MICRO FACTORS AFFECTING PERSONAL LOAN DEFAULT RISK IN COMMERCIAL BANKS IN DANANG, VIETNAM
Vol. 130 No. 5B (2021), Original Article
Vol. 130 No. 5B (2021)

MICRO FACTORS AFFECTING PERSONAL LOAN DEFAULT RISK IN COMMERCIAL BANKS IN DANANG, VIETNAM

Original Article
https://doi.org/10.26459/hueunijed.v130i5B.6370
Published 2021-10-26
Phan Hoang Long
University of Economics - Danang University
Ho Si Phuoc Lam
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Keywords

personal loan
commercial bank
default risk
credit officer
Vietnam
Danang

Abstract

This paper examines the micro factors affecting the risk of personal loan default using 6,287 loans to 4,023 individual customers from a commercial bank in Danang for the period between 2016 and 2020. Variables related to the characteristics of the loan, the customer, and bank’s credit officer are included in the logistic regression model. The result shows that the risk of personal loan default is related to the size and the purpose of the loan, customer’s gender and borrowing experience, and credit officer’s age. On the other hand, no relation is found between loan’s maturity duration, customer’s age, and credit officer’s gender and experience.

https://doi.org/10.26459/hueunijed.v130i5B.6370
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