PART 2: RESEARCH CONTENT CHAPTER 1: THEORETICAL AND PRACTICAL BASIS OF MANAGEMENT CREDIT RISK FOR INDIVIDUAL CUSTOMERS 1.1 Overview of credit and credit risk 1.1.1 Credit concept Credit is a traditional activity of credit institutions in general and of commercial banks in particular. Credit ...
Vietinbank – Dong Hai Duong Branch and build credit risk management goals in lending to SMEs at Vietinbank – Dong Hai Duong Branch by 2025 as follows: (i) Ensure that Vietinbank – Dong Hai Duong Branch’s lending activities to SMEs are within the limits of monitorable risks. Specifically: ...
However, due to the lack of uniformity and low effectiveness of legal documents, the information provided by businesses and authorities is mostly inaccurate or even fake. Therefore, to ensure the honesty of information, it is necessary to: - Exploiting information from many different channels. ...
Data. Depending on available resources and Basel 2 compliance goals, each bank must determine an appropriate preparation time. Fourth : For commercial banks with an ineffective risk management system, the Basel 2 compliance process must be a process of completion and gradual compliance on the basis ...
The legal regulation, creating a complete and synchronous legal environment in the field of currency, credit and banking is: Determining the legal status of credit institutions, ensuring the safety of economic and monetary activities, capital markets in the coming time, monetary and credit policies ...
Figure 4.2: Credit approval process (Source: Vietinbank Vinh Long) Credit appraisal : Vietinbank Vinh Long ensures that credit appraisal is carried out in compliance with the regulations of the State Bank during the credit granting process. The credit appraisal results are based on the customers ...
(The number of customers has increased significantly for businesses in the same industry and geographical area). According to international practice and Basel II standards, the calculation of the probability of default PD must also follow a quantification process similar to the process of building ...
Greatly improved due to the improvement of professional expertise, information quality and technology systems. Second: Actively handle overdue debt, bad debt, and debt with signs of risk. The Banks Board of Directors is very concerned about the handling of bad debts, overdue debts, and debts with ...
Third, there are no effective measures to completely resolve potentially risky debts, and there are still some long-standing bad debts that have not been recovered. Some officials have not closely monitored customers cash flows to urge customers to pay their debts. Handling assets for bad debts has ...
LIST OF DRAWINGS, DIAGRAM Diagram 1.1. Loan process for Science and Technology 12 Figure 2.1. Organizational structure model at Vietinbank – Dong Hai Duong Branch 31 Figure 2.2: Structure of SMEs having credit relationships with branches by business lines in 2020 35 Figure 2.2. Loan process for ...
Advantage Compact and simple organizational structure. Fast processing of documents, saving time for customers. Building and implementing a decentralized credit risk management model does not take much effort and time. Disadvantages Work is concentrated in one place, lacking in depth. There ...
5.3. Limitations of the topic and future research directions Firstly , the information collected through surveys is from the customers side, so it is inevitable that customers will provide incorrect information. Second , the issue of adding personal characteristics variables that can affect credit ...
