Abstract
The study focus on analysing financial status of consumer credit customers of Vietnamese commercial banks through two group discriminant function. Five independent variables were used in which some variables are related with the loan and the others are related with the demographic and socio-economic conditions of the borrower. Particularly, the variables related with the demographic and socio-economic conditions of the borrower are age; number of dependents; years at present job and salary while the independent variable related with the loan is loan amount. The result indicates that the estimated function is significant at 1 per cent level of significance and could forecast financial health with average 72.3 per cent accuracy. Therefore, in this study, the demographic, socio-economic and loan related variables can be used to determine the expected group membership of the borrowers in Vietnam.
Highlights
IntroductionConsumer credit is the term stands for the express loan facilities to the common people that have to repay with interest by equal monthly installment and the credit is not used for any commercial purpose
The idea of consumer credit is extensive
Consumer credit is the term stands for the express loan facilities to the common people that have to repay with interest by equal monthly installment and the credit is not used for any commercial purpose
Summary
Consumer credit is the term stands for the express loan facilities to the common people that have to repay with interest by equal monthly installment and the credit is not used for any commercial purpose. It is substantially better to use discriminant analysis to determine the expected position or a score for the borrower to make the credit grant decision. A quantitative effort is made to forecast the expected position of the consumer credit applicant via the discriminant analysis. We use the discriminant analysis to develop predictive models allowing to distinguish between “good” and “bad” borrowers. The data have been collected from commercial Vietnamese banks over a 3-year period, from 2014 to 2016
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
