• Asia-Pacific Journal of Business
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• v.5 no.2
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• pp.37-50
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• 2014

Banking institutions have been facing variety of difficulties but the major cause of serious banking problems relates to lax credit standards for borrowers and counterparties, poor portfolio risk management, or a lack of attention to changes in economic or other circumstances that can lead to deterioration in the credit standing of a bank's counterparties. Although credit risk is an important factor that financial institutions should cope with, but the determinants of measuring credit risk have been studied less. This paper attempts to explore the determinants of credit risk measurement and to identify the factors that contribute to credit risk measurement practices in Indian banks and to compare credit risk measurement practices followed by Indian public and private sector banks, the empirical study has been conducted and views of employees of various banks have been tested using statistical tools. This study explored the phenomenon from different perspectives and revealed that single-name credit risk measurement and portfolio credit risk measurement are the key components that contribute to credit risk measurement in Indian banks. From the descriptive and analytical results, it can be concluded that Indian banks efficiently measure credit risk. The results also indicate that there is a significant difference between the Indian public and private sector banks in single-name credit risk measurement while, these banks do not significantly differ in portfolio credit risk measurement aspect.

• East Asian Economic Review
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• v.20 no.3
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• pp.391-423
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• 2016

By examining the relationship between private credit growth and the possibility of credit risk while focusing on international capital in 21 countries over the period 2000:1Q-2015:2Q, this paper shows that the impact of private credit growth on credit risk is apparent under the high ratio of capital inflows, and its impact on credit risk in the seven Asian countries is even stronger. And the possibility of credit risk caused by private credit is mainly coming from portfolio inflows rather than direct inflows. Finally, portfolio inflows strengthen the positive relationship between credit excess and credit risk in Asian countries, and this trend is seen more in these after the global financial crisis. Taken together, the stronger positive relationship between credit excess and credit risk can be strengthen under the massive portfolio inflows in particular in the seven Asian countries such as Hong Kong, India, Indonesia, Korea, Malaysia, Singapore, and Thailand.

• Information Systems Review
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• v.4 no.2
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• pp.361-376
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• 2002

This paper proposes a framework for integrated credit risk management system in domestic bank financial institutions. Credit evaluation system, loan processing system, credit monitoring system, and credit risk management system are integrated for efficient and effective risk-adjusted performance management in this framework. Risk exposures, not only for each credit, but also for bank's whole credit portfolio need to be measured and analyzed through the concept of Value-at-Risk (VaR). The effects of changes in credit ratings of individual loaners on bank's credit risk exposure are also considered. We tried to model this integrated credit risk management system by using object-oriented modeling language, UML.

• Journal of the Korean Society of Clothing and Textiles
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• v.33 no.11
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• pp.1707-1718
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• 2009

This study examines the effects of perceived risks on purchase decision behavior among Internet fashion consumers. The study survey used a self-administered questionnaire and a total data of 244 responses were used for analysis. The results of this study are as follows: First, the perceived risks consist of 6 factors, quality risk, counterfeit product risk, credit dealing risk, social/psychological risk, size and appearance risk, and delivery risk. The purchase decision behavior consist of 3 factors, delay of purchase decision, website switching, and offline conversion behavior. Second, purchase time positively affected the quality risk and credit dealing risk. Purchase frequency negatively affected the quality risk and credit dealing risk. Third, the quality risk, size and appearance risk, counterfeit product risk, and credit dealing risk positively affected the delay of purchase decisions. Quality risk and counterfeit product risk positively affected website switching. In addition, quality risk, social/psychological risk, and credit dealing risk positively affected the offline conversion behavior. Fourth, credit dealing risk negatively affected a short term purchase intention and the delivery risk negatively affected a long term purchase intention. The social/psychological risk and credit dealing risk negatively affected the repurchase intention.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.7
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• pp.195-201
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• 2021

This study aims to assess the impact of ownership structure of commercial banks on bank credit risk in Vietnam. The authors used the unbalanced table data of 28 commercial banks in the period from 2004 to 2020 with 439 observations. The ratio of loan loss provisioning to loans (CR) is selected as a dependent variable representing credit risk at commercial banks. The regression methods used include: least squares method (OLS), fixed-effect model (FEM), random-effect model (REM) and general least squares method (GLS). The results reveal that, with interaction variable between the ratio of equity to total assets and foreign ownership, the national GDP annual growth rate is negatively associated with credit risk. With the ratio of equity to total assets, the interaction variable between equity and state ownership, and bank size have a significant positive impact on credit risk. In addition, inflation has negligible impact on the credit risk of commercial banks in Vietnam over the research period. The findings of this study suggest that, if foreign-owned banks increase equity capital, there will be a stronger impact on reducing credit risk than other banks. On the other hand, when state-owned commercial banks in Vietnam increase equity, they will have higher credit risk.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.8
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• pp.89-97
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• 2022

The e-commerce market faces significant credit risks due to the complexity of the industry and information asymmetries. Therefore, credit risk has started to stymie the growth of e-commerce. However, there is no reliable system for evaluating the creditworthiness of e-commerce companies. Therefore, this paper constructs a credit risk evaluation index system that comprehensively considers the online and offline behavior of online retail enterprises, including 15 indicators that reflect online credit risk and 15 indicators that reflect offline credit risk. This paper establishes an integration method based on a fuzzy integral support vector machine, which takes the factor analysis results of the credit risk evaluation index system of online retail enterprises as the input and the credit risk evaluation results of online retail enterprises as the output. The classification results of each sub-classifier and the importance of each sub-classifier decision to the final decision have been taken into account in this method. Select the sample data of 1500 online retail loan customers from a bank to test the model. The empirical results demonstrate that the proposed method outperforms a single SVM and traditional SVMs aggregation technique via majority voting in terms of classification accuracy, which provides a basis for banks to establish a reliable evaluation system.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.44
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• pp.85-107
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• 2009

L/C allows the exporter to have a bank's payment undertaking against shipping documents required by L/C. This means that the exporter can take export proceeds from a L/C issuing bank regardless of importer's payments and therefore the L/C better mitigate importer's credit risk compared to remittance and collections. Recently the use of L/C has been on down trend in line with increasing use of T/T, causing a big change of payment system. This tells that the payment method change in Korea is positive as the change also happens same in developed countries. This however gives more buyer's credit risk to exporters and therefore a systematic solution to this negative effect is required. In Korea, export credit insurance has been widely used to cover the buyer's credit risk. But the export credit insurance is limited because of lack of government's financial support and strict evaluation of buyer and exporter. Now Korea is ranked 10the largest trading country and therefore the exporters shall find another source for credit risk protection elsewhere. And as such this paper suggest International Factoring as a tool for the credit risk protection. The International Factoring gives advantages to the exporter in terms of credit protection and advances by purchasing account receivables on a without recourse basis.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.949-958
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• 2021

This study aims to develop a theoretical model in order to determine factors affecting consumer intention to use credit cards by combining Theory of perceived risk and Technology acceptance model. Despite of perspective of consequences in prior studies on related research fields, this study focuses on the sources of perceived risk, including transaction, payment and credit risks, which are proposed and measured in a preliminary research. A measurement model and a structural model with the presence of perceived risk in sources are tested in a formal research with data collected from 538 bank customers. An analysis results show that payment risk, usefulness, transaction risk, ease of use, and credit risk influence significantly Vietnamese consumers' intention to use credit cards in decreasing order of influence. These factors account for 64.6% of the variation in intended use. All three dimensions of perceived risk have a negative effect on the intention to use, with the total impact greater than the level of influence of the other two factors of usefulness and ease of use. These findings can be beneficial to banks in enacting policies to attract more consumers and to allocate resources for improving their credit card business.

• Journal of Distribution Science
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• v.21 no.11
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• pp.67-75
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• 2023

Purpose: The study is focused on understanding consumer behaviour related to credit card use in retail payment or identifying factors that influence risk perception. Research design, data and methodology: Based on data collecting from structured self-administered questionnaires of 247 Vietnamese bank account payers, this study uses the Cronbach alpha analysis, the factor analyses, the structural equation modeling to assess the research's measurement model and structural model with the presence of knowledge, propensity to trust, self-efficacy, risk perception, intended use and their complex, intertwined relationships. Results: The results reveal that customer's perceived risk, which is affected by their self-efficacy and propensity to trust, negatively impact on their intended use of credit cards in retail payment. However, there is no evidence of the significant influence of consumer knowledge on how they assess potential losses of credit card. Conclusions: These findings provide a better understanding of consumer risk perception, its antecedents and consequence in a direction of credit card adoption. Bank managers or marketers should focus on increasing the information about credit cards and issues related to credit card use in retail payment, promoting mechanisms to encourage customers to participate in the credit card experience.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.7
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• pp.59-72
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• 2020

This paper examines whether lending structure can lower credit risk by employing econometric techniques of panel data for the Vietnamese banking system at the bank level used by economic sectors from 2011 to 2016. New light is being shed on assessing the impact of each industry's debt outstanding on credit risk. Adopting findings from previous studies, we assess credit risk from two different sources, including loan loss provision and non-performing loan. Moreover, we also focus on observing lending structure in many different aspects, from concentrative levels to the short-term and long-term stability levels of lending structure. The Generalized Method of Moments (GMM) estimator was applied to analyze the relationship between concentration and banking risks. In general, the results show that lending concentration may decrease credit risk. It is interesting to observe that the Vietnamese commercial bank lending portfolios have, on average, higher levels of diversity across different sectors. In particular, the increase in hotel and restaurant lending contributes to decrease credit risk while the lending portfolios of banks in agriculture, electricity, gas and water increase credit risk. This study suggests the need for further analysis and research about portfolio risks in lending activities for maintaining efficiency and stability in the commercial banking system.