Headquartered in Hanoi City, operating term is 99 years, charter capital is
3,000 billion VND.
On June 4, 2013, the Governor of the State Bank of Vietnam signed License No. 166/GP-NHNN allowing the establishment of the Cooperative Bank of Vietnam.
On July 9, 2013, at the ceremony to summarize 12 years of implementing Directive 57-CT/TW of the Politburo on consolidating, perfecting and developing the People's Credit Fund system, the Cooperative Bank of Vietnam held an Opening Ceremony.
On January 23, 2014, the Governor of the State Bank of Vietnam issued Circular No. 03/2019/TT-NHNN regulating the Fund for ensuring the safety of the People's Credit Fund system.
On March 31, 2015, the Governor of the State Bank issued Circular 04/2020/TT-NHNN regulating People's Credit Funds.
On June 17, 2016, the Governor of the State Bank of Vietnam issued Circular 09/2021/TT-NHNN amending and supplementing a number of articles of Circular 31/2012/TT-NHNN dated November 26, 2012 of the Governor of the State Bank of Vietnam regulating the Cooperative Bank of Vietnam.
In late 2017 and early 2018, with the approval of the Governor of the State Bank of Vietnam to establish 5 branches including: Yen Bai, Ha Tinh, Bac Giang, Gia Lai and Tay Ninh, the Cooperative Bank of Vietnam held the opening ceremony of the above branches and increased the total number of branches of the Cooperative Bank of Vietnam to 32 branches.
On October 2, 2018, the Governor of the State Bank of Vietnam issued Directive No. 06/CT-NHNN on rectifying, strengthening prevention and combating of violations of the law to ensure security and safety of operations in the People's Credit Fund system.
Co-opBank Bac Ninh has continuously expanded its cooperative relations with partners of all economic sectors, focusing on expanding cooperative relations with corporations and large enterprises, while also paying attention to non-state-owned enterprises, small and medium enterprises. It can be affirmed that with the right customer strategy, Co-opBank - Bac Ninh Branch is truly a reliable address for enterprises of all economic and scientific and technological sectors.
2.2.2. Organizational structure
2.2.2.1 Structure
Diagram 2.1: Organizational structure chart of Co-opBank Bac Ninh
Source: Organization - Administration Department, Co-opBank Bac Ninh
2.2.2.2 Department functions and tasks
Board of Directors
Responsible for organizing, directing, and implementing the Bank's tasks, and at the same time managing, deciding, examining, and urging employees under his/her authority to properly implement the regulations, policies, and guidelines of the State as well as of the Vietnam Cooperative Bank, and being responsible for the business performance of the Branch as well as related issues.
Treasury Currency Room
Is the professional department that manages the safety of treasury and cash according to the regulations of the State Bank and the Cooperative Bank of Vietnam.
Advance and collect money for transaction offices inside and outside the counter, collect and pay cash for businesses with large cash receipts and disbursements and according to a certain level in each period of the Vietnam Cooperative Bank.
Administrative Department
The Administrative Department is a professional department that carries out the work of organizing staff and training at the Branch in accordance with the policies of the State and the regulations of the Cooperative Bank of Vietnam. It carries out administrative and office work to serve business activities at the Branch, and carries out the work of protecting, securing and protecting the Branch.
Corporate Customer Service
As one of the departments that plays an important role in the Bank with the function of directly dealing with customers who are businesses. Performing credit-related operations, managing credit-related products, managing credit products in accordance with the current regime, regulations and instructions of the Vietnam Cooperative Bank.
Directly advertise, market, introduce and sell products and services for businesses.
Transaction Accounting Department – Computer
Responsible for performing direct transactions with customers, operations and tasks related to financial management and internal spending at the branch.
Provide banking services related to payment operations, process and account for transactions. Manage and be responsible for the transaction system on the machine, manage cash funds for each transaction officer.
Responsible for directly managing the Branch's computer network system.
Retail Department
Directly dealing with customers who are micro enterprises with revenue under 20 billion VND and individual customers. Performing credit-related operations, managing credit-related products, managing credit products in accordance with current regulations and guidelines of the Vietnam Cooperative Bank.
Focal point for all operations related to lending and retail customer services throughout the Branch.
Directly advertise, market, introduce and sell products and services to micro-businesses and individuals.
Transaction offices
Has the function of directly dealing with all customers, both businesses and individuals. Performs operations related to credit, transaction accounting, treasury currency for customers in each district with transaction offices in accordance with the current regulations and guidelines of the Vietnam Cooperative Bank.
2.3 Business performance at the Cooperative Bank of Vietnam, Bac Ninh Branch, period 2018 - 2020.
The period 2018 - 2020 is a period when the Vietnamese economy has many changes, the health of the Vietnamese banking system has improved, but competition is increasingly fierce. Interest rates continue to decrease, the ability to repay debts of some customers is weakened, causing many risks to the Bank's operations.
However, with clear strategic direction from the Board of Directors of Vietnam Cooperative Bank in general and the Director of Bac Ninh Cooperative Bank Branch, specific goals, action plans and flexible response scenarios have helped the Branch achieve positive results such as:
- The branch has continued to maintain and be consistent in the goal of building a healthy balance sheet with high liquidity and capital safety, fully meeting the requirements of the Cooperative Bank of Vietnam and the State Bank.
- Actively and continuously handle collection and provision for outstanding overdue debts.
- Deploy new distribution channel business models and actively prepare for the application of Basel II regulations on capital standards.
- The business performance of the Branch is shown through basic indicators.
2.3.1 Capital mobilization
With the diversification of deposit products, bringing many benefits to depositors
money, the total mobilized capital of the Vietnam Cooperative Bank, Bac Ninh Branch has always grown over the years. The capital mobilization activities of the Branch in the period of 2018-2020 have achieved certain achievements with a fairly high growth rate. To achieve this result, the Branch has built and flexibly implemented solutions such as: Flexible interest rate policy, Capital mobilization products combined with promotional forms, Advertising campaigns, applying strategic customer policies.
Table 2.1: Capital mobilization situation of Vietnam Cooperative Bank, Bac Ninh Branch in the period 2018-2020
Unit: Billion VND
Content
2018 | 2019 | 2020 | ||||
Number money | Ratio weight | Number money | Ratio weight | Number money | Ratio weight | |
Total source capital | 1,602 | 1,740 | 2,398 | |||
Over time | ||||||
- Term | 1,312 | 79.32% | 1,260 | 75.90% | 1,859 | 77.52% |
- No Term | 290 | 20.68% | 480 | 24.10% | 539 | 22.48% |
By subject | ||||||
- Population | 935 | 59.56% | 1,133 | 63.43% | 1,373 | 57.26% |
- Economic organization | 667 | 40.44% | 607 | 36.57% | 1,025 | 42.74% |
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![Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
zt2i3t4l5ee
zt2a3gsnon-credit services, joint stock commercial bank
zt2a3ge
zc2o3n4t5e6n7ts
At that time, the Branch had to set aside a provision for credit risks, which reduced the Branchs income.
Chart 2.2. Pre-tax profit of BIDV Tien Giang in the period 2011-2015
Unit: Billion VND
140
120
100
80
60
40
20
0
63.3
80.34
89.29
110.08
131.99
2011 2012 2013 2014 2015
Profit before tax
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, through chart 2.2, it can be seen that BIDV Tien Giangs profit is still increasing continuously, and its operating efficiency is currently leaking. This is a contribution of non-credit services, and this service segment will be increasingly focused on growth by BIDV Tien Giang to ensure the highest profit safety because credit activities have many potential risks. At the same time, focusing on developing non-credit services is consistent with one of the contents of restructuring the financial activities of credit institutions in the project Restructuring the system of credit institutions in the period 2011-2015 approved by the Prime Minister in Decision No. 254/QD-TTg dated March 1, 2012 [14]: Gradually shifting the business model of commercial banks towards reducing dependence on credit activities and increasing income from non-credit services.
2.2. Current status of non-credit service development at BIDV Tien Giang.
2.2.1. BIDV Tien Giang has deployed the development of non-credit services in recent times.
Along with the development of the Head Office, BIDV Tien Giangs products and services are constantly improved and deployed in a diverse manner to ensure provision for many different customer groups in the area: individual customers, corporate customers, and financial institutions. Typical services are as follows: Payment services, treasury services, guarantee services, card services, trade finance, other services: Western Union, insurance commissions, consulting services, foreign exchange derivatives trading, e-banking services,...
2.2.1.1. Payment services:
In accordance with the Prime Ministers Project to promote non-cash payments in Vietnam [15], banks in Tien Giang province have continuously developed payment services to reduce customers cash usage habits through card services and electronic banking services such as: salary payment through accounts, focusing on developing card acceptance points, developing multi-purpose cards, paying social insurance by transfer, paying bills through banks, etc.
Chart 2.3. Net income from payment services in the period 2011-2015
Unit: Million VND
6000
5000
4000
3000
2000
1000
0
3922 4065
4720 5084 5324
2011 2012 2013 2014 2015
Net income from payment services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Along with the technological development of the entire system, BIDV Tien Giang has a payment system with a fairly stable transaction processing speed, bringing many conveniences to customers. The results of observing chart 2.3 show that the income from payment services that the Branch has achieved has grown over the years but the speed is not high and the products are not outstanding compared to other banks. Domestic payment products such as: Online bill payment, electricity bills, water bills, insurance premiums, cable TV bills, telecommunications fees, airline tickets, etc. bring many conveniences to customers. Regarding international payment, this is an indispensable activity for foreign economic activities, BIDV Tien Giang is providing international payment methods for small enterprises producing agriculture, aquatic food and seafood that have credit relationships with banks in industrial parks in Tien Giang province such as: money transfer, collection, L/C payment.
2.2.1.2. Treasury services:
BIDV Tien Giang always focuses on ensuring treasury safety and currency security, always complies with legal regulations, and minimizes risks in operations such as: counting and collecting money from customers, receiving and delivering internal transactions, collecting from the State Bank (SBV) or other credit institutions, receiving ATM funds, bundling money, etc. BIDV Tien Giangs treasury service management department is always fully equipped with modern machinery and equipment such as: money transport vehicles, fire prevention tools, money counters, money detectors, magnifying glasses, etc. to ensure absolute safety in treasury operations, immediately identifying real and fake money and other risks that may affect people and assets of the bank and customers. In addition, implementing regulation 2480/QC dated October 28, 2008 between the State Bank of Tien Giang province and the Provincial Police on coordination in the fight against counterfeit money, in the 3-year review of implementation, BIDV Tien Giang discovered, seized and submitted to the State Bank of Tien Giang province 475 banknotes of various denominations and was commended by the Provincial Police and the State Bank of Tien Giang province [17].
Chart 2.4. Net income from treasury services in the period 2011-2015
Unit: Million VND
350
300
250
200
150
100
50
0
105 122
309 289 279
2011 2012 2013 2014 2015
Net income from treasury services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, as shown in Figure 2.4, income from treasury operations is not high and fluctuates. Specifically, in the period 2011-2013, net income increased and increased most sharply in 2013, then in the period 2013-2015, there was a downward trend. This fluctuation is due to the fact that fees collected from treasury services are often very low and can even be waived to attract customers to use other services.
2.2.1.3. Guarantee and trade finance services:
BIDV Tien Giang, thanks to the advantages of the province and the favorable location of the Branch, has continuously focused on developing income from guarantee services and trade finance.
Chart 2.5. Net income from guarantee and trade finance services in the period 2011-2015
Unit: Million VND
14000
12000
10000
8000
6000
4000
2000
0
5193 5695
2742 3420
8889
3992
11604 12206
5143 5312
2011 2012 2013 2014 2015
Net income from guarantee services Net income from Trade Finance
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.5, we can see that BIDV Tien Giangs income from guarantee services and trade finance has grown over the years. The reason is: Among BIDV Tien Giangs corporate customers, the construction industry is the industry with the highest proportion of customers after the trading industry, this is a group of customers with potential to develop guarantee services. The second group of customers is corporate customers in the fields of agricultural production, livestock and seafood processing with high import and export turnover in the area.
are the target of trade finance development. In addition, BIDV Tien Giang also focuses on continuously developing these customer groups to increase revenue for many other products and services in the future.
2.2.1.4. Card and POS services:
As a service that BIDV Tien Giang has recently developed strongly, it can be said that this is a very potential market and has the ability to develop even more strongly in the future. Card services with outstanding advantages such as fast payment time, wide payment range, quite safe, effective and suitable for the integration trend and the Project to promote non-cash payments in Vietnam. Cards have become a modern and popular payment tool. BIDV Tien Giang early identified that developing card services is to expand the market to people in society, create capital mobilized from card-opened accounts, contribute to diversifying banking activities, enhance the image of the bank, bring the BIDV Tien Giang brand to people as quickly and easily as possible. BIDV Tien Giang is currently providing card types such as: credit cards (BIDV MasterCard Platinum, BIDV Visa Gold Precious, BIDV Visa Manchester United, BIDV Visa Classic), international debit cards (BIDV Ready Card, BIDV Manu Debit Card), domestic debit cards (BIDV Harmony Card, BIDV eTrans Card, BIDV Moving Card, BIDV-Lingo Co-branded Card, BIDV-Co.opmart Co-branded Card). These cards can be paid via POS/EDC or on the ATM system. In addition, with debit cards, customers can not only withdraw money via ATMs but also perform utilities such as mobile top-up, online payment, money transfer,... through electronic banking services.
In order to attract customers with card services, BIDV Tien Giang has continuously increased the installation of ATMs. As of December 31, 2015, BIDV Tien Giang has 23 ATMs combined with 7 ATMs in the same system of BIDV My Tho, so the number of ATMs is quite large, especially in the center of My Tho City, but is not yet fully present in the districts. Basic services on ATMs such as withdrawing money, checking balances, printing short statements,... BIDV ATMs accept cards from banks in the system.
Banknetvn and Smartlink, cards branded by international card organizations Union Pay (CUP), VISA, MasterCard and cards of banks in the Asian Payment Network. From here, cardholders can make bill payments for themselves or others at ATMs, by simply entering the subscriber number or customer code, booking code that service providers notify and make bill payments.
Chart 2.6. Net income from card services in the period 2011-2015
Unit: Million VND
3500
3000
2500
2000
1500
1000
500
0
687
1023
1547
2267
3104
2011 2012 2013 2014 2015
Net income from card services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.6, it can be seen that BIDV Tien Giangs card service income is constantly growing because the Branch focuses on developing businesses operating in industrial parks, which are the source of customers for salary payment products, ATMs, BSMS. Specifically, there are companies such as Freeview, Quang Viet, Dai Thanh, which are businesses with a large number of card openings at the Branch, contributing to the increase in card service fees [25].
Table 2.6. Number of ATMs and POS machines in 2015 of some banks in Tien Giang area.
Unit: Machine
STT
Bank name
Number of ATMs
Cumulative number of ATM cards
POS machine
1
BIDV Tien Giang
23
97,095
22
2
BIDV My Tho
7
21,325
0
3
Agribank Tien Giang
29
115,743
77
4
Vietinbank Tien Giang
16
100,052
54
5
Dong A Tien Giang
26
97,536
11
6
Sacombank Tien Giang
24
88,513
27
7
Vietcombank Tien Giang
15
61,607
96
8
Vietinbank - Tay Tien Giang Branch
6
46,042
38
(Source: 2015 Banking Activity Data Report of the General and Internal Control Department of the Provincial State Bank [21])
Through table 2.6, the author finds that the number of ATMs of BIDV Tien Giang is not much, ranking fourth after Agribank Tien Giang, Dong A Tien Giang, Sacombank Tien Giang. The number of POS machines of BIDV Tien Giang is very small, only higher than Dong A Tien Giang and BIDV My Tho in the initial stages of merging the BIDV system. Besides, BIDV Tien Giang has a high number of cards increasing over the years (table 2.7) but the cumulative number of cards issued up to December 31, 2015 is still relatively low compared to Agribank, Vietcombank, Dong A (table 2.6).
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Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
zt2i3t4l5ee
zt2a3gsnon-credit services, joint stock commercial bank
zt2a3ge
zc2o3n4t5e6n7ts
At that time, the Branch had to set aside a provision for credit risks, which reduced the Branch's income.
Chart 2.2. Pre-tax profit of BIDV Tien Giang in the period 2011-2015
Unit: Billion VND
140
120
100
80
60
40
20
0
63.3
80.34
89.29
110.08
131.99
2011 2012 2013 2014 2015
Profit before tax
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, through chart 2.2, it can be seen that BIDV Tien Giang's profit is still increasing continuously, and its operating efficiency is currently leaking. This is a contribution of non-credit services, and this service segment will be increasingly focused on growth by BIDV Tien Giang to ensure the highest profit safety because credit activities have many potential risks. At the same time, focusing on developing non-credit services is consistent with one of the contents of restructuring the financial activities of credit institutions in the project "Restructuring the system of credit institutions in the period 2011-2015" approved by the Prime Minister in Decision No. 254/QD-TTg dated March 1, 2012 [14]: "Gradually shifting the business model of commercial banks towards reducing dependence on credit activities and increasing income from non-credit services".
2.2. Current status of non-credit service development at BIDV Tien Giang.
2.2.1. BIDV Tien Giang has deployed the development of non-credit services in recent times.
Along with the development of the Head Office, BIDV Tien Giang's products and services are constantly improved and deployed in a diverse manner to ensure provision for many different customer groups in the area: individual customers, corporate customers, and financial institutions. Typical services are as follows: Payment services, treasury services, guarantee services, card services, trade finance, other services: Western Union, insurance commissions, consulting services, foreign exchange derivatives trading, e-banking services,...
2.2.1.1. Payment services:
In accordance with the Prime Minister's Project to promote non-cash payments in Vietnam [15], banks in Tien Giang province have continuously developed payment services to reduce customers' cash usage habits through card services and electronic banking services such as: salary payment through accounts, focusing on developing card acceptance points, developing multi-purpose cards, paying social insurance by transfer, paying bills through banks, etc.
Chart 2.3. Net income from payment services in the period 2011-2015
Unit: Million VND
6000
5000
4000
3000
2000
1000
0
3922 4065
4720 5084 5324
2011 2012 2013 2014 2015
Net income from payment services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Along with the technological development of the entire system, BIDV Tien Giang has a payment system with a fairly stable transaction processing speed, bringing many conveniences to customers. The results of observing chart 2.3 show that the income from payment services that the Branch has achieved has grown over the years but the speed is not high and the products are not outstanding compared to other banks. Domestic payment products such as: Online bill payment, electricity bills, water bills, insurance premiums, cable TV bills, telecommunications fees, airline tickets, etc. bring many conveniences to customers. Regarding international payment, this is an indispensable activity for foreign economic activities, BIDV Tien Giang is providing international payment methods for small enterprises producing agriculture, aquatic food and seafood that have credit relationships with banks in industrial parks in Tien Giang province such as: money transfer, collection, L/C payment.
2.2.1.2. Treasury services:
BIDV Tien Giang always focuses on ensuring treasury safety and currency security, always complies with legal regulations, and minimizes risks in operations such as: counting and collecting money from customers, receiving and delivering internal transactions, collecting from the State Bank (SBV) or other credit institutions, receiving ATM funds, bundling money, etc. BIDV Tien Giang's treasury service management department is always fully equipped with modern machinery and equipment such as: money transport vehicles, fire prevention tools, money counters, money detectors, magnifying glasses, etc. to ensure absolute safety in treasury operations, immediately identifying real and fake money and other risks that may affect people and assets of the bank and customers. In addition, implementing regulation 2480/QC dated October 28, 2008 between the State Bank of Tien Giang province and the Provincial Police on coordination in the fight against counterfeit money, in the 3-year review of implementation, BIDV Tien Giang discovered, seized and submitted to the State Bank of Tien Giang province 475 banknotes of various denominations and was commended by the Provincial Police and the State Bank of Tien Giang province [17].
Chart 2.4. Net income from treasury services in the period 2011-2015
Unit: Million VND
350
300
250
200
150
100
50
0
105 122
309 289 279
2011 2012 2013 2014 2015
Net income from treasury services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, as shown in Figure 2.4, income from treasury operations is not high and fluctuates. Specifically, in the period 2011-2013, net income increased and increased most sharply in 2013, then in the period 2013-2015, there was a downward trend. This fluctuation is due to the fact that fees collected from treasury services are often very low and can even be waived to attract customers to use other services.
2.2.1.3. Guarantee and trade finance services:
BIDV Tien Giang, thanks to the advantages of the province and the favorable location of the Branch, has continuously focused on developing income from guarantee services and trade finance.
Chart 2.5. Net income from guarantee and trade finance services in the period 2011-2015
Unit: Million VND
14000
12000
10000
8000
6000
4000
2000
0
5193 5695
2742 3420
8889
3992
11604 12206
5143 5312
2011 2012 2013 2014 2015
Net income from guarantee services Net income from Trade Finance
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.5, we can see that BIDV Tien Giang's income from guarantee services and trade finance has grown over the years. The reason is: Among BIDV Tien Giang's corporate customers, the construction industry is the industry with the highest proportion of customers after the trading industry, this is a group of customers with potential to develop guarantee services. The second group of customers is corporate customers in the fields of agricultural production, livestock and seafood processing with high import and export turnover in the area.
are the target of trade finance development. In addition, BIDV Tien Giang also focuses on continuously developing these customer groups to increase revenue for many other products and services in the future.
2.2.1.4. Card and POS services:
As a service that BIDV Tien Giang has recently developed strongly, it can be said that this is a very potential market and has the ability to develop even more strongly in the future. Card services with outstanding advantages such as fast payment time, wide payment range, quite safe, effective and suitable for the integration trend and the Project to promote non-cash payments in Vietnam. Cards have become a modern and popular payment tool. BIDV Tien Giang early identified that developing card services is to expand the market to people in society, create capital mobilized from card-opened accounts, contribute to diversifying banking activities, enhance the image of the bank, bring the BIDV Tien Giang brand to people as quickly and easily as possible. BIDV Tien Giang is currently providing card types such as: credit cards (BIDV MasterCard Platinum, BIDV Visa Gold Precious, BIDV Visa Manchester United, BIDV Visa Classic), international debit cards (BIDV Ready Card, BIDV Manu Debit Card), domestic debit cards (BIDV Harmony Card, BIDV eTrans Card, BIDV Moving Card, BIDV-Lingo Co-branded Card, BIDV-Co.opmart Co-branded Card). These cards can be paid via POS/EDC or on the ATM system. In addition, with debit cards, customers can not only withdraw money via ATMs but also perform utilities such as mobile top-up, online payment, money transfer,... through electronic banking services.
In order to attract customers with card services, BIDV Tien Giang has continuously increased the installation of ATMs. As of December 31, 2015, BIDV Tien Giang has 23 ATMs combined with 7 ATMs in the same system of BIDV My Tho, so the number of ATMs is quite large, especially in the center of My Tho City, but is not yet fully present in the districts. Basic services on ATMs such as withdrawing money, checking balances, printing short statements,... BIDV ATMs accept cards from banks in the system.
Banknetvn and Smartlink, cards branded by international card organizations Union Pay (CUP), VISA, MasterCard and cards of banks in the Asian Payment Network. From here, cardholders can make bill payments for themselves or others at ATMs, by simply entering the subscriber number or customer code, booking code that service providers notify and make bill payments.
Chart 2.6. Net income from card services in the period 2011-2015
Unit: Million VND
3500
3000
2500
2000
1500
1000
500
0
687
1023
1547
2267
3104
2011 2012 2013 2014 2015
Net income from card services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.6, it can be seen that BIDV Tien Giang's card service income is constantly growing because the Branch focuses on developing businesses operating in industrial parks, which are the source of customers for salary payment products, ATMs, BSMS. Specifically, there are companies such as Freeview, Quang Viet, Dai Thanh, which are businesses with a large number of card openings at the Branch, contributing to the increase in card service fees [25].
Table 2.6. Number of ATMs and POS machines in 2015 of some banks in Tien Giang area.
Unit: Machine
STT
Bank name
Number of ATMs
Cumulative number of ATM cards
POS machine
1
BIDV Tien Giang
23
97,095
22
2
BIDV My Tho
7
21,325
0
3
Agribank Tien Giang
29
115,743
77
4
Vietinbank Tien Giang
16
100,052
54
5
Dong A Tien Giang
26
97,536
11
6
Sacombank Tien Giang
24
88,513
27
7
Vietcombank Tien Giang
15
61,607
96
8
Vietinbank - Tay Tien Giang Branch
6
46,042
38
(Source: 2015 Banking Activity Data Report of the General and Internal Control Department of the Provincial State Bank [21])
Through table 2.6, the author finds that the number of ATMs of BIDV Tien Giang is not much, ranking fourth after Agribank Tien Giang, Dong A Tien Giang, Sacombank Tien Giang. The number of POS machines of BIDV Tien Giang is very small, only higher than Dong A Tien Giang and BIDV My Tho in the initial stages of merging the BIDV system. Besides, BIDV Tien Giang has a high number of cards increasing over the years (table 2.7) but the cumulative number of cards issued up to December 31, 2015 is still relatively low compared to Agribank, Vietcombank, Dong A (table 2.6).
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Improving business efficiency of Vietnam Technological and Commercial Joint Stock Bank - 2
Source: Business performance report of Vietnam Cooperative Bank, Bac Ninh Branch in 2018, 2019, 2020
With the recovery of the economy, the timely direction of the board of directors and the efforts of all staff, the Cooperative Bank of Vietnam - Bac Ninh Branch has achieved remarkable achievements in recent years. In 2018, the total mobilization of the branch reached 1,602 billion VND, in 2019 it increased by 8.61%% to 138 billion VND, by 2020, this figure was 2,398 billion VND, an increase of up to 37.8%. To achieve this result, the Cooperative Bank of Vietnam - Bac Ninh Branch has maintained a competitive interest rate policy and has constantly proactively built suitable products, key incentive programs for customer segments with flexible interest rates, promoting brand advantages, plus the mechanism
internal incentives, strengthening sales force and customer care skills to increase the scale of mobilization at transaction offices. In the deposit structure, the large proportion is term deposits, always accounting for more than 75% of total mobilized capital. Non-term deposits are usually payment deposits of enterprises. Term deposits to receive higher interest rates are often applied to private customers. Term deposits accounting for a large proportion will create favorable conditions for the Branch to implement capital regulation with a specific capital purchase and sale mechanism with the Vietnam Cooperative Bank, helping to be proactive in lending sources while increasing business profits.
2.3.2 Lending and debt collection
Table 2.2: Lending and debt collection situation of Vietnam Cooperative Bank, Bac Ninh Branch, 2018-2020 period
Unit: Billion VND
Year
2018 | 2019 | 2020 | |
Loan Sales | 1,560 | 1,659 | 1,883 |
Outstanding Loans | 1,490 | 1,583 | 1,751 |
Debt collection turnover | 1,463 | 1,492 | 1,450 |
Overdue debt | 14.62 | 13.45 | 13.23 |
Bad debt | 14.62 | 13.45 | 13.23 |
Source: Business results report of Bac Ninh Branch in 2018, 2019, 2020
In the period 2018-2020, lending turnover tended to increase, in 2018, the Bank's lending turnover was 1,560 billion VND, in 2019 it reached 1,659 billion VND, an increase of 99 billion VND, equivalent to an increase of 6.34%. In 2020, the Bank's lending turnover increased sharply to 1,883 billion VND, an increase of 124 billion VND, equivalent to an increase of 20.13% and up. In 2020, the Branch made efforts to diversify its product portfolio and promote sales, so customer lending turnover increased compared to previous years and lending turnover focused mainly on the individual and household customer segment.
Along with lending, the Bank also focuses on debt collection, because debt collection is an important task in credit operations. If the Bank wants to operate effectively, it must not only focus on increasing loan sales, but also pay special attention to debt collection to preserve capital and avoid loss. Although debt collection is not a factor that directly reflects the effectiveness of the Bank's credit operations, it is a factor that demonstrates the Bank's ability to analyze, evaluate, and check whether the Bank's customers are good or not. Timely and complete debt collection is a success in credit operations because it shows that the Bank has lent to the right subjects, and that customers use capital for the right purpose and effectively. Through the data table
2.2 shows that the branch's debt collection revenue is growing well, commensurate with its loan revenue.
Overdue debt and bad debt are always issues of particular concern to banks, because in the current unstable monetary business environment, there are many potential risks. Risks can come from customers, the bank itself or from objective causes such as natural disasters, war, etc. Therefore, overdue debt and bad debt are inevitable and no bank can avoid them. Therefore, banks always seek measures to prevent and limit the occurrence of overdue debt and bad debt to the lowest level. Along with the growth of sales, overdue debt and bad debt also tend to increase. In 2018, bad debt was 14.62 billion VND, in 2019 it was 13.45 billion VND, in 2020 this figure was 13.23 billion.
2.3.3 Business results
Table 2.3: Business performance of Vietnam Cooperative Bank, Bac Ninh Branch in the period 2018-2020
Unit: Million VND
Year
2018 | 2019 | 2020 | |
Interest income | 144,039 | 150,483 | 169,271 |
Non-interest income | 8,308 | 11,000 | 16,836 |
Profit from business activities | 152,347 | 161,483 | 186,107 |
Source: Business performance report of Cooperative Bank of Vietnam, Bac Ninh Branch in 2018, 2019, 2020
Through table 2.3, it can be seen that credit activities are very important in the business activities of the Bank. Interest income always accounts for a very high proportion. Credit activities are an important foundation and the largest source of income.