Combined S&P and Z-score research in credit assessment of Vietnamese commercial banks

Economists often refer to banking as the "business of risk." Indeed, no industry presents risks as significantly as the monetary-credit sector. Banks face risks not only from their subjective causes but also from those caused by customers. Therefore, "the credit risk of banks is not merely additive but could be a multiplicative factor of the economy's risks." Given this critical role, this paper proposes a combination of a credit rating solution with Altman's Z-Score model (Altman [1]) and a scoring method to provide early warnings for corporate credit risks. This approach aims to equip commercial banks with an additional tool to support credit decision-making.