H6: Interest rate risk forecasting has a significant direct impact on the bank's interest rate risk management. When interest rate risk forecasting is done well, the bank will avoid risks and the level of interest rate risk management efficiency will also increase.
H7: Characteristics of commercial banks' business activities (scale of operations, lending policies)
borrowing and capital mobilization..) have a relationship
homogeneity,
direct impact, when
Commercial banks with good business characteristics, suitable for the market, will increase their risk management work.
H8: The bank's human resources have a positive relationship, directly and significantly affecting the work of QTRRLS. When the bank has good human resources, well meeting the needs of the bank and customers, the bank's work of QTRRLS will increase.
2.3.3. Proposed model
According to the theory stated in section 1.2.3.1 on factors affecting interest rate risk management and through referring to studies on the effectiveness of management, the author proposes to build a research model on interest rate risk management of Viettinbank as follows:
Inspection and supervision of interest rate risk management process
H4 (+) |
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H1(+)
H2(+)
H3 (+)
Management
H5 (+)
treat
H6 (+)
risk
H7 (+)
round
interest
H8 (+)
rate
Central Bank's interest rate management mechanism
The level of development and stability of the macro economy
Building QTRR process
Bank information technology system
Interest rate risk forecasting
Characteristics of commercial banks' business activities
Bank human resources
Figure 2.3. Proposed research model
Source: Author simulation
2.3.4. Research methods
Preliminary research
The preliminary research was conducted through two methods: qualitative research and quantitative research. The purpose of the qualitative research was to explore the factors affecting the interest rate risk management of Viettinbank to adjust and supplement the scale to suit the characteristics of Viettinbank, thereby building the scales to be included in the research model and establishing a questionnaire. The qualitative research was conducted through focus group discussions with experts in the banking industry, leaders of the bank.
The result of this study is to develop an interview questionnaire.
Officially used for official research.
After conducting qualitative research, the 08 factors of the research model on the effectiveness of QTRRLS were agreed upon and can be used for further research, which is quantitative research.
Formal research
The official research was conducted using quantitative research methods immediately after the questionnaire was revised from the preliminary research results (official interview form). This study directly surveyed the staff,
bank managers. The survey subjects were bank officers.
Viettinbank. The goal is to re-verify the scales in the research model. This is a detailed analysis of the data collected through the survey sent to bank employees to determine the logic and correlation of the factors with each other and from there give specific results on the research topic.
2.3.4.1. Building scales and survey questionnaires
The scale of interest rate risk management of Viettinbank in this study includes 45 variables built on a 5-level scale, including 45 variables.
observation and after preliminary research, the study has specific adjustments and additions as shown in table 2.9
Table 2.11. Scale of QTRRLS work
Name
ingredient
Variable symbol | Content | Source | |
1. Regulations on basic interest rates of | |||
Muscle | LS1 | SBV has influence on risk management | |
regime | bank risk | ||
thing | LS2 | 2. Interest rate management mechanism of The State Bank has an impact on bank risk management. | |
interest rate action Echo | Based on the provisions of the Credit Law; Practical survey; expert opinion | ||
LS3 | 3. Interest rate management mechanism of The State Bank has influence on the management of bank assets. | ||
row | |||
LS4 | 4. Interest rate management mechanism of The State Bank has influence on the management of bank assets and liabilities. | ||
Central | |||
nursery | |||
Level | VM1 | 5. The political system of the country has impact on interest rate risk management | Pursuant to the provisions of the Law on Credit |
VM2 | 6. Economic inflation affects interest rate risk management. | ||
release | use; survey | ||
develop | practice; meaning | ||
VM3 | 7. Economic growth affects interest rate risk management. | ||
and the | expert opinion |
fine
definition of
VM4 | 8. The financial market of the economy affects interest rate risk management. rate | ||
VM5 | 9. The state's fiscal policy has impact on interest rate risk management | ||
Build | QTRR1 | 10. Develop a process for managing interest rate sensitive assets. | |
QTRR2 | 11. Develop a process for managing interest rate sensitive liabilities. | ||
build | Based on regulations | ||
rule | in Law of Trust | ||
QTRR3 | 12. Develop a process to manage interest rate risk. | ||
program | use; survey | ||
management | practice; meaning | ||
QTRR4 | 13. Assessment of interest rate risk management process | ||
risk management | expert opinion | ||
round | |||
QTRR5 | 14. Adjust interest rate risk management process. | ||
Labour | 15. Regularly check the process | Based on regulations | |
work | KTGS1 | Risk management will limit interest risk. | in Law of Trust |
check | productivity in business | use; survey | |
KTGS2 | 16. Regularly review the risk management process to make appropriate adjustments for each stage of development. Bank | ||
check | practice; meaning | ||
supervisor | expert opinion | ||
close | |||
program | |||
KTGS3 | 17. Monitoring will help better manage interest rate risk | ||
management |
risk management
KTGS4 | 18. Supervision will help the machine work better. | ||
profit System system | IT1 | 19. Good information technology will help manage risks well | |
IT2 | 20. Technology will help measure interest rate risk better | ||
information technology news of | Based on the provisions of the Credit Law; Practical survey; expert opinion | ||
IT3 | 21. Technology will help better monitor interest rate risk | ||
IT4 | 22. Technology will help manage interest rate risk in business | ||
echo | |||
row | |||
DBRR1 | 23. Building a database for interest rate risk forecasting | ||
DBRR2 | 24. Using information technology to forecast interest rate risk | ||
DBRR3 | 25. Use tools to analyze interest rate sensitivity | Based on regulations | |
Forecast | in Law of Trust | ||
risk | use; survey | ||
DBRR4 | 26. Forecasting interest rate risk for debt assets | ||
interest rate | practice; meaning | ||
DBRR5 | 27. Forecasting interest rate risk for assets | ||
expert opinion | |||
DBRR6 | 28. Regular forecasting will limit interest rate risk for banks. | ||
DBRR7 | 29. Accurate forecasting will limit interest rate risk for banks | ||
Special | KD1 | 30. The bank's investment portfolio has | Based on regulations |
Business operations of commercial banks
impact on interest rate risk management | in Credit Law; Practical Survey; Expert Opinion | ||
KD2 | 31. Lending policy affects interest rate risk management | ||
KD3 | 32. Funding methods that affect interest rate risk management | ||
KD4 | 33. Does the scale of a bank's operations affect interest rate risk management? rate | ||
KD5 | 34. The organizational structure of the bank has impact on interest rate risk management | ||
Bank human resources | NLNH1 | 35. Employees must have professional qualifications. | Based on provisions in the Credit Law; Practical survey; expert opinions |
NLNH2 | 36. Employees must master the technologies | ||
NLNH3 | 37. Employees must have a thorough understanding of interest rate risk and interest rate risk management. | ||
INTEREST RATE RISK MANAGEMENT | HQ1 | 38. An appropriate interest rate management mechanism of the State Bank will help manage risks. better interest rate | Based on provisions in the Credit Law; Practical survey; expert opinions |
HQ2 | 39. A stable level of economic development will help manage interest rate risks well. than | ||
HQ3 | 40. Having a risk management process will help manage interest rate risk better. | ||
HQ4 | 41. Inspection and monitoring will help management |
better interest rate risk | ||
HQ5 | 42. Good business performance will help manage interest rate risk better | |
HQ6 | 43. Good risk forecasting leads to better interest rate risk management | |
HQ7 | 44. Good human resources will help manage interest rate risk better | |
HQ8 | 45. Modern technology will help manage interest rate risk better. |
Source: Author's construction and synthesis
2.3.4.2. Sampling and data collection methods
There are different views on sample size, many researchers require a large sample size because it is based on the theory of large sample distribution. However, what sample size is considered large is currently not determined.
clearly defined, and it depends
depends on the method
estimates that historical research
According to Hoelter (1983), the critical sample size is 200, while according to Bollen (1989), the minimum sample size is five samples for a parameter to be estimated. Hair & colleagues (2006) said that if using the Maximum Likelihood estimation method, the minimum sample size is from 100 to 150, the minimum sample size for performing EFA analysis is 50 and preferably 100 and the ratio of observations/measured variables is 1/5, meaning that for each measured variable, at least 5 observations are needed for an estimated parameter (Hair et al., 2006).
According to the study of Hair et al. (1998) for factor analysis
To explore EFA, the minimum sample size must be 5 times the total number of observed variables in the