Determinants of Personal Credit Scoring of Commercial Bank’s Client in the Lao PDR

This is the first empirical study on commercial bank loans in Lao PDR. We have constructed the logistic regression model using a dataset from Commerial bank in Lao PDR...

Authors

  • Ananthala NAKHIENGCHAN Banking institutions
  • Keoudone KEOTHEPH Banking institutions
  • Chanhthasouk LATHSAATH Banking institutions
  • Thonemy KEOKINNALY Banking institutions

Keywords:

Credit Scoring, Loan Defualt, Logit Model, Credit Risk Management

Abstract

This is the first empirical study on commercial bank loans in Lao PDR. We have constructed the logistic regression model using a dataset from Commerial bank in Lao PDR. 10.000 observations of customers were recorded. Our regression analysis shows that eleven variables were found to be highly significant in the model. These are Gender of Borrower Loan (GOB), Statute of Borrower Loan (SOB), Loan interest rate (LIR), Outstanding balance (OSB), Current Address of Borrower Loan (CAB) positively associated with Determinants of Personal Credit Scoring of Commercial Bank’s Client in the Lao PDR. These are Age of Borrower Loan (AOB), Total value of Collaterals (TVC), Collaterals as Land and Home (CLH), Collaterals as Money in Account (CMA), Collaterals as Verhicle (CAV), Borrowing Periods (BOP) negatively associated with Determinants of Personal Credit Scoring of Commercial Bank’s Client in the Lao PDR.

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Published

2023-12-06

How to Cite

[1]
NAKHIENGCHAN, A. et al. 2023. Determinants of Personal Credit Scoring of Commercial Bank’s Client in the Lao PDR: This is the first empirical study on commercial bank loans in Lao PDR. We have constructed the logistic regression model using a dataset from Commerial bank in Lao PDR. Champasack University Scientific Journal. 6, 6 (Dec. 2023), 14–29.

Issue

Vol. 6 No. 6 (2023): Champasack University Scientific Journal 6

Section

Articles