CREDIT RISK MANAGEMENT FOR INCREASING EFFICIENCY OF THE GOVERNMENT SAVINGS BANKS IN BANGKOK AND METROPOLITAN AREA

Abstract

The purposes of this research were to study credit risk management, efficiency in credit management, recommendations and guidelines for credit risk management, and the relationship between credit risk management in terms of policy and collateral and process, which included credit analysis, debtor classification, assessment of collateral value, credit review, and debt restructuring, and the efficiency of credit management of the Government Savings Banks in Bangkok and Metropolitan Area. Both quantitative and qualitative methods were applied to this study. The samples consisted of 125 participants from heads of credit department and credit staffs, 3 from executives and credit staffs, and 5 credit customers of the Banks. The questionnaire and in-depth interview were used for data collection. Statistics used for data analysis included frequency, percentage, mean, standard deviation, and the Pearson Correlation Coefficient. The findings revealed that credit risk management in terms of policy and collateral was positively related to an increase of credit management efficiency at the moderate level. Due to the process of credit risk management, it was positively related to an increase of credit management efficiency at upper high level. Moreover, customers and executives of Government Savings Banks had opinions regarding policy setting of debt, risk management of debt and stipulation and guidelines for efficiency risk management in order to prevent risk occurrence.