What factors affect? and the level of influence of the factors on interest rate risk management at Vietnam Joint Stock Commercial Bank for Industry and Trade?.
What is the solution to
Strengthening governance
interest rate risk
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Current Status of Control, Monitoring and Reporting of Interest Rate Risk
in
Bank
Vietnam Joint Stock Commercial Bank for Industry and Trade in the coming time?.
3. Research objectives
Systematize theoretical issues on interest rates and interest rate risk management in commercial banking operations.
Refer to the experience of other countries in managing interest rate risk.
commercial banks, from which lessons can be drawn for the Bank.
Vietnam Joint Stock Commercial Bank for Industry and Trade.
Assessment of the current status of interest rate risk management of the Bank
Vietnam Joint Stock Commercial Bank for Industry and Trade in the period 2011-2019, thereby analyzing the results achieved, limitations and causes.
Identifying factors affecting interest rate risk management at Vietnam Joint Stock Commercial Bank for Industry and Trade.
Proposing solutions to strengthen interest rate risk management of Vietnam Joint Stock Commercial Bank for Industry and Trade in the coming time.
4. Subject and scope of the thesis research
Research object
The thesis focuses on studying interest rate risk and interest rate risk management in the business activities of commercial banks.
Scope of the thesis
Regarding scientific content: Research on interest rate risk and interest rate risk management in capital mobilization and credit granting activities of commercial banks.
About space: Thesis research on Vietnam Joint Stock Commercial Bank for Industry and Trade.
Research period: Current situation from 2011 - 2019, proposed orientation and solutions for implementation in the period 2020 - 2025.
5. Research methods
To solve the assigned tasks, during the thesis implementation, the author used the following methods:
Methodology of dialectical materialism, historical materialism and
System method
System: The study of management
interest rate risk
Vietnam Joint Stock Commercial Bank for Industry and Trade is implemented a
synchronously linked to specific circumstances, conditions and stages. The contents of interest rate risk management for Vietnam Joint Stock Commercial Bank for Industry and Trade are considered in close relationship with each other in both space and time.
Statistical method: The author uses appropriate statistical data to analyze the current status of interest rate risk management of Vietnam Joint Stock Commercial Bank for Industry and Trade.
Synthetic analysis method: Based on the analysis of each specific content, the author gives general assessments on the current status of interest rate risk management of Vietnam Joint Stock Commercial Bank for Industry and Trade.
Comparison and contrast method: Interest rate risk management of Vietnam Joint Stock Commercial Bank for Industry and Trade is considered based on comparison between stages, as well as comparison with the current status of interest rate risk management of domestic and international commercial banks.
Quantitative method: For the quantitative approach, a survey method with a pre-designed Questionnaire was used to collect opinions from officers and employees working at the bank.
Investigation method with questionnaire tool:
To develop the questionnaire, the author conducted preliminary research through qualitative research based on the study of general theoretical issues on factors affecting interest rate risk management, models drawn from previous studies in the world and in the country. At the same time, combined with discussions and consultations with experts, those with experience in the field of bank interest rate risk management to establish a questionnaire to conduct the next official research.
The questionnaire was built and designed with many items based on the Likert scale.
5 points, ranging from “strongly disagree” to “strongly agree”. First, the Items were
included in the questionnaire as a basis for later factor analysis were extracted from previous studies (David, 1989; Chan & Lu, 2004; Fishbein, 1989;
…) Then, the items will be selected and reorganized to have a questionnaire design that is suitable for the content, research purpose as well as the local research subjects. At the same time, the questionnaire will be piloted on 20 experts working at the bank using the direct interview method to have adjustments in content and language to be more suitable, so that the research subjects can easily access when conducting the research.
The questionnaire is designed in 2 parts. In the first part, the respondents will be asked to answer information related to their personal characteristics (gender, age, income, etc.) and some information related to their work at the bank. In the second part, the respondents will be asked to give their opinions (agree/disagree) about the items included in the questionnaire based on 5 levels of the Likert scale.
Survey sampling method:
According to the study of Hair et al. (1998) for factor analysis
To explore EFA, the sample size must be at least 5 times the total number of observed variables in the scales (an observed variable needs 5 observations corresponding to 5 respondents). The questionnaire of this study includes 32 observations used in factor analysis. Therefore, the minimum sample size needed is 32*5 = 160 observations.
For multiple regression, according to Tabachnick and Fidell, the minimum sample size is calculated by the formula: n>= 8m + 50 (m is the number of independent variables). In this study, there are 06 independent variables, so the minimum sample size is 50 + 8*6 = 98 observations.
According to actual conditions, to be able to collect data well, the author chose a non-probability sample in a convenient manner.
Data processing method:
In addition to descriptive statistical methods, the author makes regression framework
analysis. AMOS data.
whether the investigation is handled
SPSS and software
Data collection
+ Secondary sources of documents include: collected from financial reports of
Vietnam Joint Stock Commercial Bank for Industry and Trade and other Banks
Vietnam Joint Stock Commercial Bank 2011-2019
+ Primary data: The data collected on the questionnaire will be statistically analyzed, evaluated and regressed by the author.
6. New contributions of the Thesis.
In theory:
The concept of interest rate risk management, the thesis starts from the original concepts of management, risk management in banking business in textbooks of modern economic researchers, to give a comprehensive concept of interest rate risk management of commercial banks; the content of interest rate risk management is fully presented in the thesis on the following contents: (1) International standards and practices, (2) Recognizing interest rate risk, (3) Analyzing and forecasting interest rate fluctuations, (4) Organizing interest rate risk management, (5) Method of quantifying interest rate risk, (6) QRRRLS tool.
In practice:
Current assessment method:
The thesis uses quite comprehensive and complete methods for evaluation.
governance status
interest rate risk
Joint stock commercial bank
Public Part
Vietnam Joint Stock Commercial Bank for Industry and Trade through scientific analysis: (1) Fully analyze the interest rate risk measurement indicators to see the most complete and realistic picture of risk management at Vietnam Joint Stock Commercial Bank for Industry and Trade, (2) Build and verify a set of scales to evaluate factors affecting interest rate risk management, thereby determining which factors affect interest rate risk management, this is a scientific basis to help bank managers have solutions to better manage interest rate risk. The results of that assessment give
see the level of influence of factors, successes and shortcomings in RRLS management of Vietnam Joint Stock Commercial Bank for Industry and Trade during the research period (2011 - 2019).
Propose new solutions:
+ Develop policies and perfect interest rate risk management processes. When banks develop appropriate policies and management processes, it will have a strong impact on enhancing interest rate risk management.
+ Applying a modern and suitable interest rate forecasting model, this group of solutions is the choice to apply an advanced risk management model in a market economy, suitable for the conditions of interest rate forecasting at Vietnam Joint Stock Commercial Bank for Industry and Trade.
+ Increasing the accuracy in measuring interest rate risk, implementing this group of solutions is the basis for effective interest rate risk management.
In addition, the thesis also proposes a number of solutions and recommendations to the Government and the State Bank of Vietnam. These solutions and recommendations will help the Vietnam Joint Stock Commercial Bank for Industry and Trade to strengthen interest rate risk management in the coming time.
7. Scientific and practical significance of the thesis
Scientific significance: Based on the summary and synthesis, the thesis has systematized, concisely explained and clarified a number of theoretical and practical issues: overview of Commercial Banks, interest rates and interest rate risk management of Banks.
Commercial goods. Besides, the thesis also
Summary
experience about
Interest rate risk management of some commercial banks in some countries around the world, from which valuable experiences can be drawn for reference and applied to interest rate risk management for Vietnam Joint Stock Commercial Bank for Industry and Trade.
Practical significance: The thesis has systematically synthesized and analyzed
Current status of interest rate risk management of Joint Stock Commercial Bank for Industry and Trade
Vietnam's trade in the period 2011 - 2019. Based on the analysis of the results
fruit
achievements, limitations, the thesis also pointed out
cause
limitations
in administration
Interest rate risk of Joint Stock Commercial Bank
Vietnam Joint Stock Commercial Bank for Industry and Trade. Combined with the experience of interest rate risk management of commercial banks in a number of countries around the world, in particular, the thesis has built a scale to analyze factors affecting interest rate risk management and from the survey results, the thesis has also identified factors affecting interest rate risk management at banks. The thesis has selectively systematized the context, viewpoints and socio-economic development goals, general orientation and RRLS management orientation of Vietnam Joint Stock Commercial Bank for Industry and Trade in the period 2020 - 2025. From the research results, the thesis has proposed practical solutions to contribute to strengthening interest rate risk management at Vietnam Joint Stock Commercial Bank for Industry and Trade in the coming time.
8. Structure of the thesis
In addition to the introduction and conclusion, the thesis is structured into 3 chapters:
Chapter 1: Commercial Theory
version
Administration
Bank interest rate risk
Chapter 2: Current status of interest rate risk management of Vietnam Joint Stock Commercial Bank for Industry and Trade
Chapter 3: Interest rate risk management solutions at Vietnam Joint Stock Commercial Bank for Industry and Trade
CHAPTER 1: BASIC THEORY OF INTEREST RATE RISK MANAGEMENT OF COMMERCIAL BANKS
1.1. Bank credit and bank credit interest rates.
1.1.1. Concept of commercial bank
Commercial banks (CBs) are the most important financial intermediary institutions in the economy. Currently, there are many different understandings of CBs:
The Law on Credit Institutions passed by the 12th National Assembly on June 16, 2010 defines: A commercial bank is a type of credit institution that carries out all banking activities and other related business activities with the aim of making profit [V31]; [V23]; [V18].
A credit institution is a type of enterprise established under the provisions of the Law on Credit Institutions and other provisions of law to conduct monetary business, provide banking services with the content of receiving deposits and using deposits to grant credit, and providing payment services through accounts.
The Law on the State Bank defines: Banking activities are monetary business activities and banking services with regular content of receiving deposits and using these amounts to grant credit and provide payment services through accounts [V31]; [V23]; [V18].