Microsoft Word F69703116 doc 21 Chapter3 Research Methodology Contents of Chapter3 includes (1) Research process; (2) Research methods; (3) Designing the questionnaire structure; (4) The accuracy of the data 3 1 Research Process Based on referring to materials research and theoretical grounds, we constructed in chapter 2, the research process includes 9 steps Step 1 Identify research issues credit risk if it occurs that it will impact enormously and influence directly on the development, earning.
Trang 1Chapter3 Research Methodology
Contents of Chapter3 includes: (1) Research process; (2) Research methods; (3) Designing the questionnaire structure; (4) The accuracy of the data
3.1 Research Process
Based on referring to materials research and theoretical grounds, we constructed in chapter 2, the research process includes 9 steps:
Step 1 - Identify research issues: credit risk if it occurs that it will impact enormously and influence directly on the development, earnings or survival of each credit organization Therefore, credit risk is always play an important role in banks and credit risk management has always kept in a central position in risk management
of banks
Step 2 - Determine research motivation: to help banks in identifying and controlling credit risk closely to limit losses in a minimum when risk occurred
Step 3 - Determine the purpose of research: from the state of credit risk management of the bank in recent years, through the process of analysis and evaluation to find out the cause of credit risk, the side has been done and not done in time On that basis, we propose comprehensive solutions in accordance with the operations of the bank
Step 4 - Theoretical grounds of managing credit risks: After studying the relevant documents, since researching on the state of credit risk management of bank, offering appropriate solutions to improve efficiency in credit risk management of the bank To solve the problem, we consult experts Ho Chi Minh University of Industry and Meiho University, to construct a questionnaire opinion survey of more than 100 employees in the bank
Step 5 - Constructing questionnaire: using the questionnaire after referring materials research, surveying of essays, designing appreciatively with the goal of this topic, then consult of specialists and complete the questionnaire, send it to the advisable professor to comments and approve of the questionnaire
Step 6, 7 - Distribute and collect questionnaire: after the questionnaire was gone through by a advisable professor, choosing the auxiliary person, training on
Trang 2how to write and hand the questionnaire to person is selected surveys and unite time with returning questionnaires After distrusting the questionnaire, people who support and conduct survey calls to remind people surveyed have chosen to invest more to answer the questionnaire By the time of appointment to receive back the questionnaire, which came to support directly, check and collect questionnaires Step 8 - Analyzing of data collected: after collecting the questionnaire survey, classification and data entry, general results and graphs used for analysis Since then remarked evaluation of survey results
Step 9 - Solutions, Recommendations and Conclusions: on the basis of reference material and comparison with survey results, offer solutions and recommendations to improve effect of credit risk management Finally concludes the overview of the topic
Figure 3-1 The Process of Research Themes Can Express Through the Following
1 Identifying research problem
2 Determine research motivation
3 Identify the purpose of research
4 Reasoning basis in managing credit risks
5 Develop Questionnaire
6 Deliver Questionnaire
7 Collect Questionnaire
8 Analysis of data collected
9 Suggestions, Recommendation and
Conclusions
Consultation from experts
Trang 33.2 Research Methods
Subject in this study is that the staff is working in the departments of bank currently Conducting a survey of 100 subjects are employees of the bank Thus, the number of sample survey of 100 samples We conducted survey the questionnaire and collect 100 valid votes Then proceed to enter data and analysis
3.3 Designing the Questionnaire Structure
Based on research material and what present in Chapter 2, combined with the opinions of experts, we designed a questionnaire based on the following groups:
* The reasons causing credit risk
* The credit risk be caused from customers
* The credit risk be caused from the weakness of risk management of bank With the group of factors, we have determined the detailed questions and put
in content to the survey questionnaire Specifically:
SURVEY FORM
My name is Nguyen Hoang Thanh Phi I am a graduate student of Graduate Institute of Business and Management, Meiho University in Taiwan (MU Taiwan) I
am conducting the research “Credit risk management in Agribank branch Bien Hoa (Vietnam Bank for Agriculture and Rural Development)” The purpose of this study
is not only showed out some credit risks but also taken some strategic solutions to raise effect of credit operation in Agribank’s Bien Hoa branch, Dong Nai province I
am highly appreciated your valuable energy and time spent on completing this survey questionnaires Your answers and experiences are greatly valuable contribution to the results of the research All information provided will be treated in secret Your participation is really useful for this research results Through there are some solution
to manage credit risk in our bank well
Full name: Position: Workplace:
Trang 4Part one: General information about the surveyors
* The size of credit deposit in your department:
Less than 100 billions From 100 to 500 billions Great than 500 billions
* About your working experience in bank:
Less than 3 years From 3 to 6 years Great than 6 years
* Your professional degree:
Senior high school Intermediate vocational College University Graduated University
Part two: The group of causes of credit risk
Group 1: The reasons causing credit risk
1 The change of economic such as crisis, depression and stag-inflation
Did not occur Occur less Occur common
2 Irresistibility causes such as natural calamity (earthquake, flooding and drought)
Did not occur Occur less Occur common
3 The change of the Government’s policies
Did not occur Occur less Occur common
4 The regulator modifies regulation makes the bank system activities-synchronous
Did not occur Occur less Occur common
5 The credit information system translate occur time-lag
Did not occur Occur less Occur common
Group 2: The credit risk be caused from customers
6 The loan procedure too looses (few regulations and few relevant data) can’t exactly execute the risk control
Did not occur Occur less Occur common
7 The amount of loan of customer exceed the payment of his ability
Did not occur Occur less Occur common
8 The customers intentionally deceive
Did not occur Occur less Occur common
9 Customers do not perform a credit contract after borrowing money from the bank
Did not occur Occur less Occur common
Trang 5Did not occur Occur less Occur common
11 Customer offer the truthful financial reports
Did not occur Occur less Occur common
Group 3: The credit risk be caused from the weakness of risk management of bank
12 The lack of customer’s information when evaluating conditions for offering loan
Did not occur Occur less Occur common
13 The lack of information of CIC (Credit Information Center)
Did not occur Occur less Occur common
14 The difficulty in verifying information from customer
Did not occur Occur less Occur common
15 Bank regulations are not suitable
Did not occur Occur less Occur common
16 The loan procedure of bank is not suitable
Did not occur Occur less Occur common
17 For evaluating and analyzing risk of customer, credit staffs often only do based on company’s financial report
Did not occur Occur less Occur common
18 The reducing in loan terms of stipulation to attract customer
Did not occur Occur less Occur common
19 The cheating by both staff and customers
Did not occur Occur less Occur common
20 The low qualification and uncompleted training of credit staff
Did not occur Occur less Occur common
21 The credit staff is overload of working
Did not occur Occur less Occur common
22 The working tools can not compatible with the demand of management Did not occur Occur less Occur common
23 The loan of bank too much focuses on same kind of customer
Did not occur Occur less Occur common
24 The lack of collateral information about its market price
Did not occur Occur less Occur common
Trang 625 The difficulty of handling of collateral Ex Rents contract
Did not occur Occur less Occur common
26 The inspection of collateral done without checking reality
Did not occur Occur less Occur common
27 The records declared on IPCAS system make mistake (IPCAS: The modernization of Interbank Payment and Customer Accounting System) Did not occur Occur less Occur common
28 For archiving the amount of credit target (so that qualities of loan was declined)
Did not occur Occur less Occur common
29 The lack of re-checking and supervising for the borrowers and collateral after loaning
Did not occur Occur less Occur common
30 The credit information of the company and customer share to the credit institutions are not completely
Did not occur Occur less Occur common
31 The updated relevant credit information always occur time-lag
Did not occur Occur less Occur common
Thankfulness Saying
I thank you for your valuable time to my survey form I really appreciate ideals from you all All ideal, please e-mail via Hoatrongtuyet2002@yahoo.com
Confirming of interviewee Bien Hoa, September 2010
Perform person
3.4 The Accuracy of the Data
Structured questionnaire survey built based on the reference to credit risk, experts and leaders in the banking opinions They are experienced in this field; they will assess the validity of the questionnaire survey At the same time contribution and going through of both advisor
Trang 73.5 Validity and Reliability of Research Data
In order to measure the reliability of the questionnaire, Cronbach (1951) had
supposed the Cronbach’s Alpha values were caculated for all groups of questions in
the questionnaire According Cronbach & Meel (1995) and Nunally (1978), a
Cronbach’s alpha of 0.7 serves as a cut off point for assessing reliability for
multi-item scales Hair, Babin, Money & Samouel (2003) suppose when the Cronbach’s
Alpha values greater than 0.7 means that the group of questions were reliable
Golafshani (2003) also pointed out that a high degree of stability indicates a high
degree of reliability, which means the results are repeatable To check the reliability
of the questionnaire table, we use SPSS 16.0 software tool with the Cronbach’s
Alpha verification function Table 3-1 shows values of Cronbach’s Alpha calculated
to the questionnaire From Table 3-1 we can find all values of Cronbach’s Alpha are
larger than 0.8 Therefore, we can confirm the the group of questionnaires were
reliable
Table 3-1 Reliability of the Questionnaire
Principle components No of Items Cronbach's
Alpha
2 The credit risk be caused from customers 6 911
3 The credit risk be caused from the weakness of
risk management of bank (1)
5 938
4 The credit risk be caused from the weakness of
risk management of bank (2)
6 912
5 The credit risk be caused from the weakness of
risk management of bank (3)
6 911
6 The credit risk be caused from the weakness of
risk management of bank (4)
3 826