Applying Z Model in Vietnamese Commercial Banks to Measure Credit Risks in Industrial Companies' Loans

Abstract

The main target of this paper is applying E.I. Altman Z-score model to measure credit risks that appear when commercial banks lend money to industrial companies listed on the stock exchange market of Vietnam. The research results are the principles to offer several solutions that apply Z model to enhancing credit risks management in terms of industrial companies' loans in Vietnamese commercial banks. Additionally, the research results could help industrial companies beware of spending loan money.