Credit risk management of Vietnam Bank for Agriculture and Rural Development

In order to achieve the objectives, content and scope of the research, the topic has completed the following main issues:

- Systematizing the basic issues of credit risk management of commercial banks in the market economy, the thesis has clarified the content of credit risk management, subjective and objective factors affecting credit risk management, and indicators reflecting the effectiveness of credit risk management.

- Propose some credit risk management models of the Basel Committee, specifically Basel II, of some banks in Thailand, ANZ and some other related models. On that basis, the thesis draws some lessons on credit risk management for Vietnamese commercial banks.

- Provide an overview of the general business activities and credit activities of the Vietnam Bank for Agriculture and Rural Development in recent years, a commercial bank with the largest credit market share, but with a low bad debt ratio in the Vietnamese commercial banking system.

- Focus on analyzing the current status of credit risk management of Vietnam Bank for Agriculture and Rural Development from the following perspectives: credit management model, credit management policies and mechanisms, debt classification and risk provisioning, and some other related contents.

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- Evaluating the advantages, the thesis argues that credit risk management has made bad debts of the Vietnam Bank for Agriculture and Rural Development tightly controlled, contributing to sustainable profit growth and stable business operations of the Vietnam Bank for Agriculture and Rural Development. Besides, there are a series of limitations, such as unsuitable models, limited staff quality, banking technology applied in credit risk management not meeting requirements, etc. That situation has many subjective causes from the Vietnam Bank for Agriculture and Rural Development itself and its branches and objective causes from the economic environment as well as related management and operating agencies.

- After stating the business operation orientation and credit risk management orientation, the proposed solutions are logical, practical and feasible because they come from overcoming the limitations and subjective causes of the Vietnam Bank for Agriculture and Rural Development, focusing on management and administration, on staff, on technology, strengthening internal control and inspection, etc.

- The proposed recommendations are mainly based on objective reasons, focusing on improving loan guarantee mechanisms, monetary policy management, banking operations management, etc.

Credit risk management is a broad and complex issue, and for the Vietnam Bank for Agriculture and Rural Development, it is even more complex. In the process of conducting the research, the thesis has consulted many related topics and research works, closely following reality and analyzing reality from many different perspectives, with the help of instructors and scientists. However, in limited conditions, it is inevitable that there will be shortcomings and limitations. The author of the thesis would like to sincerely thank the help of scientists, training institutions, friends, agencies, ... as well as sincere comments.

Hopefully, the effective application of the above solutions to improve the credit risk management system will help the Vietnam Bank for Agriculture and Rural Development develop more strongly on the path of integration into the regional and world financial markets.

LIST OF PUBLISHED RESEARCH WORKS OF THE AUTHOR

1. Nguyen Tuan Anh (2005), " Distinguishing between household and individual loans from a legal perspective ", Banking Science Journal, March 2005.

2. Nguyen Tuan Anh (2005), “ Experience in handling foreign commercial debt of the country by BRADY bonds and the problem of handling bad debt of Vietnamese Commercial Banks” , Banking Magazine, March 2005.

3. Nguyen Tuan Anh (2009), “ Reducing lending risks through developing the Agricultural Insurance market in Vietnam”, Banking Magazine, July 2009.

4. Nguyen Tuan Anh (2009), “ The relationship between commercial bank operations and economic growth”, Banking Magazine, September 2009.

5. Nguyen Tuan Anh (2010), “ Capital mobilization of Commercial Banks is bustling”, Financial and Monetary Market Magazine, March 2010.

LIST OF REFERENCES

Vietnamese Documents

1. State Bank of Vietnam (years from 2000 to 2008), Annual Report of State Bank of Vietnam, Hanoi.

2. State Bank of Vietnam (years from 2000 to 2008), Credit Special Report, Inspection Special Report of State Bank of Vietnam, Hanoi.

3. State Bank of Vietnam (2009), Report on monetary policy management and banking activities, 2000 - 2008 and the first 6 months of 2009 ; Hanoi.

4. Bui Thi Kim Ngan (2005), “ Some issues to improve the credit risk management capacity of Vietnamese commercial banks ”, Banking Magazine, (special issue), pp.29-33.

5. State Bank of Vietnam (years from 2002 to 2009), System of legal documents on banking activities , published monthly, Hanoi.

6. Ho Dieu (2002), Banking Management , Statistical Publishing House, Ho Chi Minh City.

7. Le Van Hung (2007), “ Risks in Bank credit activities - viewed from an ethical perspective ”, Banking Magazine, (16), pp.33-35.

8. National Assembly of the Socialist Republic of Vietnam (1998), Law on the State Bank of Vietnam and Law on Credit Institutions , Legal Publishing House, Hanoi.

9. Ministry of Finance (2009), “Bad debt disease of commercial banks” , Finance Magazine (5), pp.20-22,28.

10. National Assembly of the Socialist Republic of Vietnam (2004), Civil Law , Legal Publishing House, Hanoi.

11. Mishkin FS (1999), Money, Banking and Financial Markets , Science and Technology Publishing House, Hanoi.

12. State Bank of Vietnam (1996), Law on the Central Bank, Law on Commercial Banks and Credit Institutions of some countries in the world" , Reference documents for the development of two drafts of the Law on the State Bank of Vietnam and the Law on Credit Institutions, Hanoi.

13. State Bank of Vietnam (2007) “ Proceedings of the workshop on handling bad debts of commercial banks” , Hanoi.

14. Vietnam Bank for Agriculture and Rural Development (years from 1994 to 2010), Annual Report , Hanoi.

15. Vietnam Bank for Agriculture and Rural Development (from 1994 to 2010) Business performance report, Credit activity report , Hanoi.

16. Vietnam Bank for Agriculture and Rural Development (from 1994 to 2010), Credit risk management report , Hanoi.

17. Vietnam Bank for Agriculture and Rural Development (2004), Credit Handbook , Hanoi.

18. Nguyen Van Tien (2003), Assessment and Prevention in Banking Business Risks , Statistical Publishing House, Hanoi.

19. General Statistics Office (years from 2000 to 2010), Statistical Yearbook , Hanoi.

20. State Bank of Vietnam (from 1998 to 2010), Banking Magazine , Hanoi.

21. Banking Association (from 2000 to 2010), Financial Market Magazine

Currency, Hanoi.

22. Banking Academy (from 2000 to 2010), Journal of Banking Training Science, Hanoi.

23. Trinh Thanh Huyen (2007), “For Banks to Reach Out to the Ocean – Treating the Bad Debt Disease of Commercial Banks ”, Finance Magazine, (May) pp.20 – p.28.

24. Rose PS (2004), Commercial Bank Management , Finance Publishing House, Hanoi.

25. Dr. Nguyen Duc Thao (2003), " Current status of credit risks of commercial banks in Vietnam and solutions to prevent and limit them ", Scientific research topic , Hanoi.

26. Tran Dinh Dinh (2008), “ Risk management in banking activities according to international standards, practices and Vietnamese regulations” , Judicial Publishing House, Hanoi.

27. Tran Dinh Dinh (2008), “ International standards and practices on and management of credit activities of Commercial Banks ”, Justice Publishing House, Hanoi.

28. Associate Professor, Dr. Nguyen Van Tien (2010), “ Risk management in banking business”, Statistical Publishing House, Hanoi.

English Documents

29. Hempel GH, Simonson DG (1999), “ Bank Management Text and Cases ”, Johnwiley & Son, Inc, Australia.

30. Thomas P.Fisch (2000) Dictionary of banking terms, Barron's Education, Inc, NY

31. Timothy W. Koch (The Dryden Press, Hinsdale, Illinois, 1988 (first edition), 1992 (second edition), 1995, third edition and 2000, fourth edition), “ Bank Management” ,. University of South Carolina.

32. Anthony Saunders(1999), “ Financial Institutions Management - A Modern Perspective ”. The Mcgraw-Hill / Irwin Series in Finance, Insurance, and Real Estate, Hardcover.

Website

33. www.sbv.gov.vn.

34. www.agribank.com.vn.

35. www.mof.gov.vn.

36. www.bot.gov.tl.

37. Some other websites of commercial banks.