Credit risk management at Ho Chi Minh City Development Joint Stock Commercial Bank Tien Giang Branch
DOI:
https://doi.org/10.63783/dla.2025.015Keywords:
credit risk, credit risk managementAbstract
Currently, the trend of globalization is going strong and has become an inevitable trend for any economy. The issue of integration brings many difficulties and challenges. The higher the diversification of banking and financial products, the greater the risk level. Credit activities have been and are one of the main business activities that bring main income to commercial banks in Vietnam in general. However, credit is a trade-off between risk and profitability in banking business. Good credit risk management means optimizing the trade-off between credit risk and profitability from bank credit activities. From the actual credit activities of Ho Chi Minh City Development Joint Stock Commercial Bank - Tien Giang Branch (referred to as HDBank Tien Giang) in recent times, it also shows that credit risks in lending have not been effectively controlled. The issue of risk and credit risk management of commercial banks in Vietnam becomes urgent when the number of bad debts is increasing and difficult to control. Risk management is the best way that all credit institutions need to do to avoid losing capital. Therefore, there is an urgent requirement that credit risks must be strictly managed and controlled to minimize possible risks, minimize losses arising from credit risks and increase profits for banks, contributing to improving the bank's reputation and creating advantages in competition.
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References
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Currently, the trend of globalization is going strong and has become an inevitable trend for any economy. The issue of integration brings many difficulties and challenges. The higher the diversification of banking and financial products, the greater the risk level. Credit activities have been and are one of the main business activities that bring main income to commercial banks in Vietnam in general. However, credit is a trade-off between risk and profitability in banking business. Good credit risk management means optimizing the trade-off between credit risk and profitability from bank credit activities. From the actual credit activities of Ho Chi Minh City Development Joint Stock Commercial Bank - Tien Giang Branch (referred to as HDBank Tien Giang) in recent times, it also shows that credit risks in lending have not been effectively controlled. The issue of risk and credit risk management of commercial banks in Vietnam becomes urgent when the number of bad debts is increasing and difficult to control. Risk management is the best way that all credit institutions need to do to avoid losing capital. Therefore, there is an urgent requirement that credit risks must be strictly managed and controlled to minimize possible risks, minimize losses arising from credit risks and increase profits for banks, contributing to improving the bank's reputation and creating advantages in competition.