FACTORS AFFECTING CREDIT RISK OF INDIVIDUAL CUSTOMERS AT BANK FOR FOREIGN TRADE OF VIETNAM CAN THO BRANCH

Abstract

The study "Factors affecting individual customer credit risk at Can Tho VCB will be conducted from 2021-2023. The study used comparative and absolute numerical analysis methods; Descriptive statistics and Probit regression methods to identify factors affecting credit risk. The research results show that of the 09 independent variables included in the research model, 05 variables correlate with the dependent variable, which is the borrower's financial ability (X1); Occupation (X3); Check and monitor loan debt (X4); Experience of credit officers (X5); Number of dependents (X8). In particular, the variable that has a positive correlation with the dependent variable is the number of dependents; The borrower's industry variable is the variable that has the strongest impact on the dependent variable, followed by the borrower's financial ability variable. Based on the research results, the author proposes several solutions to improve credit efficiency for Can Tho VCB such as selecting experienced credit officers; Assessing the number of dependents; Credit officers strengthening inspection and supervision of loan debt; Increasing the financial security of borrowers; Pay attention to the main industry that generates customers' income when reviewing loan applications.