Current status of credit risk at Saigon Thuong Tin Commercial Joint Stock Bank, Lam Dong branch

MINISTRY OF EDUCATION AND TRAINING

HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY

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GRADUATION THESIS

CURRENT STATUS OF CREDIT RISK AT SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK BRANCH

LAM DONG

Major: BUSINESS ADMINISTRATION

Major: FINANCIAL MANAGEMENT - BANKING

Instructor: Associate Professor, Dr. Nguyen Phu Tu Student: Ho Thanh Cang

Student ID: 1054010975 Class: 10DQTC02

MINISTRY OF EDUCATION AND TRAINING

HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY

GRADUATION THESIS

CURRENT STATUS OF CREDIT RISK AT SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK BRANCH

LAM DONG

Major: BUSINESS ADMINISTRATION

Major: FINANCIAL MANAGEMENT - BANKING

Instructor: Associate Professor, Dr. Nguyen Phu Tu Student: Ho Thanh Cang

Student ID: 1054010975 Class: 10DQTC02

COMMITMENT



I hereby certify that this thesis is entirely my own work. All data used in the thesis are cited and are accurate to the best of my knowledge.

I take responsibility for my research topic.

Student performed by Ho Thanh Cang

THANK YOU



During my time studying at Hutech, my teachers have taught and imparted to me a lot of valuable knowledge and experience in my major, creating a solid foundation for me to confidently step into the real working environment.

I would like to send my sincere and deepest thanks to the Hutech Board of Directors and all the teachers. Especially, Associate Professor, Dr. Nguyen Phu Tu, who directly guided and helped me to carry out and complete my graduation thesis. He has imparted to me a lot of valuable knowledge and experience during my internship so that I can complete this topic well.

During the internship at Saigon Thuong Tin Commercial Joint Stock Bank Lam Dong Branch - Da Lat Transaction Office, I would like to thank Ms. Nguyen Thi Lieu - Head of Da Lat Transaction Office and all the staff in the office for their attention, help and creating favorable conditions for me to work in a real environment, accumulating more working experience for myself.

During the internship, it is inevitable that there will be shortcomings. I look forward to receiving enthusiastic and frank contributions from the Bank's Board of Directors and teachers. This will be a valuable asset to help me improve myself in the future.

I wish everyone good health, luck and success in work and life.

Thank you very much!

SOCIALIST REPUBLIC OF VIETNAM

Independence – Freedom – Happiness

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INTERNSHIP REVIEW

Student's full name: ………………………………………………………….. Student ID: ………………………………………………………….. Course: ………………………………………………………….

1. Internship time

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2. Internship department

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3. Sense of responsibility for work and sense of discipline

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4. Internship results by topic

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5. General comments

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Internship unit

INSTRUCTOR COMMENTS

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Ho Chi Minh City, date….month….year……

Instructor

(sign)

INDEX

INTRODUCTION 1

1. Importance of topic 1

2. Research objective 2

2.1. General objective 2

2.2. Specific objectives 2

3. Research object and scope 2

3.1. Research subject 2

3.2. Scope of research 2

3.2.1. Spatial scope 2

3.2.2. Time scope 2

4. Research method 3

5. Structure of topic 3

CHAPTER L DISCUSSION ON CREDIT RISK 4

1.1. Credit Overview 4

1.1.1. Credit concept 4

1.1.2. The nature of credit 4

1.1.3. Functions of credit 4

1.1.3.1. Resource redistribution function 4

1.1.3.2. Function of promoting the circulation of goods and developing production 4

1.1.4. The role of credit 5

1.1.5. Credit classification 5

1.1.5.1. Classification by credit term 5

1.1.5.2. Classification by lending object 5

1.1.5.3. Classification by purpose of capital use 6

1.1.5.4. Classification by collateral 6

1.1.6. Principles, conditions and interest rates for loans 6

1.1.6.1. Lending principles 6

1.1.6.2. Loan conditions 7

1.1.6.3. Loan interest rate 7

1.2. Overview of credit risk 7

1.2.1. Concept of risk 7

1.2.2. Concept of credit risk 8

1.2.3. Classification of debt, bad debt, overdue debt 8

1.2.3.1. Debt classification 8

1.2.3.2. Bad debt 9

1.2.3.3. Overdue debt 9

1.2.4. Credit risk measurement indicators 9

1.2.5. Damages caused by credit risks 10

1.2.5.1. Damage to Bank 10

1.2.5.2. Damage to the economy 10

1.2.5.3. Damage to international relations 10

1.2.6. Causes of credit risk 11

1.2.6.1. Objective causes 11

1.2.6.2. Subjective causes 11

CHAPTER 12 SUMMARY

CHAPTER 2 CURRENT STATUS OF CREDIT RISK AT SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK, LAM DONG BRANCH, PHASE 2 - 2013

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2.1. General introduction of Saigon Thuong Tin Commercial Joint Stock Bank Lam Dong Branch 13

2.1.1. Formation and development process 13

2.1.2. Functions and areas of operation 15

2.1.2.1. Operational functions 15

2.1.2.2. Field of operation 16

2.1.3. Organizational structure 17

2.1.3.1. Management structure of Sacombank Lam Dong Branch 17

2.1.3.2. Duties of departments 18

2.2. Current status of credit risk at Saigon Thuong Tin Commercial Joint Stock Bank, Lam Dong Branch in the period 2011 - 2013 20

2.2.1. Credit process at Saigon Thuong Tin Commercial Joint Stock Bank, Lam Dong Branch 20

2.2.2. Business performance of Saigon Thuong Tin Commercial Joint Stock Bank in the period of 2011 - 2013 23