CREDIT RISK RESTRICTION METHOD IN VIETNAM COMMERCIAL BANK

Abstract

Risk management in commercial banks has had many changes over the years. Most of the changes are regulations stemming from the 2008 global financial crisis and losses along with it to limit the risks of commercial banks. However, recent trends show that risk management will undergo more extensive changes in the next decade.The change in risk management of Commercial bank operating model is expected to indicate the extent of what is about to happen. No one can accurately examine the level of risk of commercial banks in 2025 or predict negative consequencs of technological progress (e.g. the appearance of Bitcoin virtual currency), macro economy’s shocks or commercial banks’ scandals. Nonetheless, basic grounding methods allow to outline possible risks in the future. Other trends show that commercial banks can provide short-term reports while preparing for the upcoming changes. In this way, commercial banks can avoid or reduce the risks created by different needs.