Factors Influencing the Credit Approval Process at Kien Long Bank

Abstract

Credit granting is a normal activity of commercial banks in general and Kien Long Bank in particular. Through this activity, the author wants to study the factors affecting credit granting activities of commercial banks in general and Kien Long Bank in particular. The objective of the study is to determine the factors affecting the credit performance of Kien Long Bank. Based on the research database of 30 Kien Long Bank branches with the number of over 263 questionnaires at the branches. With the above research sample, the author chooses the ordinary least squares method (OLS) to test the influence of macro factors and internal factors of banks on credit activities. Through the factors affecting the credit granting process, the author makes some recommendations for Vietnamese commercial banks and Kien Long Bank, including provisioning rate management, controlling credit growth rate, maintaining profitability growth rate, and a reasonable strategy to increase the bank's size in order to ensure safe credit provision.