FACTORS AFFECTING CREDIT RISK FOR INDIVIDUAL CUSTOMERS AT VIETNAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT, BINH THANH BRANCH, HO CHI MINH CITY

Abstract

The main objective of the study is to determine the factors affecting credit risk for individual customers at Vietnam Bank for Agriculture and Rural Development, Binh Thanh Branch, HCMC. In order to achieve the research objectives, the author used comparative and absolute numerical analysis methods; Descriptive statistics method; Probit regression method to identify factors affecting credit risk. The research results show that of 09 independent variables included in the research model, 05 variables correlated with the dependent variable which is the borrower's financial ability (X1); Industry (X3); Checking and supervising loan debts (X4); Experience of credit officer (X5); Number of dependents (X8). In particular, the variable that is positively correlated with the dependent variable is the number of dependents; The borrower's industry variable is the one that has the strongest impact on the dependent variable, followed by the borrower's financial ability. Based on the research results, the author proposes a number of solutions to improve credit efficiency for Vietnam Bank for Agriculture and Rural Development, Binh Thanh Branch as follows: Selection of credit officers experienced; Assess the number of dependents; Credit officers enhance inspection and supervision of loans; Increasing the financial security of borrowers; Focus on the main business that generates the income of customers when reviewing loan applications.