The effectiveness of the internal control system in Vietnamese credit institutions

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In the context of global economic integration, there are many opportunities for promoting economic development, but there are also challenges of complexity and risk in business activities. This always raises many questions that need to be resolved for credit institutions. The internal control system of credit institutions has become increasingly important for the sustainable development of the national financial system. The purpose of the paper is to evaluate the effectiveness of the internal control system in the practical application of Vietnamese credit institutions. Descriptive statistics are applied to analyze data using SPSS software. The structured questionnaire is designed to collect objective opinions and purposive sampling techniques among 382 experts who are managers of credit institutions in 2020. The results show that all five components improve the effectiveness of the internal control system, and the internal control system plays a role in the safety of Vietnamese credit institutions. Thus, the Central Bank of Vietnam should improve the legal framework and related internal control provisions for credit institutions in accordance with international principles to improve the effectiveness of the internal control system.

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    • Table 1. Cronbach’s alpha (for management oversight and control culture)
    • Table 2. Descriptive statistics (for management oversight and control culture)
    • Table 3. Cronbach’s alpha (for risk recognition and assessment)
    • Table 4. Descriptive statistics (for risk recognition and assessment)
    • Table 5. Cronbach’s alpha (for control activities and segregation of duties)
    • Table 6. Descriptive statistics (for control activities and segregation of duties)
    • Table 7. Cronbach’s alpha (for information and communication)
    • Table 8. Descriptive statistics (for information and communication)
    • Table 9. Cronbach’s alpha (monitoring activities and correcting deficiencies)
    • Table 10. Descriptive statistics (monitoring activities and correcting deficiencies)
    • Formal Analysis
      Tran Quoc Thinh
    • Project administration
      Tran Quoc Thinh
    • Supervision
      Tran Quoc Thinh
    • Writing – original draft
      Tran Quoc Thinh, Ly Hoang Anh
    • Writing – review & editing
      Tran Quoc Thinh
    • Conceptualization
      Ly Hoang Anh
    • Methodology
      Ly Hoang Anh
    • Resources
      Ly Hoang Anh
    • Validation
      Ly Hoang Anh
    • Visualization
      Ly Hoang Anh
    • Data curation
      Nguyen Khanh Tuan
    • Investigation
      Nguyen Khanh Tuan
    • Software
      Nguyen Khanh Tuan