Macro – Micro Factors Affecting the Bad Debt of Commercial Banks in Ho Chi Minh City

Abstract

Lending activities of commercial banks always contain risks and the possibility of arising bad debt is a clear manifestation of credit risk. Bad debt will have consequences not only to banking but also to the economic development in Vietnam. Therefore, taking the risk to take measures to prevent risks and to deal with losses is a necessary and effective way of banking credit in general and lending activities in particular. The study results showed that there were 250 credit managers who interviewed and answered about 12 questions. Data collected from July 2016 to April 2017. This study had been analyzed Cronbach’s Alpha, KMO testing and the result of KMO testing used for the next research of the regression. Managers’ responses measured through an adapted questionnaire on a 5-point Likert scale (Conventions: 1: Completely disagree, 2: Disagree, 3: Normal; 4: Agree; 5: completely agree). Hard copy and online questionnaire distributed among 5.000 credit managers of commercial banks in Ho Chi Minh City. In addition, two components affecting the bad debt of commercial banks in Ho Chi Minh City with significance level 5 percent and then the researcher has policies improving the business success of the commercial banks in Ho Chi Minh City in the future

Keywords: Bad Debt And Hutech, Commercial Banks, Ho Chi Minh City


Article Review Status: Published

Pages: 60-71 (Download PDF)

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