Policy recommendations for controlling credit risks in commercial banks after the Covid-19 pandemic in Vietnam

Credit activities are an essential commercial bank activity. Therefore, preventing and limiting credit risks is vital for their credit activities. The Covid-19 epidemic is still ongoing. In 2021, 30 banks listed bad debts of more than 113 trillion VND, a 26% increase relative to 2020. Vietnam has the dual goal of fighting the outbreak while continuing with socio-economic development. In this context, credit activities are still essential. Banks require the necessary and appropriate management solutions to adapt to the new situation to ensure safe and sustainable credit activities. This study analyzes some current problems and leading causes of the credit risk of commercial banks. The author has primary data from detailed questionnaires distributed directly to 300 credit risk managers based on a random process. This study examines the descriptive statistics, and compares, analyzes, and synthesizes the statistical reports of commercial banks. The study is novel in that it analyzes more than 60% of commercial banks affected by Covid-19 in terms of risks from subjectivity and risks due to objective causes. Therefore, the results suggest several policy recommendations for minimizing Vietnamese commercial banks' credit risks after the Covid-19 pandemic.