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10 (2) 2020

Factors impact on the effectiveness of internal control systems in credit facilities in Binh Thuan province commercial banks


Author - Affiliation:
Nguyen Kim Phuoc - Ho Chi Minh City Open University , Vietnam
Vo Thi Que Ngoc - Ho Chi Minh City Open University , Vietnam
Corresponding author: Nguyen Kim Phuoc - phuoc.nk@ou.edu.vn

Abstract
The study aims to confirm and measure factors that affect the effectiveness of internal control systems in credit facilities in Binh Thuan province commercial banks. This research used the framework by COSO 2013 and results of expert interviews to offer research models and scales. It was carried out for collecting data from 300 managers and employees of 10 commercial banks (30 people/bank) in Binh Thuan province in 2020. The study used a 5-level likert scale and used SPSS 22.0 software for analysis. The results of multivariate regression analysis (OLS) show that all factors: Risk assessment, Risk management, Control environment, Control procedure, Control activities, Credit control, Control capacity , Information, Communicates internally, Communicates externally have an impact on the effectiveness of internal control systems in credit facilities of commercial Banks in Binh Thuan province.

Keywords
internal control (COSO 2013); credit operations; effectiveness; commercial banks

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Cite this paper as:

Nguyen, K. P., & Vo, T. Q. N. (2020). Factors impact on the effectiveness of internal control systems in credit facilities in Binh Thuan province commercial banks. Ho Chi Minh City Open University Journal of Science – Economics and Business Administration, 10(4), 94-111. doi:10.46223/HCMCOUJS.econ.en.10.2.582.2020


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DOI: https://doi.org/10.46223/HCMCOUJS.econ.en.10.2.582.2020
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