Email this article LENDING OPERATION AND CREDIT RISK MANAGEMENT PRACTICES IN PEOPLE’S CREDIT FUNDS
About this article
Published: 19/08/18Authors
Can Thuy Lien
, Banking Academy
Abstract
Considering that there have been some peoples’ credit funds violating the regulation of the State Bank and CoopBank, the situation was found to be at risk. In this context, a research was conducted to make people understand more about peoples’ credit funds’ profile in terms of lending operation and credit risk management practices. The research used analysis, descriptive, and quantitative method by exploiting both primary data using a questionnaire and secondary data from CoopBank and People’s Credit Funds. The results showed that the respondents ‘strongly agree”and“agree” that they “strictly follow the State Bank’s credit limits and prudential ratios in the operation.” However, the secondary data reflected that the required bad debt ratio and lending to deposit ratio are not closely met in a very small number of people’s credit funds. Therefore, the people’s credit funds themselves, accompanied by the State Bank and CoopBank, must seriously reevaluate the credit risk management to improve their credit operation for sustainable development.
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References
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