Banking Operations Accounting Profession - College - Dong Thap Community College

PEOPLE'S COMMITTEE OF DONG THAP PROVINCE

TOWER COMMUNITY COLLEGE

COURSE BOOK

SUBJECT: BANKING OPERATIONS INDUSTRY, PROFESSION: ACCOUNTING

LEVEL: COLLEGE

(Issued with Decision No.:…./QD-CĐCĐ-DT dated… month… year 2017 of the Principal of Dong Thap Community College)

Dong Thap, 2017

COPYRIGHT STATEMENT

This document is a textbook and may be used in its entirety or excerpted for training and reference purposes.

Any other purpose of deviance or use for unfair business purposes will be strictly prohibited .

INTRODUCTION

In a market economy, commercial banks hold a key and important position for all economic sectors. Banking activities are an important link in the smooth movement of the economy. In the cause of innovation of the banking system in general and commercial banks in particular, they have actively contributed to the country's innovation, building and perfecting a market economy in Vietnam with sustainable development. Each basic and specific banking operation must also be carried out in accordance with the regulations of the State Bank, both promoting business factors and at the same time being consistent with the development of an increasingly modern economy towards digital technology.

To meet the teaching requirements of the school, the collective of lecturers of the Accounting - Finance department, the Faculty of Socio-Economics and Humanities of Dong Thap Community College has compiled the course curriculum for COMMERCIAL BANKING BUSINESS based on referring to many documents on banking operations, legal documents being issued by the State for credit institutions to help students practice practical skills in calculating interest on deposits and loans, and understand the regulations of the bank in practice to easily implement them themselves.

In order to provide students with basic knowledge of Banking Operations as well as to meet the requirements of teaching, learning and research of students in the College of Accounting. The author would like to respectfully introduce to students the course syllabus of BANKING OPERATIONS with the following structure:

Chapter 1: Overview of Commercial Banks

Chapter 2: Capital Mobilization Operations of Commercial Banks

Chapter 3: Credit Operations of Commercial Banks

Chapter 4: Other Operations of Commercial Banks

The author has made great efforts in compiling, but it is inevitable that there will be shortcomings in the compilation process. We look forward to receiving sincere comments from readers so that the next reprint of the lecture will be more complete.

Thank you very much.

Dong Thap, May 20, 2017

Editor: Th.s Quach Kieu Trang

INDEX

Page

INTRODUCTION ii

COURSE SYLLABUS................................

CHAPTER 1 1

OVERVIEW OF COMMERCIAL BANKING OPERATIONS 1

1. Overview of Commercial Bank 1

1.1 Concept 1

1.2 Feature 2

2. Capital sources of commercial banks 2

2.1 Equity 2

2.2 Mobilized capital 3

2.3 Borrowed capital 8

3. Balancing the business capital of commercial banks 9

3.1 Capital balance at commercial bank branch level 9

3.2 Capital balance at head office of Commercial Bank 11

4. Practice exercises 11

CHAPTER 2 12

CAPITAL MOBILIZATION BUSINESS OF COMMERCIAL BANKS 12

1. The importance of capital mobilization 12

1.1 For Commercial Banks 12

1.2 For customers 13

2. Capital mobilization activities of commercial banks 13

2.1 Concept 13

2.2 Features 14

2.3 Principle 14

2.4 Forms of capital mobilization at commercial banks 14

3. Capital mobilization operations of commercial banks 18

3.1 Deposit mobilization operations of commercial banks 18

3.2 Capital mobilization through issuance of GTCG 29

4. Practice exercises 33

CHAPTER 3 34

CREDIT BUSINESS OF COMMERCIAL BANKS 34

1. Issues related to credit activities of commercial banks 34

1.1 Basic issues of commercial bank credit 34

1.2 Credit process 49

1.3 Credit Guarantee 54

2. Short-term credit operations 56

2.1 Concept of short-term credit 56

2.2 Short-term credit operations 57

3. Medium and long-term credit operations 64

3.1 Lending operations for investment projects 64

3.2 Financial leasing operations 69

4. Practice exercises 72

CHAPTER 4 74

OTHER BUSINESSES OF COMMERCIAL BANKS 74

1. Investment business 74

2. Foreign exchange business 75

3. Other banking services 77

3.1 Money transfer service 77

3.2 Collection and payment service for goods 80

3.3 Payment order service (payment order payment) 80

3.4 Collection payment service (collection payment) 82

REFERENCES 85

COURSE PROGRAM

Course name: Banking operations Course code: CKT440

Course duration: 40 hours; (Theory: 20 hours; Practice, experiments, discussions, exercises: 18 hours; Test: 2 hours)

I. Position and nature of the subject:

- Position: Banking operations is an elective subject and is taught after completing basic subjects.

- Nature: Banking operations subject equips students with basic knowledge of commercial banking operations and practice basic operations in commercial banks.

II. Course objectives:

- Regarding knowledge: The course equips students with basic knowledge about: Capital operations of commercial banks; capital mobilization operations of commercial banks; issues related to credit activities of commercial banks and credit operations of commercial banks.

- Regarding skills: This subject equips students with the ability to: know how to balance the bank's capital sources for effective and safe business; know the importance of capital mobilization operations of commercial banks; understand where customers' borrowing needs come from and how to determine the amount of money customers need to borrow. Know the types of loans of banks. In addition, students apply the knowledge they have learned to practical work related to the operations of commercial banks and the skills to update information and solve real-life situations at commercial banks.

- On autonomy and responsibility:

+ Be proactive in finding research materials and preparing lessons before coming to class.

+ Have a positive and proactive attitude in the learning process.

+ Do mandatory situational exercises to practice skills, objective and scientific attitudes.

III. Course content:

1. General content and time allocation:

No.

Time (hours)

Chapter name, section

Total

Theory

Discuss,

exercise

Check

Chapter 1: Capital operations of commercial banks

Maybe you are interested!

1.1 Overview of commercial banks 1.2 Capital sources of commercial banks 1.3 Balancing the working capital of commercial banks
2	Chapter 2: Capital mobilization operations of commercial banks 2.1 Importance of capital mobilization 2.2 Capital mobilization activities of commercial banks 2.3 Capital mobilization operations of commercial banks	15	6	8	1
3	Chapter 3: Issues related to credit activities of commercial banks 3.1 Basic issues of bank credit 3.2 Credit process 3.3 Credit Guarantee	6	6
4	Chapter 4: Credit operations of commercial banks 4.1 Short-term credit operations 4.2 Medium and long-term credit operations	13	4	8	1
	Add	40	20	18	2