Factors affecting the credit risk of corporate customers at the BIDV - Tra Vinh Province Branch

This study identifies and measures the impacts of factors affecting the credit risk of corporate customers at the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) - Tra Vinh Province Branch. The study’s Binary logistic regression model shows that the credit risk of BIDV - Tra Vinh Province Branch’s corporate customers is affected by seven factors. These factors, listed in the descending order of impacting level, are: borrowing history, loan monitoring, business rating, experience of credit officer, return on assets ratio, liabilities to equity ratio, and type of business. It implies that it is necessary for BIDV - Tra Vinh Province Branch to pay attention to these factors to assess the debt repayment ability of small and medium-sized enterprises. However, as these factors are often closely related to each other, the bank needs to consider other criteria such as the credit balance to total assets ratio, the non-performing loan to total outstanding loan ratio, the overdue debt ratio, and the risk compensation ability.