Research on Factors Affecting Credit Risk of Joint Stock Commercial Banks on Vietnam Stock Market

Abstract

Design/methodology/approach: The article aims at identifying factors affecting credit risk of commercial banks in Vietnam. The study uses data collected from financial statements of 15 typical joint stock commercial banks out of a total of 27 joint stock commercial banks listed on the Vietnam stock exchange from 2012 to 2022 with panel data of 15 joint stock commercial banks for the period 2012 - 2022. The banks in the research data are the those with the largest total assets in the banking system. After collecting and processing data, research sample includes 165 observations and the study uses E-view software in quantitative analysis to build a regression model to determine the relationship and level of influence of Internal factors to credit risk of listed joint stock commercial banks.
 
 Findings: Research results indicate that factors affecting credit risk of listed joint stock commercial banks include: Ratio of equity to total assets, capital structure of the bank, and operational performance of the banks.
 
 Research, Practical & Social impications: These results confirm the importance of taking into account micro finance factors when making financing. Understanding the impact of these factors and relationships contributes to decision and risk management.
 
 Originality/value: In order to limit credit risk it is necessary to focus on: Ensuring reasonable equity; Stricter control over loan capital; Optimal use of resources.