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THE FACTORS RELATED TO CREDIT RISK OF COMMERCIAL BANK: THE CASE OF CHINA AND THAILAND |
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| รหัสดีโอไอ | |
| Creator | Feng Linlan |
| Title | THE FACTORS RELATED TO CREDIT RISK OF COMMERCIAL BANK: THE CASE OF CHINA AND THAILAND |
| Publisher | University of the Thai Chamber of Commerce |
| Publication Year | 2563 |
| Journal Title | UTCC International Journal of Business and Economics |
| Journal Vol. | 12 |
| Journal No. | 3 |
| Page no. | 159-180 |
| Keyword | FACTORS, CREDIT RISK, COMMERCIAL BANK, CHINA, THAILAND |
| URL Website | http://ijbejournal.com/ |
| Website title | ijbejournal |
| ISSN | 1906-5582 (paper) |
| Abstract | The financial system plays a crucial role in the country's economic development, in which banking sector is an important part in financial system. A commercial bank is a financial institution that offers a number of banking services such as deposits, personal and business loans, and investment products for supporting a sustainable economic development. In general, banks want to earn as much money as possible but at the low risk possible. Credit risk is one of the major issues in risk management in the banking sector, which refers to the risk that a borrower will default on any type of the debt by failing to make required payments or even not on time. Credit risk is the potential loss due to the nonperformance of a financial contract, or financial aspects of nonperformance in any contract. It leads to bad loan problem in banking sector. This research intended to investigate the factors related to credit risk of Chinese banking sector and Thailand banking sector during 2007 to 2014. It will be superiority to understanding the credit risk that banks facing, in order to implement effective credit risk management to supervise and reduce this risk to achieve the long-term success. The finding indicated that there are differences in Risk-weighted assets/Total Assets (RWA/TA) and Non Performing Loans/Total Liabilities (NPL/TL) between Chinese commercial banks listed in SSE and SZSE and Thai commercial banks listed on SET during 2007-2014. The macroeconomic factors and bank-specific factors were more significant on explaining the RWA/TA and NPL/TL in Chinese commercial banks listed in SSE and SZSE; while macroeconomic factors and bank-specific factors are more significant on explaining the NPL/TL of commercial banks than those of RWA/TA |
