THE IMPACT OF CREADIT RISK MANAGEMENT ON THE FINANCIAL RESULTS OF COMMERCIAL BANK IN VIETNAM

THE STATE BANK OF VIETNAM MINISTRY OF EDUCATION AND TRAINING BANKING UNIVERSITY AT HO CHI MINH CITY - HOANG THUY LINH THE IMPACT OF CREDIT RISK MANAGEMENT ON THE FINANCIAL RESULTS OF COMMERCIAL BANK IN VIETNAM THESIS PROPOSAL FINANCE AND BANKING CODE: 7340201 ADIVISOR by NGUYEN DUY LINH, PhD THE STATE BANK OF VIETNAM MINISTRY OF EDUCATION AND TRAINING BANKING UNIVERSITY AT HO CHI MINH CITY - HOANG THUY LINH THE IMPACT OF CREDIT RISK MANAGEMENT ON THE FINANCIAL RESULTS OF COMMERCIAL BANK IN VIETNAM THESIS PROPOSAL FINANCE AND BANKING CODE: 7340201 ADIVISOR by NGUYEN DUY LINH, PhD THE IMPACT OF CREDIT RISK MANAGEMENT ON THE FINANCIAL RESULTS OF COMMERCIAL BANK IN VIETNAM APPROVED BY: Advisor APPROVED BY: Committee Nguyen Duy Linh, PhD THESIS COMMITTEE DECLARATION I indicate that the thesis "The impact of creadit risk management on the financial results of commercial bank in Vietnam" is the result of my independent studies Except for the references to other research works mentioned in the thesis, the thesis conclusions are genuine and have never been published in any other research work ACKNOWLEDGE This thesis is the author's own work, the research findings are accurate, so there is no previously published material or content created by others in the thesis except for the mentioned references During my thesis period, I received a lot of support and encouragement from the lot of people Without their valuable feedback, support, counsel, and advice, this thesis would not have been completed First and foremost, I would like to express my appreciation to my advisor – PhD Nguyen Duy Linh – Lecturer at Banking University of Ho Chi Minh City , for his sincere and unreserved support, valuable guidance, and recommendation Thanks for his efforts and extensive knowledge to make my research a reality; his suggestions, guidance, and advice are always admired and greatly contribute to the thesis' success I would also like to express my gratitude to the professors and lecturers at the University of Banking for their support during my studies The experience and skills that I've gained have benefited me in completing this thesis Last but not least, my family has been the most supportive Words fail me whenever it comes to expressing my gratitude for my parents' unending affection To all of the above, as well as so many others, I simply want to convey my gratefulness for all of your encouragement, support, and love ABSTRACT In the current economic climate, one of the key factors determining the existence and growth of commercial banks in Vietnam is the ability to manage risks, especially credit risks, in a comprehensive and systematic manner Credit risk is often difficult to manage, resulting in capital and income losses for the bank While credit risk prevention and limitation is a difficult and complicated problem, if done correctly, it can benefit the bank in a number of ways, including cost savings, increased income, capital maintenance concept for commercial banks, increased consumer and investor trust, money to grow the market, and improved credibility, position, brand, and profit margins The purpose of this thesis is to contribute to the improvement of risk management efficiency and, as a result, the financial results of commercial banks in Vietnam After reviewing previous research, the author decided to use STATA 14.0 software to estimate the effect of risk management variables such as NonPerforming Loan (NPL), Capital Adequacy Ratio (CAR), Bank Size (SIZE), Loanto-Deposit Ratio (LD), Cost-to-Income Ratio (CI), Gross Domestic Product (GDP) and Inflation rate (INF) on financial performance factors such as Return On Asset (ROA) and Return On Equity (ROE) The results of previous empirical studies show that an increase in credit risk variables such as Non-performing loan and Cost-to-income have a negative effect on the financial performance of commercial banks On the other hand, the increase of Capital Adequacy Ratio, Bank size and Loan-to-deposit Ratio have a positive impact on the financial results of commercial banks in Vietnam In addition, the research results show that social variables such as Gross Domestic Product and Inflation Rate have an impact on financial results of commercial banks in Vietnam CONTENTS LIST OF CHART i LIST OF TABLE i LIST OF PICTURE i LIST OF SPORTENED WORDS ii CHAPTER 1: OVERVIEW OF THESIS 1.1 Introduction 1.1.1 Research background 1.1.2 Research issue and the urgency of the topic 1.2 Aim of study and research questions 1.2.1 Aim of study 1.2.2 Research question 1.3 Object and scope of the study 1.3.1 Object of study 1.3.2 Scope of study 1.4 Research method 1.5 Meaning of topic 1.5.1 Theoretically 1.5.2 In term of method 1.6 Proposed thesis structure CONCLUSION CHAPTER CHAPTER 2: THEORETICAL BASIS OF THE IMPACT OF CREADIT RISK MANAGEMENT ON THE FINANCIAL RESULTS OF COMMERCIAL BANK IN VIETNAM 10 2.1 Credit risk management 10 2.1.1 Theoretical basis for credit risk and credit risk management 10 2.1.2 Measurements represent credit risk management 12 2.2 Theoretical basis of financial results of commercial banks 16 2.2.1 2.2.2 Definition of financial result .16 Theoretical basis of macro factors affecting the financial results of commercial banks 17 2.2.3 Theoretical basis of financial performance of commercial banks 17 CONCLUSION CHAPTER 20 CHAPTER 3: DATA AND METHODOLOGY 21 3.1 Research data 21 3.1.1 Research process 21 3.1.2 Research sample 22 3.2 Research model and hypothesis 23 3.2.1 3.2.2 Research model 23 Description of variables and research hypotheses used in the model 24 3.3 Analysis of descriptive statistics and Correlation 26 CONCLUSION CHAPTER 34 CHAPTER 4: METHODS SELECTION RESULTS FOR THESIS MODEL 35 4.1 Result of method selection of model 35 4.2 Result of method selection of model 36 CONCLUSION CHAPTER 37 CHAPTER 5: THE RESULTS ON THE IMPACT OF CREADIT RISK MANAGEMENT ON THE FINANCIAL RESULTS OF COMMERCIAL BANK IN VIETNAM 38 5.1 Regression results (Model 1) 38 5.2 Regression results (Model 2) 40 CONCLUSION CHAPTER 43 CHAPTER 6: CONCLUSION AND SOLUTION TO INCREASE THE FINANCIAL RESULTS OF COMMERCIAL BANKS IN VIETNAM 44 6.1 Conclusions 44 6.2 Solutions to increase financial results of commercial banks in Vietnam 44 6.2.1 Group of suggestions to improve financial results .44 6.2.2 Group of recommendations to manage credit risk .46 6.3 Limitations of the topic and the next research direction 47 CONCLUSION 48 REFERENCE 49 APPENDIX 57 APPENDIX A: DESCRIPTIVE STATISTIC AND CORRELATION 57 APPENDIX B: RESULT OF POOLED OLS, FEM, REM AND GLS 59 APPENDIX C: Hausman test in each model 63 APPENDIX D: TESTING ERRORS OF ESTIMATED MODELS 64 APPENDIX E: DATA 67 LIST OF CHART Chart The average value of ROA fluctuation from 2016 – 2020 28 Chart The average value of ROE fluctuation from 2016 – 2020 28 Chart 3 The average value of NPL fluctuation from 2016 – 2020 29 Chart The average value of CAR fluctuation from 2016 – 2020 29 Chart The average value of SIZE fluctuation from 2016 – 2020 30 Chart The average value of LD fluctuation from 2016 – 2020 30 Chart The average value of CI fluctuation from 2016 – 2020 31 Chart The average value of GDP fluctuation from 2016 – 2020 31 Chart The average value of INF fluctuation from 2016 – 2020 32 LIST OF TABLE Table Research Hypotheses and Expectations 12 Table Descriptive statistics 27 Table Correlation analysis 33 Table Fixed effect estimation results 35 Table Regression results by Robust method 39 LIST OF PICTURE Picture Research process 21 i APPENDIX C: Hausman test in each model Table C.1 Hausman test (Model 1) Source: Computation using STATA Table C.2 Hausman test (Model 2) Source: Computation using STATA 63 APPENDIX D: TESTING ERRORS OF ESTIMATED MODELS Table D.1 Wooldridge test (Model 1) Source: Computation using STATA Table D.2 Breusch-Pagan / Cook-Weisberg test (Model 1) Source: Computation using STATA Table D.3 VIF test (Model 1) Source: Computation using STATA 64 Table D.4 ROBUST FE test (Model 1) Source: Computation using STATA Table D.5 Wooldridge test (Model 2) Source: Computation using STATA Table D.6 Breusch-Pagan / Cook-Weisberg test (Model 2) Source: Computation using STATA 65 Table D.7 VIF test (Model 2) Source: Computation using STATA Table D.8 ROBUST FE test (Model 2) Source: Computation using STATA 66 0,86847 0,41981 0,0291 0,03221 0,98236 0,44519 0,06211 0,02668 0,006 0,0199 8,6479 0,21673 0,1404 9,00276 0,01856 0,00615 0,07974 2020 2016 0,04383 ACB BID 67 0,02796 0,0702 0,51608 0,8613 8,58378 0,0724 0,00536 0,21645 0,01686 2019 ACB 0,0354 0,07076 0,47831 0,82339 8,51764 0,06382 0,0073 0,24441 0,01674 2018 ACB 0,0352 0,06812 0,54353 0,7955 8,4538 0,05638 0,007 0,13213 0,00818 2017 ACB 0,02668 0,06211 0,61856 0,79163 8,36862 0,06018 0,0087 0,09423 0,00567 2016 ACB 0,03221 0,0291 0,49228 0,7008 8,06583 0,07658 0,0144 0,12542 0,01021 2020 ABB 0,02796 0,0702 0,51416 0,83228 8,01096 0,07647 0,0231 0,12759 0,01039 2019 ABB 0,0354 0,07076 0,57346 0,82115 7,95423 0,07632 0,0189 0,10408 0,00819 2018 ABB 0,0352 0,06812 0,59235 0,85608 7,92687 0,07241 0,0277 0,07989 0,00616 2017 ABB 0,02668 0,06211 0,57433 0,85636 7,87024 0,07877 0,0256 0,04175 0,00329 2016 ABB INF GDP CI LD SIZE CAR NPL ROE ROA Year Bank APPENDIX E: DATA 68 0,96932 0,46198 0,06812 0,0352 0,96599 0,49512 0,07076 0,0354 0,0114 0,0156 9,03944 0,11697 0,07839 9,06606 0,0073 0,00467 0,05823 2017 2018 0,05782 CTG CTG 0,02668 0,06211 0,48742 0,95551 8,97707 0,06358 0,0102 0,11218 0,00713 2016 CTG 0,03221 0,0291 0,61268 0,82383 7,78605 0,06367 0,027 0,04135 0,00266 2020 BVB 0,02796 0,0702 0,85181 0,54403 7,77686 0,05956 0,05217 0,02384 0,00147 2019 BVB 0,0354 0,07076 0,56425 0,65784 7,74725 0,06225 0,0398 0,02302 0,00153 2018 BVB 0,0352 0,06812 0,47606 0,68072 7,68896 0,07157 0,0375 0,04135 0,00348 2017 BVB 0,02668 0,06211 0,54407 0,58259 7,53518 0,09582 0,0127 0,0284 0,00272 2016 BVB 0,03221 0,0291 0,3536 0,9764 9,1809 0,05251 0,0174 0,0907 0,00481 2020 BID 0,02796 0,0702 0,35862 0,98657 9,17317 0,05212 0,01745 0,11008 0,0061 2019 BID 0,0354 0,07076 0,36232 0,99944 9,11828 0,04155 0,0169 0,13825 0,006 2018 BID 0,0352 0,06812 0,39737 1,02395 9,08001 0,04062 0,0162 0,14223 0,00629 2017 BID 69 8,36074 0,96647 0,44613 0,0702 0,02796 0,83526 0,44797 0,0291 0,03221 0,01365 0,0093 8,50396 0,19726 0,18811 0,08882 0,01805 0,01694 0,07741 2018 2019 2020 0,0354 0,07076 0,47048 0,82746 8,33457 0,07789 0,0153 0,19025 0,01579 HDB HDB HDB 0,0352 0,06812 0,54255 0,80363 8,27723 0,07795 0,0152 0,13242 0,01151 2017 HDB 0,02668 0,06211 0,60481 0,72556 8,17694 0,06615 0,0146 0,09198 0,00608 2016 HDB 0,03221 0,0291 0,54856 0,72211 8,2053 0,10484 0,0252 0,06363 0,00653 2020 EIB 0,02796 0,0702 0,602 0,76865 8,22411 0,094 0,01707 0,05499 0,00541 2019 EIB 0,0354 0,07076 0,65166 0,8072 8,1837 0,0975 0,0184 0,04438 0,00437 2018 EIB 0,0352 0,06812 0,57626 0,80906 8,17426 0,09541 0,0227 0,05774 0,00592 2017 EIB 0,02668 0,06211 0,60382 0,80937 8,10992 0,10441 0,0295 0,02297 0,0024 2016 EIB 0,03221 0,0291 0,35495 0,94156 9,12757 0,06367 0,0094 0,16107 0,01066 2020 CTG 0,02796 0,0702 0,38833 0,9654 9,09367 0,06235 0,01156 0,12251 0,00788 2019 CTG 70 0,79462 0,42359 0,06211 0,02668 0,77662 0,43262 0,06812 0,0352 0,0132 0,012 8,40868 0,10845 0,11791 8,49676 0,01125 0,01224 0,10376 2016 2017 0,09431 MBB MBB 0,03221 0,0291 0,59775 0,94904 8,38443 0,05873 0,0143 0,13083 0,00838 2020 LPB 0,02796 0,0702 0,61971 0,95413 8,30548 0,06226 0,01445 0,12721 0,00849 2019 LPB 0,0354 0,07076 0,62468 0,87665 8,24327 0,05826 0,0141 0,0941 0,00567 2018 LPB 0,0352 0,06812 0,55127 0,73021 8,21334 0,05741 0,0107 0,1458 0,00896 2017 LPB 0,02668 0,06211 0,52471 0,67982 8,15188 0,05873 0,0111 0,12756 0,00749 2016 LPB 0,03221 0,0291 0,87448 0,72446 7,75802 0,0684 0,0441 0,03224 0,00233 2020 KLB 0,02796 0,0702 0,86597 0,75552 7,70844 0,0742 0,01021 0,01785 0,00145 2019 KLB 0,0354 0,07076 0,73911 0,79577 7,62644 0,08864 0,0086 0,06183 0,00582 2018 KLB 0,0352 0,06812 0,71526 0,74833 7,57202 0,09515 0,0084 0,05679 0,00595 2017 KLB 0,02668 0,06211 0,73668 0,76319 7,4836 0,11047 0,0106 0,03597 0,00397 2016 KLB 71 0,78269 0,64269 0,07076 0,0354 0,82639 0,63001 0,0702 0,02796 0,0154 0,01975 7,8754 0,13978 0,14753 7,97629 0,00913 0,00862 0,05636 2018 2019 0,05239 NAB NAB 0,0352 0,06812 0,51173 0,78172 7,73592 0,06736 0,0195 0,06524 0,00492 2017 NAB 0,02668 0,06211 0,59714 0,63106 7,63197 0,08012 0,0294 0,00957 0,00077 2016 NAB 0,03221 0,0291 0,49926 0,742 8,24723 0,0955 0,0162 0,11918 0,01205 2020 MSB 0,02796 0,0702 0,53067 0,65675 8,19584 0,09469 0,02045 0,07021 0,00708 2019 MSB 0,0354 0,07076 0,61995 0,63384 8,13915 0,10031 0,0301 0,06283 0,00695 2018 MSB 0,0352 0,06812 0,63611 0,53497 8,05014 0,12226 0,0223 0,00889 0,00119 2017 MSB 0,02668 0,06211 0,49864 0,63203 7,96664 0,14686 0,0236 0,01029 0,00151 2016 MSB 0,03221 0,0291 0,38577 0,90564 8,69459 0,10121 0,0109 0,17178 0,01899 2020 MBB 0,02796 0,0702 0,39446 0,8631 8,61436 0,09693 0,01158 0,20229 0,02085 2019 MBB 0,0354 0,07076 0,44705 0,80019 8,5591 0,09432 0,0133 0,18114 0,01831 2018 MBB 72 0,88349 0,2908 0,0291 0,03221 0,83401 2,7922 0,06211 0,02668 0,0142 0,02468 8,18335 0,20274 0,03508 7,39488 0,02612 0,00494 0,11431 2020 2016 0,1408 OCB PGB 0,02796 0,0702 0,37036 0,89613 8,07247 0,09739 0,01842 0,2244 0,0354 0,07076 0,37275 0,79679 7,99984 0,088 0,02288 0,20018 0,01911 2018 2019 0,02368 OCB OCB 0,0352 0,06812 0,53086 0,76898 7,92583 0,07283 0,01794 0,13304 0,01103 2017 OCB 0,02668 0,06211 0,56274 0,83287 7,80492 0,0739 0,01754 0,08205 0,00606 2016 OCB 0,03221 0,0291 0,48502 0,49824 7,95231 0,04758 0,0151 0,00028 1,4E-05 2020 NVB 0,02796 0,0702 0,69466 0,54891 7,90522 0,05357 0,01926 0,01002 0,00056 2019 NVB 0,0354 0,07076 0,81685 0,64214 7,85987 0,04464 0,0167 0,01121 0,0005 2018 NVB 0,0352 0,06812 0,78317 0,58012 7,85638 0,04479 0,0153 0,00682 0,00031 2017 NVB 0,02668 0,06211 0,80345 0,47647 7,83892 0,04678 0,0148 0,00336 0,00016 2016 NVB 0,03221 0,0291 0,5105 0,80181 8,12813 0,04913 0,0083 0,12118 0,00698 2020 NAB 73 0,80221 0,53281 0,06812 0,0352 0,82805 0,53135 0,07076 0,0354 0,0298 0,02201 7,32877 0,01598 0,01212 7,30907 0,0027 0,002 0,16029 2017 2018 0,16859 SGB SGB 0,02668 0,06211 0,57804 0,82474 7,27985 0,18453 0,02631 0,03966 0,00732 2016 SGB 0,03221 0,0291 0,47503 0,78584 8,25577 0,07586 0,0186 0,09952 0,00806 2020 SeA 0,02796 0,0702 0,38158 0,85365 8,197 0,06942 0,02312 0,10054 0,00737 2019 SeA 0,0354 0,07076 0,58074 0,82798 8,14764 0,05909 0,01508 0,05943 0,00372 2018 SeA 0,0352 0,06812 0,57772 0,73506 8,09694 0,04939 0,00843 0,04937 0,00267 2017 SeA 0,02668 0,06211 0,58496 0,74584 8,01437 0,05688 0,01703 0,01986 0,00113 2016 SeA 0,03221 0,0291 0,5705 7,55814 0,1087 0,0243 0,04313 0,00501 2020 PGB 0,02796 0,0702 0,46909 0,89462 7,49933 0,1191 0,03159 0,01984 0,00243 2019 PGB 0,0354 0,07076 0,43405 0,92869 7,47567 0,1233 0,02963 0,03443 0,00429 2018 PGB 0,0352 0,06812 0,46846 0,84799 7,46684 0,1215 0,03339 0,01812 0,00238 2017 PGB 74 0,73886 0,6331 0,0702 0,02796 0,78947 0,63081 0,0291 0,03221 0,01937 0,016 8,65665 0,0918 0,09262 8,69242 0,00571 0,00567 0,05896 2019 2020 0,05879 STB STB 0,0354 0,07076 0,67122 0,73337 8,60857 0,06066 0,02115 0,07267 0,00462 2018 STB 0,0352 0,06812 0,73299 0,68317 8,5664 0,06306 0,04667 0,05085 0,00337 2017 STB 0,02668 0,06211 0,86955 0,67449 8,52117 0,06684 0,06912 0,00399 0,00027 2016 STB 0,03221 0,0291 0,35218 0,93951 8,61561 0,05824 0,017 0,10846 0,0067 2020 SHB 0,02796 0,0702 0,42089 0,91195 8,5626 0,05067 0,01907 0,13064 0,00702 2019 SHB 0,0354 0,07076 0,47804 0,84571 8,50957 0,05052 0,02396 0,10239 0,00549 2018 SHB 0,0352 0,06812 0,44898 0,89376 8,45638 0,05137 0,02332 0,10477 0,00592 2017 SHB 0,02668 0,06211 0,50497 0,89157 8,36912 0,05656 0,01875 0,06901 0,0039 2016 SHB 0,03221 0,0291 0,62592 0,79736 7,37917 0,15125 0,0141 0,0268 0,00415 2020 SGB 0,02796 0,0702 0,56239 0,80805 7,35818 0,15611 0,01939 0,04061 0,0067 2019 SGB 75 0,79135 0,39994 0,06211 0,02668 0,80773 0,40353 0,06812 0,0352 0,01502 0,01142 8,89647 0,14243 0,17334 9,01506 0,0087 0,00999 0,06105 2016 2017 0,05077 VCB VCB 0,03221 0,0291 0,40479 0,91647 8,31453 0,08116 0,0114 0,20963 0,01894 2020 TPB 0,02796 0,0702 0,39003 0,80244 8,216 0,07951 0,01291 0,23663 0,02058 2019 TPB 0,0354 0,07076 0,50592 0,82122 8,13411 0,078 0,01116 0,16996 0,01387 2018 TPB 0,0352 0,06812 0,53788 0,65087 8,09384 0,05379 0,01095 0,14432 0,00838 2017 TPB 0,02668 0,06211 0,57629 0,64135 8,02441 0,05371 0,0075 0,09948 0,00534 2016 TPB 0,03221 0,0291 0,31917 0,95553 8,64306 0,16973 0,005 0,16863 0,03057 2020 TCB 0,02796 0,0702 0,34709 0,88985 8,58399 0,16177 0,01334 0,16475 0,02902 2019 TCB 0,0354 0,07076 0,3184 0,74365 8,50649 0,16132 0,01753 0,16365 0,02871 2018 TCB 0,0352 0,06812 0,28747 0,90906 8,43039 0,09997 0,01606 0,23934 0,02554 2017 TCB 0,02668 0,06211 0,3575 0,82283 8,37174 0,08322 0,01575 0,16077 0,01338 2016 TCB 76 0,65978 0,4784 0,07076 0,0354 0,48374 0,0702 0,02796 0 0,70833 0,02796 0,0464 7,85304 0,00174 0,00281 7,88351 2018 2019 0,0594 ank ank 0,05845 VietAb VietAb 0,0352 0,06812 0,56511 0,733 7,80912 0,06389 0,02676 0,024 0,00157 2017 ank VietAb 0,02668 0,06211 0,50843 0,68522 7,78863 0,06536 0,0214 0,02475 0,00162 2016 ank VietAb 0,03221 0,0291 0,3981 0,96514 8,38859 0,07346 0,0174 0,25828 0,02163 2020 VIB 0,02796 0,0702 0,42162 0,95461 8,26607 0,07278 0,01963 0,24322 0,02018 2019 VIB 0,0354 0,07076 0,44197 0,9486 8,14353 0,07665 0,02519 0,20566 0,01673 2018 VIB 0,0352 0,06812 0,57085 0,94288 8,09047 0,07135 0,02488 0,12794 0,00988 2017 VIB 0,02668 0,06211 0,6153 0,79358 8,01919 0,08365 0,02575 0,06425 0,00537 2016 VIB 0,03221 0,0291 0,30469 0,7979 9,12262 0,07095 0,028 0,19632 0,01449 2020 VCB 0,02796 0,0702 0,34589 0,79748 9,08733 0,06615 0,0079 0,22905 0,01613 2019 VCB 0,0354 0,07076 0,34653 0,79316 9,03102 0,05789 0,00982 0,23516 0,01386 2018 VCB Source: Author synthesizes in Excel 77 8,57658 1,15792 0,33953 0,0702 0,02796 1,22135 0,29186 0,0291 0,03221 0,03421 0,029 8,62224 0,1957 0,19725 0,1119 0,02358 0,02616 0,12599 2018 2019 2020 0,0354 0,07076 0,34208 1,1625 8,50959 0,10749 0,03499 0,21167 0,02448 VPB VPB VPB 0,0352 0,06812 0,35543 1,30826 8,44366 0,10691 0,03394 0,21689 0,02543 2017 VPB 0,02668 0,06211 0,39264 1,09291 8,3594 0,07509 0,02908 0,22908 0,0172 2016 VPB 0,03221 0,0291 0,34611 0,66387 7,93716 0,06615 0,0175 0,058 0,00407 2020 ank VietAb ... Manegement on The Financial Results of Commercial Bank in Vietnam Presentation of empirical research findings on the effect of risk management on commercial banks' financial results in Vietnam Chapter... research on the topic ? ?The Impact of Credit Risk Manegement on The Financial Results of Commercial Bank in Vietnam. ” Assessing and suggesting actions to increase the performance of risk management in. .. efficiency of the commercial bank and the financial system as a whole CHAPTER 2: THEORETICAL BASIS OF THE IMPACT OF CREADIT RISK MANAGEMENT ON THE FINANCIAL RESULTS OF COMMERCIAL BANK IN VIETNAM