Factors affecting credit quality at bank for social policy transaction office of Vinh Cuu district in Dong Nai province

Abstract

Credit quality plays the leading and most important role in banks' business activities. This is an activity that brings a significant source of income to banks. Therefore, the article aims to measure the factors affecting credit quality from an individual customer survey with 500 questionnaires distributed directly to customers at the Bank for Social Policy transaction office of Vinh Cuu district in Dong Nai province, which received 459 valid responses and 41 responses with incomplete information or with only one selected value for most questions. Then, the authors entered data and processed them using SPSS 20.0 software. The results of multiple linear regression analysis showed that the regression model fits the data set to 60.8%, or the independent variables in the model explain 60.8% of the variation in the dependent variable. Six factors affecting credit quality with a significance level of 5% include: Credit policy (0.416), internal control (0.405), credit information (0.319), banking technology (0.203), credit risk management (0.159), and credit officers (0.092). This means that when recommending implementation, priority is given to credit policy first and credit officers last.