• The Journal of Asian Finance, Economics and Business
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• v.8 no.1
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• pp.873-880
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• 2021

The purpose of this study is to investigate the impact of internal control on credit risk of joint stock commercial banks in Vietnam from 2007 to 2018. Furthermore, we specify bank-specific characteristics and macroeconomic conditions, and analyze how these factors affect credit risk of banks: the number of board members, the number of board members with banking or finance background as ratio of total board members, loans to total assets ratio, loans to deposit ratio, the number of days between the year-end and the publication of the financial statements, and the use of top four auditing firms proxy for five elements of internal control. By using the dataset of 30 Vietnamese joint stock commercial banks and Bayesian linear regression via Random-walk Metropolis Hastings algorithm, the results of this study show that five elements of internal control have a impact on bank credit risk, namely, control environment, risk assessment, control activities, information and communication, and monitoring activities. For factors of banks' characteristics, bank size and financial leverage have a negative impact on banks' credit risk, and bank age has a positive effect. For macroeconomic factors, inflation has a positive impact and economic growth has a negative impact on banks' credit risk.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.15
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• pp.239-261
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• 2001

There are many kinds of risk in int'l trade by internet network, such as credit risk, mercantile risk, contingency risk, exchange risk, physical risk and the risk on internet network. Especially, risk management against credit risk and the risk on internet network are very important. The former is conventional but more important these days. The latter is a new risk that has been incurred owing to the int'l trade by internet network. The system of risk management against the former are firstly, to surely research credit of counterpart by internet, secondly, to certify the entity by password or fingerprint, thirdly, to pay the price under a letter of credit, fourthly, to use the system of int'l trade such as bolero, trade card, finally, to use the authority of electronic trade services. The system of risk management against the latter are firstly, to install the firewall on the own computer network, secondly, to entrust the management own computer network to the network security services firm, thirdly, to electronically communicate with counterpart through the certification authority, finally, to insure against the own network risk with the security insurance company.

• Journal of Family Resource Management and Policy Review
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• v.9 no.2
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• pp.145-161
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• 2005

This study was to examine whether the hedonic and utilitarian shopping values were expressed in shopping experience among the undergraduates and how the consumers with different shopping values vary in the perception of credit cards' benefit and risk. The 215 undergraduates in Seoul were surveyed. The results indicated that undergraduates were divided into hedonic shoppers and utilitarian shoppers according to their shopping value and that the perception of credit cards' benefit and risk was explained by the four factors including the increased cost, the removing the immediate need for money, the additional service and benefits, and the overspending and credit crime. The overspending and credit crime as one of the risk factors was affected by the types of shopping values.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.75-81
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• 2020

This study aims to empirically test the effect of liquidity and adequacy on bank performance through interest rate risk and credit risk. Capital adequacy and liquidity are variables that can affect the ups and downs of opinion, where the bank's performance in this study is the dependent variable. Good credit distribution can minimize the occurrence of defaults. This study uses banking companies in Indonesia that are listed on the Indonesian stock exchange, with a total number of 43 banking companies, this study however, uses only 30 companies ranging from years 2014 to 2019, primarily due to the availability of the limited data. The data analysis techniques used in this study is PLS-SEM with the WarpPLS application. The research results show that capital adequacy and liquidity has a positive effect on bank performance, interest rate risk and credit risk can mediate capital adequacy on bank performance, interest rate risk can mediate liquidity on bank performance, and interest rate risk has a positive effect on bank performance. However, credit risk can't mediate liquidity on bank performance and credit risk does not have a positive effect on bank performance. This is in line with the commercial loan theory, shiftability theory and the doctrine of anticipated income, which explains how best to give credit, both in longer and the shorter term.

• The Journal of Bigdata
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• v.7 no.2
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• pp.225-234
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• 2022

In this paper, we study the recent changes in the credit risk interconnectedness in Korea. Using the CDS spread data from November 2015 to August 2022, we estimate the network structure of sovereign and corporate credit risk. The results show that sovereign and corporate credit risks are interconnected significantly, particularly with respect to the banking sector where FX-related transactions are made. Since 2022 when the monetary policy has become contractionary, such credit risk interconnectedness seems to be strengthened because of greater common exposure.

• The Journal of the Korea Contents Association
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• v.16 no.3
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• pp.81-90
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• 2016

This study aims to investigate the association between stock performance and credit ratings, and credit rating changes using a sample of 1,691 KRX firm-years that acquire equity in the form of long-term bonds from 2002 to 2013. Previous U.S. literature is mixed with regard to the relation between credit ratings and stock price. On one hand, there is evidence of a positive relation between credit ratings and stock prices, an anomaly established in U.S. studies. On the other hand, the CAPM model suggests a negative relation between stock prices and credit ratings, implying that investors expect financial rewards for bearing additional risk. To our knowledge, we are the first to examine the relationship between stock price and default risk proxied by credit ratings in period t+1. We find a negative (positive) relation between credit ratings (risk) in period t+1 and stock returns in period t, suggesting that credit rating agencies do not consider stock returns as a metric with the potential to influence default risk. Our results suggest that market participants may prefer firms with higher credit risk because of expected higher returns.

• KDI Journal of Economic Policy
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• v.44 no.3
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• pp.1-26
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• 2022

This paper analyzes the effects of the cut in the legal maximum interest rate (from 27.4% to 24%) that occurred in February of 2018 on loan interest rates, the default rates, and the loan approval rate of borrowers in the non-banking sector. We use the difference-in-difference identification strategy to estimate the effect of the cut in the legal maximum interest rate using micro-level data from a major credit-rating company. The legal maximum rate cut significantly lowers the loan interest rate and default rate of low-credit borrowers (i.e., high-credit-risk borrowers) in the non-banking sector. However, this effect is limited to borrowers who have not been excluded from the market despite the legal maximum interest rate cut. The loan approval rate of low-credit borrowers decreased significantly after the legal maximum interest rate cut. Meanwhile, the loan approval rate of high-credit and medium-credit (i.e., low credit risk and medium credit risk) borrowers increased. This implies that financial institutions in the non-banking sector should reduce the loan supply to low-credit borrowers who are no longer profitable while increasing the loan supply to high- and medium-credit borrowers.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.373-385
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• 2021

The objective of the study is to empirically investigate the impact of bank capital on the lending behavior of Vietnamese commercial banks from 2007 to 2019. Lending behavior is captured by two dimensions, including the quantity (loan growth) and quality (credit risk) of loans. Instead of investigating loan growth and credit risk separately, we combine these two aspects in our study and further develop the interaction term between capital buffers and credit risk to capture the asymmetric impact. We apply the dynamic model (regressed by the generalized method of moments) and the static models (regressed using the fixed effects, random effects, and the pooled regression approach) to perform regressions. The results show that banks with higher capital ratios tend to expand lending more, while the risk of credit portfolios is controlled at lower levels at these banks. Further analysis reveals that credit risk mitigates some aspects of the relationship between bank capital and loan expansion. The patterns remain robust across alternative measures and econometric techniques. The study provides insightful policy implications for bank managers and regulators in the process of upgrading capital resources to ensure the safety and soundness of the banking industry in an emerging country.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.5
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• pp.305-311
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• 2022

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is projected to provide several chances for Vietnam's banking industry to expand into the international market. This study examines the influence of foreign ownership on credit risk in Vietnamese commercial banks before the context of participation in the CPTPP. Using a sample of 28 commercial banks between 2009 and 2020, we find that foreign ownership has a negative relationship with bank credit risk. The regression methods used include the least-squares method, fixed-effects model, random effects model, and general least squares method. The research model adds interactive variables, which will help to reflect the role of intermediary factors more accurately such as listing on the stock market, capital ratio to the relationship between foreign ownership and bank credit risk. The test results reveal that increasing the foreign ownership ratio has a bigger impact on reducing credit risk for listed banks and banks with low capital than for other commercial banks. The government should flexibly adjust the foreign ownership ratio according to the capital size and role of each bank so that it can make good use of investment capital from abroad when Vietnam joins the CPTPP.

• Journal of Korea Society of Digital Industry and Information Management
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• v.8 no.3
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• pp.147-156
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• 2012

Most people in our society use credit card instead of cash or check, so credit card is very important economic method. Credit card supposed to be safe, but hackers hack credit card for illegal deal. Also hackers make fake credit card and issue fake credit card to other people. In this thesis it will study and analyze damage case for safe credit card deal. It will use safe credit card system to insert variety of information and data of using pattern in artificial intelligence network, so print out the possibility of risk and monitor the risk of credit card user's deal pattern, so if one of user's pattern is different than normal pattern, it will pop up message in consultant's screen. This thesis will study and suggest way of prevent from illegal deal and user friendly credit card checking system.