Analyzing Factors Affecting Risk Management of Commercial Banks in Ho Chi Minh City – Vietnam

Abstract

Credit activities are considered as the most professional competences of commercial banks in Vietnam, which bring nearly 80–90% of profits to banks. However, credit risk at high level will affect directly to commercial banks’ activities. Facing to challenges of international integration and improving competitive competence of commercial banks, risk management becomes very vital toward administration board of commercial banks in Ho Chi Minh City (HCMC), Vietnam. In this study, the author used quantitative method to investigate factors affecting to risk management in four commercial banks HCMC from evaluation of 120 managers and vice managers of branches in these banks. The findings of the survey presented that Clients’ ability and Qualification of employees affecting most to risk management of Commercial Banks. Therefore, State Bank and governmental organizations have to have strict supervision and control toward commercial banks to limit risks. On the other hands, commercial bank itself has to improve risk management procedure, expertise of staff, limiting financial risk at low level as well as reduce risks for clients and the bank itself in financial service market in Vietnam.