MINISTRY OF EDUCATION AND TRAINING
UNIVERSITY OF ECONOMIC HO CHI MINH CITY
TRUONG THI HOA
DEVELOPMENT OF BANKING SERVICES AT NAM VIET COMMERCIAL JOINT STOCK BANK
Specialization: Finance – Banking
Code: 60340201
MASTER THESIS OF ECONOMY
SCIENCE INSTRUCTOR:
Assoc. Prof. Dr. TRAN HOANG NGAN
Maybe you are interested!
-
Developing banking services at Nam Viet Commercial Joint Stock Bank - 2 -
Policies, Management Mechanisms, Management Capacity Of The Central Bank -
Experience Of International Banks In Developing Banking Services And Lessons Learned For Vietnamese Commercial Banks.
Ho Chi Minh City – 2013
GUARANTEE
After a period of study and research, I have completed the course K19 banking major of the University of Economics Ho Chi Minh City and qualified to write and defend the graduation thesis.
As an employee working at Nam Viet Commercial Joint Stock Bank, first to complete the thesis well, then contribute to the development of the bank’s business, I chose the topic “Development of the Bank”. banking services at Nam Viet Commercial Joint Stock Bank” as the research content. I hereby declare that this thesis is my own work. The data in the thesis are used honestly. The research results presented in this thesis have never been published in any other works.
Thesis author
Truong Thi Hoa
TABLE OF CONTENTS
COVER COVER
GUARANTEE
TABLE OF CONTENTS
LIST OF ABBREVIATIONS
LIST OF TABLES
LIST OF CHARTS RED
PREAMBLE ………………………………………… …………………………… ………………1
CHAPTER 1: GENERAL ISSUES ABOUT BANKING AND BANKING SERVICES ………………………. …………………………… …………3
1.1 Overview of commercial banks ……………………………………………………………….. ……………………….3
1.1.1 The concept of commercial banks …………………………………………………………………. ……………………………3
1.1.2 Functions of NHM ……………………………………………………………….. ……………………….3
1.1.3 Classification of commercial banks …………………………………………………… ………………………………………….4
1.1.3.1 Based on the form of ownership …………………………………………………… …………4
1.1.3.2 Based on business strategy …………………………………………………………….. …………5
1.1.4 Basic operations of commercial banks: ………………………………………………………… …………5
1.1.4.1 Debt operations: ……………………………………………………….. …………………………………………5
1.1.4.2 The profession has: ………………………….. …………………………………………5
1.1.4.3 Banking service business …………………………………………………………….. ………5
1.2 The concept of banking services, development of banking services …………………………………………6
1.2.1 The concept of banking services …………………………………………………………….. …………6
1.2.2 Concept of development of banking services …………………………………………………………… ..7
1.3 Types of banking services …………………………………………………………….. ……………………………7
1.3.1 Traditional banking services …………………………………………………………….. …………7
1.3.1.1 Capital mobilization ……………………………………………………………….. …………………………………………7
1.3.1.2 Credit grant …………………………………………………………………….. ………………………………………….8
1.3.1.3 Banking services on payment and treasury ………………………….. …8
1.3.1.4 Banking services on foreign exchange …………………………………………………… …………9
1.3.1.5 Other services: …………………………………………………………….. …………………………………………9
Modern banking services …………………………………………………………………………… ……………………….10
1.3.2.1 Electronic banking services (E-banking)……………………………………………………….. ………….10
1.3.2.2 Card service …………………………………………………………….. ………………………………………….10
1.4 The role of the development of banking services ………………………………………………. ……..11
1.5 Factors affecting the development of banking services. ………………twelfth
1.5.1 Macro factors …………………………………………………………….. …………………………… ….twelfth
1.5.1.1 Legal environment …………………………………………………………….. ………………………………..twelfth
1.5.1.2 Policies, management mechanisms, and management capacity of the Central Bank …………………………………………………… …………………………… …………………….twelfth
1.5.1.3 Integration into the international financial market …………………………………………………… ……….13
1.5.2 Micro factors …………………………………………………………….. …………………………… ….13
1.5.2.1 Banking service providers …………………………………………………………….. ……….13
1.5.2.2 Objects who need to use the service …………………………………………………………… …….13
1.5.2.3 Price of the service …………………………………………………………….. ……………………….14
1.5.2.4 Other factors …………………………………………………………….. ……………………….14
1.6 Experiences of international banks in developing banking services and lessons learned for Vietnamese commercial banks …………15
1.6.1 Experiences of Banks in Bangkok – Thailand …………………………………………………………… .15
1.6.2 Experience of Standard Chartered in Singapore. …………………………………16
1.6.3 Lessons learned for Vietnamese commercial banks …………………………………………………… ….16
CONCLUSION CHAPTER 1……………………………………………………………………… …………………………………………17
CHAPTER 2: CURRENT SITUATION OF BANKING SERVICES AT NAM VIET COMMERCIAL JOINT STOCK COMPANY …………………………………………. …………………………… …….18
2.1 Brief introduction of Navibank and the results of Navibank’s business activities in the period from 2009 to 2012 ………………………….. ………….18
2.1.1 Introduction to Nam Viet Bank …………………………………………………………………………. …………18
2.1.2 Brief history of formation and development …………………………………………………… …………18
2.1.3. Accomplishments and Recognitions …………………………………………………………………………. …………20
2.1.3.1 Recognition and assessment of society: ……………………………………………………….. …………20
2.1.3.2 Customer reviews …………………………………………………………………………. ………..21
2.1.3.3 Recognizing the assessment of international financial institutions and news agencies on banking and finance …………………………………………………… …………………………… …….21
2.1.4 The results of business activities of Nam Viet Commercial Joint Stock Bank in the period from 2009 to 2012. …………………………………………………… …………………………… ..21
2.1.4.1 Profitability ……………………………………………………………………………………….. ……………………………21
2.1.4.2 Ability to pay …………………………………………………………………….. …………22
2.1.4.3 Total assets …………………………………………………………….. …………………………………………22
2.1.4.4 Fundraising activities ……………………………………………………………….. …………23
2.1.4.5 Credit activities …………………………………………………………….. ………….25
2.1.4.6 Business results …………………………………………………………….. ……………………………28
2.2 Service operations …………………………………………………………………………… …………………………………………28
2.2.1 Card service …………………………………………………………………. …………………………… ……28
2.2.2 Remittance services …………………………………………………………….. ……………………………28
2.2.3 International payments …………………………………………………………….. ……………………………28
2.2.4 Guarantee …………………………………………………………….. …………………………… ………29
2.3 List of banking services being performed at Nam Viet Commercial Joint Stock Bank ………………………………………………………… …………………………… …………29
2.3.1 Banking services in terms of capital mobilization …………………………………………………………… …………….29
2.3.1.1 Payment deposit: ………………………………………………………… ……………………………29
2.3.1.2 Term deposits: ……………………………………………………………………… …………29
2.3.1.3 Savings deposit: ……………………………………………………….. ………….30
2.3.2 Credit banking services: ……………………………………………………….. …………30
2.3.3 Payment and treasury banking services ………………………………………….. ..32
2.3.4 Banking services on foreign exchange: ……………………………………………………….. …………32
2.3.5 Modern banking services …………………………………………………………….. …………33
2.3.5.1 Electronic banking services (e-banking) ………………………………………………………… ………33
2.3.5.2 Card banking services:…………………………………………………………………….. ……………………………34
2.4 Assessing the level of development of banking services through SWOT analysis at Navibank …………………………………………………… …………………………… …….34
2.4.1 Strengths …………………………………………………………….. …………………………… …..35
2.4.2 Weaknesses …………………………………………………………….. …………………………… ……..35
2.4.3 Opportunities ……………………………………………………………………… …………………………… …………36
2.4.4 Challenges …………………………………………………………….. …………………………… …..36
2.5 Main causes of the above-mentioned problems …………………………………………………………………………. ……..37
2.5.1 Objective reasons …………………………………………………………….. ………….37
2.5.2 Subjective causes from Navibank’s side…………………………………………………………………….. …………37
2.6 Survey on customer satisfaction about banking services of Nam Viet Commercial Joint Stock Bank…………………………………………. …………………………… …………39
2.6.1 Survey model …………………………………………………………….. …………………………………………39
2.6.2 Survey process …………………………………………………………………….. …………………………………………39
2.6.3 Survey results …………………………………………………………….. …………………………………………43
2.6.3.1 Descriptive statistics for qualitative variables ……………………………………………………………… …………43
2.6.3.2 Evaluation of the scale by Cronbach Alpha reliability coefficient: …………47
2.6.3.3 Evaluation of the scale by EFA exploratory factor analysis …………48
2.6.3.4 Multiple linear regression analysis, testing hypotheses and research models ………………………………………….. …………………………… …………52
2.6.3.5 Testing of Anova …………………………………………………………………. ………….57
CONCLUSION CHAPTER 2 ………………………………………………………………… …………………………………………62
CHAPTER 3: SOME SOLUTIONS FOR DEVELOPING BANKING SERVICES AT NAM VIETNAM JOINT STOCK COMMERCIAL BANK………………………. .63
3.1 Navibank’s strategic objectives and orientation to 2015 ……………………………………………………….63
3.2 Solutions for developing banking services of Nam Viet Commercial Joint Stock Bank……………………………………………………….. …………………………… …………………..66
3.2.1 Group of specific solutions for each service segment …………………………………………………………… …….66
3.2.1.1 Solutions for capital mobilization services ………………………………………………. ……………66
3.2.1.2 Solutions for credit services …………………………………………………………….. ………………….66
3.2.1.3 Solutions for payment and treasury services ………………………………………………. .sixty seven
3.2.1.4 Solutions for foreign exchange services …………………………………………………… …………………sixty seven
3.2.1.5 Solutions for card services and e-banking ………………………………… sixty seven
3.2.2 Group of support solutions …………………………………………………… ……………………….68
3.2.2.1 Completing the banking legal system ………………………………………………. …….68
3.2.2.2 Improving the capacity and role of the State Bank in managing monetary policy and stabilizing the economy ………………………….. …………68
3.2.2.3 Financial solutions …………………………………………………………….. ……………..68
3.2.2.4 Solutions on human resources …………………………………………………… ……………..69
3.2.2.5 Technological solutions …………………………………………………………….. …………71
3.2.2.6 Solutions on policy, service development process at Navibank. ……72
3.2.2.7 Solutions to improve customer satisfaction…………………………74
3.2.2.8 Brand solutions …………………………………………………………………………. …………76
3.2.2.9 Marketing solutions …………………………………………………… …………77
CONCLUSION CHAPTER 3……………………………………………………………………… ………….79
CONCLUDE………………………………………… …………………………… …………80
REFERENCES
DANH MỤC CÁC CHỮ VIẾT TẮT
ANZ : ANZ Single Member Bank (Vietnam)
ATM : (Automatic Teller Machine): Automatic teller machine
GDP : Gross Domestic Product
HSBC : HSBC Bank (Vietnam)
NAVIBANK : Nam Viet Commercial Joint Stock Bank
Joint Stock Commercial Bank: Joint Stock Commercial Bank
Commercial Bank: Commercial Bank
POS (Point of sale terminal, Veriphone): Card payment device
SACOMBANK : Saigon Thuong Tin Commercial Joint Stock Bank
Credit institution: Credit institution
TT: Telegraphic transfer
WTO: World Trade Organization.
LIST OF TABLES
Table 2.1: Operation status of Navibank ……………………………………………………………………………………….. …………….19
Table 2.2: Profit margin …………………………………………………………………………. …………. 22
Table 2.3: Ability to pay ……………………………………………………………….. …………………………………………22
Table 2.4: Profitable asset items (December 31, 2012) ………………………………………….. ………..23
Table 2.5: Summary of the coded scales ……………………………………………………………………………………….. ………… 41
Table 2.6: Descriptive statistics of the sample …………………………………………………………….. …………………………43
Table 2.7 : Descriptive statistics of factors assessing satisfaction level …………………………………………44
Table 2.8: Cronbach Alpha coefficients of the scale components …………47
Table 2.9 : Result of factor analysis for the second time exploratory scale …………………..49
Table 2.10: Result of factor analysis to explore the satisfaction scale ……….51
Table 2.11: Results of running multiple linear regression …………………………………………………… ……….54
Table 2.12 : Pearson correlation coefficient test results …………………………………………………………………………. 55
Table 2.13: Results of regression analysis …………………………………………………………….. ……………..56
Table 2.14: Order of impact levels of factors on customer satisfaction …….57
Table 2.15: Analysis of differences by attributes of research subjects ..57
Table 2.16: Income-based variance test ……………………………………………………………………… …………58
Table 2.17: ANOVA – income test …………………………………………………… …………58
Table 2.18: Post Hoc Tests – income …………………………………………………… …………59
LIST OF CHARTS RED
Figure 2.1: Growth in Total Assets …………………………………………………… …………23
Figure 2.2: Growth of capital mobilization from individuals and economic organizations …………………..24
Figure 2.3: Structure of capital mobilization by type of currency …………………………………………………………… …………24
Figure 2.4: Capital mobilization structure by customer …………………………………………25
Figure 2.5: Capital mobilization structure by term. …………………………… ..25
Figure 2.6: Credit balance growth. …………………………… ……….26
Figure 2.7: Loan structure by type of customer …………………………………………………………… ………… 26
Figure 2.8: Loan structure by term ………………………………………………. …………27
Figure 2.9: Loan structure by currency. …………………………… ……….. 27
PREAMBLE
1. Reason for choosing the topic
In the multi-sector commodity economy, economic organizations and individuals conduct business in many different industries and fields. In particular, the development of the banking industry is an indispensable contribution to the current market economy. The economy can only grow at a high rate if there is a strong banking system. Banks compete in many forms such as increasing charter capital, developing networks, developing technology, diversifying banking services to attract customers to them. For small-sized banks, it is necessary to speed up their operations even more to avoid the risk of dissolution or merger because they cannot meet the conditions prescribed by the State Bank, especially the strengthen service development in order to shorten the gap with other large banks and improve the bank’s business performance. Clearly, a bank’s success completely depends on its ability to identify the financial services that society is in need of; efficiently and sell them at a competitive price. Therefore, to be able to stand firm in today’s fierce competition, maintain existing market share and expand development in the future, focusing on developing banking services is identified as an important task. Navibank’s focus is to improve business performance and enhance competitiveness in the market.
Thesis: “Development of banking services at Nam Viet Commercial Joint Stock Bank” aims to study the current situation of service development at Nam Viet Joint Stock Commercial Bank and propose some solutions to diversify services to meet the needs of customers. Customer demand is getting better and better.
2. Objectives of the study
The topic focuses on studying the basic theories of commercial banks and banking services as a basis for analyzing and evaluating the current situation of business activities and development of banking services at Navibank, in order to draw out the necessary shortcomings. remedies and causes. From there, propose solutions to develop services at Navibank in the coming time.
3. Research object and research scope
The object of the research is the existing banking services at Navibank and analyze the current situation of providing and trading these services as well as finding out the causes and effects to come up with appropriate development solutions. .
The scope of the research is the business situation and development of banking services at Navibank in the period from 2009 to 2012.
4. Research Methodology
The thesis is based on using descriptive, surveying, synthesizing, statistical, analytical and comparative methods based on existing data during the operation of Navibank, the author’s overall assessment of the factors affecting service development, along with practical experience in work to identify the current situation and offer appropriate solutions for the development of banking services at Navibank.
5. Meaning of the topic
With the assessment of the current situation of operation and service development of Navibank, as well as finding out the causes of the shortcomings that need to be resolved, a number of banking services associated with the current operational reality will be provided; Based on the assessment of the current situation and the solutions proposed by the author, it will help Navibank’s management board to have an overview of the development of banking services in the past time, and at the same time make decisions to improve the situation. improvement and remedial measures to enhance competitiveness in the market
6. Dissertation structure
In addition to the introduction, conclusion, list of references, list of acronyms, list of tables, the thesis consists of 3 chapters:
– Chapter 1: General issues about commercial banks and banking services
– Chapter 2: The situation of developing banking services at Nam Viet Commercial Joint Stock Bank
– Chapter 3: Some solutions to develop banking services at Nam Viet Joint Stock Commercial Bank.