The Research On Credit Risk Management In Vietnam Commercial Bank

After Barings Bank collapsed that occurred in the 1990s, the Asian financial crisis in 1997 and the subprime mortgage crisis of The United State caused by the global financial crisis and the series of major financial risk of the event in 2007, people have to research the new situation of commercial bank's credit risk management in the deep reflection and thus develop their concepts and technologies.After Vietnam economy's reforming and opening up, especially the accession to the World Trade Organization in 2007, the amount of commercial bank in Vietnam has developed rapidly. Until now, there are 5 state-owned,37 joint stock,5 joint venture,5 foreign investment commercial banks and 48 branches of foreign bank in Vietnam. The expanding of the scale in these commercial banks will also enlarge their credit line. Moreover, the enlargement of bank credit will bring more profits and a lot of potential risks with this as well. Thus a primary task of every commercial bank in Vietnam is to improve the bank's credit risk management system.This research herein because of understanding Viet Nam credit risk management in commercial banks, will discuss on the optimization of the strategy of commercial bank's credit risk management system. I will first study the current situation and reason of Vietnamese commercial bank's credit risks from the general theories of commercial bank's credit risk and risk management. I then find out the situation of credit risk management and its weakness, and contrast with BaselⅢagreement. Finally, I will based on the credit risks management's theory and experience of developed countries, the basis of the Basel agreement, and the economic conditions of Vietnam, put forward a proposal for optimizing the credit risk management of Vietnamese commercial bank (For instance:reducing government's interference, changing government's function, strengthening the supervision mechanism of the commercial bank and using the advanced science method of credit risks management, etc..).