An Analysis On Credit Risk Management Policies Of Vietnam Commercial Banks

Credit risk is one of the most usual ones which any commercial banks may encounter during their operation. It not only causes losses which result in bankruptcy but also cause the most serious issues of financial and economic crisis of one nation.The capability of credit risks management of Vietnam commercial banks is low and the rate of bad debt in the entire system is higher than international standards. Consider this situation after referencing a great number of documents, this paper studies credit risk management of typical commercial banks in Vietnam, analyzes the remaining issues in their credit risk control and offers them some solutions to the entire system. Due to the fact that credit risk management after disbursement by most of commercial banks is still weak, it is needed to particularize the method of identifying credit asset debt, carry out actual management of credit asset and base on tendency of bad debt to offer solutions for every time period. In conclusion, what motioned herein comes from credit risk management in consideration of prevention.This article is divided into five chapters. The first chapter based on existing literature of the field and makes researching frame of the paper. It also presents the topic background, methodology, researching steps and definitions of the terms related. Chapter 2 is the major implications for the commercial bank credit risk, the causes, measuring method and sets forth the basic relevant theory. Besides, it introduces the tendency of the development of Vietnam’s commercial bank credit risk control and proves its significant importance. Chapter 3 analyzes the current situation and problems of credit risk control of industrial and commercial bank, combined with the data and asset quality, then find out its existing problems. Chapter 4 based on the analysis of the problems and the research, it suggests some implications, improves the credit risk culture construction, strengthen the company’s credit risk identification ability, standardizes corporate credit risk process management, and carry out the company credit personnel incentive mechanism. The fifth chapter is the summary of the full text.The research and analysis in this paper is hoped to have certain reference valueto other commercial bank credit risk control, and also, its optimization advice is believed to help Vietnam’s commercial bank company incontrolling credit risk.