crisis and unfavorable conditions in Vietnam, the bad debt ratio of the commissioning bank has also become alarming, and the bank has struggled in controlling the credit risk.
The aim of this research is to assess the effectiveness of the commissioning bank’s credit risk management based on a comprehensive theoretical framework. Moreover, the readers will learn more about the banking business, banking risks, risk management and credit risk management. Readers will also know how the objective is reached through three investigative questions.
In this thesis, the theoretical framework will provide evaluation criteria that will be compared to the bank’s credit risk management. There are five main categories of evaluation criteria: minimizing credit risk, lending organization, written loan policy, lending process and credit analysis.
The thesis is based on qualitative research methods, using interviews with three experienced employees, internal reports and literature about credit risk management.
The evaluation of data collected indicates that the credit situation and credit risk management of the investigated bank has been satisfactory in the past few years, but there are still some weaknesses that the bank needs to consider.
Based on the results, the recommendations for the bank, such as implementing loan pricing software, reviewing the lending organization and the lending process, are given.
The aim of this research is to assess the effectiveness of the commissioning bank’s credit risk management based on a comprehensive theoretical framework. Moreover, the readers will learn more about the banking business, banking risks, risk management and credit risk management. Readers will also know how the objective is reached through three investigative questions.
In this thesis, the theoretical framework will provide evaluation criteria that will be compared to the bank’s credit risk management. There are five main categories of evaluation criteria: minimizing credit risk, lending organization, written loan policy, lending process and credit analysis.
The thesis is based on qualitative research methods, using interviews with three experienced employees, internal reports and literature about credit risk management.
The evaluation of data collected indicates that the credit situation and credit risk management of the investigated bank has been satisfactory in the past few years, but there are still some weaknesses that the bank needs to consider.
Based on the results, the recommendations for the bank, such as implementing loan pricing software, reviewing the lending organization and the lending process, are given.