different collections like:
+ Information sources provided by customers: collected from related financial reports, field surveys through interviews, inspections, direct contact with employees, checking the status of customers' assets... To collect accurate and complete information from customers is an art of credit workers, it depends on professional qualifications and understanding of socio-economic fields.
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Current Status of Credit Risk Management at Vietnam Bank for Agriculture and Rural Development -
Improving the effectiveness of credit risk management at the Bank for Agriculture and Rural Development - Hanoi Branch - 2 -
Credit risk management of Vietnam Bank for Agriculture and Rural Development - 10 -
Credit risk management of Vietnam Bank for Agriculture and Rural Development - 31 -
Credit risk management according to Basel 2 Agreement at Vietnam Bank for Agriculture and Rural Development - 1
+ External information sources: this is a very rich and objective source of information, which can be exploited from the following channels: from other customers who have relationships with the Bank and also have relationships with customers; from commercial banks in the area, other agricultural banks, from the State Bank; from the market through mass media, newspapers....; from relevant agencies: tax authorities, police, auditors....
In general, to move towards building a unified and
Science, Banks need to speed up the application of information technology,
Set up software to manage customers. Statistics, research, storage
Information from there supplements the analysis and evaluation of customers for future loans.
In fact, the work of collecting information and building data banks on utility risks and losses to serve the construction of quantitative models of utility quality is a task that cannot be completed alone.
It depends not only on the individual efforts of a bank but also on the coordination of all levels, sectors and the support and assistance of the Government.
Nine: Do not rely too much on collateral, but focus on the feasibility of the investment project, financial capacity and the customer's ability to repay the loan. However, choosing a portfolio of collateral is also one of the important factors in credit risk management because when the customer is unable to pay, the collateral is the only source of income.
to compensate for losses, but this recovery depends on many factors such as: the legality of the collateral, the ability to quickly convert the asset. Therefore, choosing which asset to use as collateral is a very important issue, it greatly determines the handling and recovery when there is a risk.
That is : It is necessary to come up with solutions to deal with external factors such as changes in State mechanisms and policies, pressure from implementing customary commitments, and complex developments in the market mechanism.
market, negative impact of asymmetric information.... By regularly updating relevant information from outside, the Bank can control and promptly adjust internal documents when changes arise or proactively build roadmaps to fulfill commitments according to practice.
Eleventh : To spread the risk and minimize the credit risk by diversifying different products and services. Banks should conduct business on many different types of products and services to form a portfolio .
Investment portfolios should be designed so that the total risk of the entire portfolio is limited to the smallest level, which means “not putting all your eggs in one basket”. Banks should also diversify capital mobilization forms, adjust medium and long-term interest rates appropriately, restructure capital investment towards increasing the proportion of medium and long-term loans, reducing the proportion of short-term loans, and developing consumer loans for individuals.
In summary: all the above measures are aimed at improving management capacity.
credit risk management has shifted from breadth to depth in bank credit risk management. In general, the Vietnamese commercial banking system in general and Gia Lam Agricultural and Rural Development Bank in particular are in the early stages of development, needing many innovations and developments to achieve the desired results.
international standards
on banking operations. Research and
old application
Selecting international experiences in banking operations is the shortest way to achieve the goal of improving credit quality.