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

Authors

  • Nguyen Kim Phuoc
    Ho Chi Minh City Open University, VN
  • Vo Thi Que Ngoc
    Ho Chi Minh City Open University, VN

DOI:

10.46223/HCMCOUJS.econ.en.10.2.582.2020

Keywords:

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

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.

Downloads

Download data is not yet available.

References

Abiola, I., & Oyewole, A. T. (2013). Internal control system on fraud detection: Nigeria experience. Journal of Accounting and Finance, 13(5), 141-152.

Adetiloye, K. A., Olokoyo, F. O., & Taiwo, J. N. (2016). Fraud prevention and internal control in the Nigerian banking system. International Journal of Economics and Financial Issues, 6(3), 1172-1179.

Ayagre, P., Appiah-Gyamerah, I., & Nartey, J. (2014). The effectiveness of internal control systems of banks. The case of Ghanaian banks. International Journal of Accounting and Financial Reporting, 4(2), 377-389. doi:10.5296/ijafr.v4i2.6432

Basel Committee. (1998). Framework for internal control systems in banking organization. Retrieved May 10, 2020, from https://www.bis.org/publ/bcbs40.htm

Brooks, C. (2008). Introductory econometrics for finance (2nd ed.). Cambridge, UK: Cambridge University Press.

Downloads

Received: 19-07-2020
Accepted: 17-08-2020
Published: 31-08-2020

Statistics Views

Abstract: 728
PDF: 599
Crossref
Scopus
Google Scholar
Europe PMC

How to Cite

Phuoc, N. K., & Ngoc, V. T. Q. (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(2), 94–111. https://doi.org/10.46223/HCMCOUJS.econ.en.10.2.582.2020

License

Copyright (c) 2020 Nguyen Kim Phuoc; Vo Thi Que Ngoc

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.