scholarly journals Factors affecting credit risk in lending activities of joint-stock commercial banks in Vietnam

2021 ◽  
Vol 8 (2) ◽  
pp. 228-239
Author(s):  
Thanh Ngo ◽  
Vinh Le ◽  
Hai Le
Keyword(s):  
Economic Growth ◽  
Credit Risk ◽  
Commercial Banks ◽  
Nonlinear Effects ◽  
Financial Statements ◽  
Relative Importance ◽  
Bank Capital ◽  
Factors Affecting ◽  
Positive Effects ◽  
Loan Growth

This paper studies factors affecting credit risk in lending activities of joint-stock commercial banks in Vietnam. Data is collected from audited financial statements of 23 banks, and macroeconomic data from General Statistics Office of Vietnam in the period of 2009 – 2019. This paper uses GMM method which is carried out by using R programing language in Jupyter Notebook. The findings show that lagged credit risk, profitability and inflation have positive effects on credit risk, while bank capital, bank size, economic growth and loans to deposits ratio have negative ones. In addition, the findings also show that the nonlinear effects of loan growth on credit risk with U shape relationship, and this paper also calculates the relative importance of each variable.

Effects of Specific Banking Factors on Credit Risk of Vietnam’s Commercial Banks

2015 ◽  
Vol 22 (02) ◽  
pp. 70-84
Author(s):  
Diep Nguyen Thi Ngoc ◽  
Kieu Nguyen Minh
Keyword(s):  
Credit Risk ◽  
Commercial Banks ◽  
Financial Statements ◽  
Individual Investors ◽  
Negative Effects ◽  
Income Ratio ◽  
Research Findings ◽  
Using Data ◽  
Loan Growth

Applying OLS approach, the paper aims at identifying specific banking factors which impact on credit risk of Vietnam’s comercial banks. Using data collected from financial statements of 32 Vietnam’s commercial banks in the years 2010–2013 and the application of OLS, three idendified factors comprise loan growth, size, and cost-income-ratio. Based on the research findings, several recommendations are proposed for individual investors, further contributing to prompt awareness of the factors with negative effects on credit risk and proper control of lending boom impacts.

scholarly journals The Bank Specific Determinants of Loan Growth and Stability: Evidence from Indonesia

2021 ◽  
Vol 36 (2) ◽  
pp. 93-123
Author(s):  
Pananda Pasaribu ◽  
Bonnie Mindosa
Keyword(s):  
Economic Growth ◽  
Credit Risk ◽  
Research Methods ◽  
Commercial Banks ◽  
Comprehensive Analysis ◽  
Bank Loans ◽  
Bank Stability ◽  
Small Banks ◽  
Loan Growth

Introduction/Main Objectives: This study aims to examine the specific determinants of loan growth and the consequences of excessive loan growth on bank stability. Background Problems: Bank loans play an important role in economic growth, but previous studies indicate that excessive loans lead to bank instability. Novelty: This study undertakes a comprehensive analysis, as it will discuss both the loan determinants and excessive loans simultaneously. Research Methods: This study covers more than 89% of the total loans of commercial banks (listed and non-listed banks) between 2002 and 2018 and it employs GMM in order to obtain robust estimations. Finding/Results: The growth of customers’ deposits and gross NPL are the most important factors in explaining loan growth in Indonesia. Banks with excessive loans tend to have high levels of credit risk. Conclusion: Banks’ liquidity and credit risk have important roles in explaining banks’ loans. However, excessive loans could lead to bank instability, particularly for small banks.

scholarly journals Assessing the Impact of Bank Concentration and Liquidity of Refah Bank Branches on Profitability during the Period1383-190

2014 ◽  
Vol 4 (1) ◽  
pp. 248
Author(s):  
Hossin Ostadi ◽  
Nastran Monsef
Keyword(s):  
Commercial Banks ◽  
Bank Capital ◽  
Factors Affecting ◽  
Bank Branches ◽  
Independent Variables ◽  
Bank Deposits ◽  
The Impact ◽  
Bank Concentration ◽  
Research Period

Profitability is an important factor to show this articledoeswhat is the role of the intermediary bank to collect your savings and allocation of loans.  Given the importance of profitability indicators in this study, the factors affecting the profitability of commercial banks in Iranare analyzedwith emphasis on the degree of centralization and bank deposits. Dependent variable is indicators of profitability (ROE, ROA) and bank deposits, bank size, bank capital, focus on liquidity and banking requirements are independent variables. Correlation analysis and OLS regression are used and the research period is 1381 to 1390 that the country's territory where bank branches.Our results indicate that the effect of bank size on profitability is positive and the increase in bank size on profitability is increased. Impact on the profitability of bank deposits is positive, ie increasing the profitability of bank deposits increased. Finally, the impact of bank concentration on profitability is positive. Increasing the bank's focus profitability increases. Moreover, the results adversely affect the liquidity of the index is profit. 

Risk Behavior, Country Governance, and Bank Stability in Pakistan

2021 ◽  
pp. 185-203
Author(s):  
Hafiz Waqas Kamran ◽  
Abdelnaser Omran
Keyword(s):  
Economic Growth ◽  
Credit Risk ◽  
Risk Behavior ◽  
Commercial Banks ◽  
Financial Stability ◽  
Operational Risk ◽  
Bank Stability ◽  
Regression Methods ◽  
The Stability ◽  
Control Of Corruption

Keeping risk behavior and country governance in observation, this study has investigated the trends in financial stability for a sample of 22 commercial banks in Pakistan while controlling the effect of economic growth. Over the period of 2007 to 2016, the authors have applied OLS, FE, and RE regression methods to investigate which risk and governance factors are influencing the stability measures of the banks. It is found that financial stability in overall banks is affected by credit risk, operational risk, country risk, and financial crisis risk while control of corruption is also affecting ZROA in an adverse way.

scholarly journals KARAKTERISTIK DAN FUNGSI INTERMEDIASI PERBANKAN DI INDONESIA

2012 ◽  
Vol 15 (1) ◽  
pp. 61-83
Author(s):  
Renniwaty Siringoringo
Keyword(s):  
Capital Structure ◽  
Credit Risk ◽  
Ownership Structure ◽  
Commercial Banks ◽  
Multivariate Regression ◽  
Total Effect ◽  
Bank Capital ◽  
Level Data ◽  
The Capital Structure

This paper analyzes the influence of ownership and specific characteristic of banks on the capital structure and the intermediation function of commercial banks in Indonesia. Using multivariate regression on bank level data of 2006-2009, the result shows the ownership structure, profitability, size, and management expense affect the bank capital structure, with a total effect of 50.14%. Towards the bank intermediation, with a total effect of 27.01%, the ownership structure, profitability, bank size, credit risk, expense management and capital structure influence the banks intermediation function.Keywords : Ownership structure, specific characteristic of bank, capital structure and bank intermediation functionJEL Classification: G21, G32

scholarly journals The Most Important Factors Affecting Profitability of The Top 10 Commercial Banks in Asean

2018 ◽  
Vol 5 (5) ◽  
pp. 4742-4753
Author(s):  
Indra Satria ◽  
Edy Supriyadi ◽  
Agus s. Irfani ◽  
Achmad Djamil
Keyword(s):  
Gross Domestic Product ◽  
Commercial Banks ◽  
Financial Statements ◽  
Domestic Product ◽  
Bank Profitability ◽  
Factors Affecting ◽  
Panel Data Regression ◽  
Data Regression ◽  
Effect Regression ◽  
Macroeconomic Indicators

The purpose of this study is to find the most important factors affecting profitability of the top 10 commercial banks in ASEAN over the period 2012 to 2016. Panel data regression employed to identify factors affecting the banks profit. The data consist of macroeconomic indicators and bank financial statements which are collected from various sources. Data analysis was statistically conducted by using Eviews-9 statistical software based upon a fixed effect regression models. The study concluded that bank profitability (ROA) is significantly and positively affected by equity to asset (ETA), but it is not significantly affected by loan to deposit (LTD), investment to asset (ITA) and gross domestic product (GDP), eventhough these three variables have a positive patterns of influence on ROA. Approximately 87.03% of the bank’s profitability (ROA) explained by Loan to Deposit (LTD), equity to asset (ETA), investment to asset (ITA) and gross domestic product (GDP).

scholarly journals The commercial banks’ credit risk efficiency: Empirical evidence from Kosovo

2021 ◽  
Vol 8 (2) ◽  
pp. 240-254
Author(s):  
Arbana Sahiti ◽  
Arben Sahiti
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Commercial Banks ◽  
Capital Adequacy ◽  
Data Envelopment Analysis Model ◽  
Negative Consequences ◽  
Analysis Model ◽  
Tobit Regression ◽  
Credit Risk Management ◽  
Positive Effects

Commercial banks' credit risk management is a function that focuses on events that may affect the achievement of objectives. Improper management will result in negative consequences or results. Therefore, banks usually pay more attention to events with a higher probability and impact of a direct loss of revenue and capital than events that may result in positive effects. This research adopts secondary data and seeks to analyze credit risk management of commercial banks in Kosovo through a developed DEA (Data Envelopment Analysis) model. The study covers seven commercial banks in Kosovo for the period 2008-2016 and uses Tobit regression to determine credit risk efficiency. The estimation results show a statistically significant positive relationship between bank efficiency, capital adequacy, and loans.  Moreover, the study found that banks' efficiency factors, including profitability, deposits, costs, banks size, GDP growth, and inflation, are not statistically significant.

scholarly journals Determinants of Credit Risk: Evidence From Commercial Banks in Malaysia

2021 ◽  
Vol 16 (1) ◽  
pp. 134-143
Author(s):  
Noor Hafizha Muhamad Yusuf ◽  
Mohamad Shukery Mohamad Shamsudin ◽  
Wan Mohd Yaseer Mohd Abdoh ◽  
Noor Sharida Badri Shah ◽  
Rozihanim Shekh Zain
Keyword(s):  
Credit Risk ◽  
Significant Relationship ◽  
Commercial Banks ◽  
Fe Model ◽  
Panel Regression ◽  
Return On Equity ◽  
Factors Affecting ◽  
Independent Variables ◽  
Interest Income ◽  
The Relationship

The purpose of this study is to determine the relationship between microeconomic factors with credit risk among selected commercial banks in Malaysia. For this purpose, a sample of seven out of 27 commercial banks in Malaysia was selected and the microeconomic factors affecting credit risk with six measurements of return on asset (ROA), bank size, leverage, the ratio of capital, interest income and return on equity (ROE) were examined by applying Panel Regression Fixed Effect (FE) Model for a period 20 years from 1998 to 2017. The scope of the study covers seven selected commercial banks in Malaysia namely: Affin Bank Berhad, Alliance Bank Malaysia Berhad, CIMB Bank Berhad, Hong Leong Bank Berhad, Malayan Banking Berhad, Public Bank Berhad and RHB Bank Berhad. This study is using credit risk proxy by non-performing loan for dependent variable while independent variables that have been selected were returned on asset (ROA), bank size, leverage, the ratio of capital, interest income and return on equity (ROE). The findings of the study managed to reject the null hypothesis for return on asset, bank size, leverage, interest income and return on equity which indicates the five microeconomic variables give a significant relationship with credit risk. There are positive relationships between leverage, interest income and return on equity with credit risk while return on asset, bank size and ratio of capital are negatively related to credit risk. However, the study fails to find any significant relationship between the ratio of capital and credit risk for commercial banks in Malaysia.

scholarly journals Effects of Bank Capital on Profitability and Credit Risk: The Case of Vietnam's Commercial Banks

2016 ◽  
Vol 23 (04) ◽  
pp. 117-137
Author(s):  
Vinh Nguyen Thi Hong ◽  
Thao Le Phan Thi Dieu
Keyword(s):  
Moral Hazard ◽  
Credit Risk ◽  
Method Of Moments ◽  
Commercial Banks ◽  
Generalized Method Of Moments ◽  
Bank Risk ◽  
Bank Capital ◽  
Negatively Associated

This paper seeks to examine the effects of bank capital on profitability and credit risk of 30 Vietnam’s commercial banks from 2007 to 2014. Using the system generalized method of moments (GMM), the paper conducts several tests on the moral hazard and regulatory hypotheses on the relationships among bank capital, profitability, and credit risk. With no regard to other determinants, its results indicate that the effects are evident, i.e. bank risk is found to impact differently on bank returns, and it is also negatively associated with credit risk of commercial banks in Vietnam.

scholarly journals Impact of credit risk (NPLs) and capital on liquidity risk of Malaysian banks

2017 ◽  
Author(s):  
Yaman Hajja
Keyword(s):  
Credit Risk ◽  
Commercial Banks ◽  
Positive Relationship ◽  
Liquidity Risk ◽  
Dynamic Panel Data ◽  
Bank Capital ◽  
Dynamic Panel ◽  
Macroeconomic Variables ◽  
The Impact ◽  
The Relationship

We investigate the relationship between bank liquidity risk and credit risk and the impact of bank capital on liquidity risk. Using 19 Malaysian commercial banks data over 2002-2011 and applying dynamic panel data GMM estimation after controlling for bank-specific and macroeconomic variables, empirical results document a positive relationship between liquidity and credit risk and a non-linear U-shaped relationship between bank capital and liquidity risk.

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