Factors Influencing the Approval of Credit at Banque Pour le Commerce Extérieur Lao Public (BCEL)

Abstract

The objective of this study is to analyze the key factors influencing credit approval decisions at BCEL using the 5C’s framework. A quantitative method was employed with a sample of 136 credit officers from BCEL. Data were collected using a questionnaire, and the results were analyzed using SPSS. The results have shown that the majority of respondents were male, with most falling within the age range of 31–40 years old. In terms of professional position, more than half were employed as professional credit staff. Educational attainment was predominantly at the bachelor’s degree level, and a large proportion of respondents were married. Income distribution revealed that over half of the respondents earned between 13,000,001 and 18,000,000 kip per month. Regarding academic specialization, nearly half had graduated in the field of finance and banking. These demographic factors highlight that BCEL’s credit officers are largely experienced professionals in their early to mid‑career stage, with strong educational backgrounds and stable family and financial circumstances.

Analysis of the 5C’s framework revealed that Character and Capacity were the most influential factors in credit approval decisions, followed by Capital and Conditions, reflecting both qualitative and quantitative considerations. These findings highlight the importance of borrower reliability and repayment ability, while also underscoring the role of capital strength and external conditions in risk assessment. Overall, the study demonstrates that credit officers’ decisions are shaped by a balance of personal attributes, financial capacity, and institutional risk management policies, offering insights into lending practices within the BCEL.