debt repayment judgment for SCB Da Nang. SCB Da Nang has sent a complaint and provided related information of Mr. Cuong to the police agency requesting criminal prosecution. Hai Chau District Police, Da Nang City has issued an official dispatch refusing to accept the case and requesting SCB Da Nang to transfer the case to the People's Court of Da Nang City for handling and settlement.
VNECO7 Power Construction Joint Stock Company: The Company's income is unstable and due to the Company's construction, debts are often not collected on schedule. The Company committed to pay 5.5 billion VND but only paid 300 million VND. SCB Da Nang coordinated with the Debt Collection Department to work with the Lien Chieu District Enforcement Agency, Da Nang City to request the auction of assets, but the Lien Chieu District Enforcement Agency, Da Nang City has not yet issued a decision to enforce the seizure.
Customer Nguyen Van Sy: The customer suffered losses in business, leading to an uncertain source of debt repayment. The customer repeatedly committed to repaying the debt but did not do so. SCB Da Nang has worked with the customer's family many times. The family representative committed to completely paying off the overdue debt to SCB Da Nang in the near future...
With the motto of always accompanying customers, SCB Da Nang has gradually resolved difficulties with customers, investigated the causes of overdue debt, proposed appropriate solutions such as adjusting the debt term to suit the production and business situation of customers; contributed to bringing overdue debt back to group 1 debt with a total outstanding debt of nearly 21 billion VND. This has created favorable conditions for customers to continue production and business, on the other hand, helped SCB Da Nang stabilize outstanding debt, reduce overdue debt and retain customers. SCB Da Nang is increasingly improving risk management in lending to ensure credit growth goes hand in hand with credit quality.
2.2 Current status of risk management in credit activities at Saigon Commercial Joint Stock Bank, Da Nang Branch in recent times
In the past, SCB in general and SCB Da Nang in particular have not had a credit risk management model that has been thoroughly and specifically researched. Risk management is mainly based on experience in the lending process and provides handling methods based on management experience... Specifically as follows:
2.2.1 Loan process
At SCB Da Nang, each loan application must comply with the correct procedures to control the loan amount before , during and after the loan, which is also a way to minimize risks in lending at SCB in general as well as
SCB Da Nang.
follow the procedure
food
porch
follow these steps :
Step 1: Receive, guide and check loan documents. Credit officers are the focal point for receiving, guiding and checking the completeness, legality and validity of loan documents including loan customer documents; loan project documents; loan guarantee documents (after that, these documents are transferred to the Central region valuation department of SCB to value the assets).
Step 2: Appraisal of credit conditions. Credit officers appraise the customer's loan application based on the following contents: appraisal and assessment of the borrower; the customer's production, business and financial situation; appraisal of the investment project; risk analysis, measures to prevent and minimize risks.
Step 3: Loan approval, credit contract signing. Credit officers prepare a credit appraisal report and submit it to the Credit Business Department leader with the customer's loan application. The Credit Business Department leader comments on the report and submits it to the SCB Da Nang leader for approval. The SCB Da Nang leader reviews the application and makes a final decision or submits it to the Head Office in case the loan exceeds the Branch's decision-making authority. After
SCB agrees to lend and will proceed to draft and sign the credit contract and loan guarantee contract.
Step 4: Disbursement, monitoring and supervision of loan use. After signing the credit contract and loan guarantee contract as prescribed, the Credit Officer will prepare a disbursement report according to the project progress and submit it to the leaders for approval and then proceed with disbursement in accordance with SCB's approval and regulations. In addition, the Credit Officer will monitor and inspect the customer's use of the loan according to the intended use of the loan.
Step 5: Debt collection and handling. Credit officers must regularly monitor customers' compliance with credit contracts; monitor business activities, revenue sources and customers' ability to repay debts to take timely measures when customers show signs of not being able to repay debts; monitor the completion of legal documents of the project to take timely measures when risks occur...
2.2.2 Human
people
risk
Currently, SCB Da Nang identifies financial risks .
g in smart lending
through activities
g such as customer contact; analysis of loan application documents;
directly to the business premises
download and location
Customer points to check
check; burn test
export or
Sign the completed file
disbursement ...
Through activities
g as stated above then the activity
g profile analysis
Loan proposal is an effective method to identify risks through analyzing the legal documents of the project , loan plan , financial plan of the enterprise ... helping credit officers evaluate the legal status and verify the purpose .
loan purpose , avoid the risk of having to complete legal documents .
Then, periodically every 3 or 6 months, the Internal Control Department
The Head Office will inspect the credit activities at SCB Da Nang. Specifically, such as checking legal documents , loan documents , and disbursement documents of customers .
Evaluate compliance with procedures as well as credit council approvals and the reasonableness, completeness and authenticity of documents to detect errors in the document processing process, avoiding risks of causing losses to SCB Da Nang. After having results
The results of the Internal Control Department of the Head Office and the Board of Directors have
The Board of Control can request the Board of Supervisors to inspect credit activities at any unit if it feels uncertain about the safety level of credit activities.
2.2.3 Risk measurement
Rating
money
crib
The customer service department reviews the documents and
monthly period for classification
customer. melon
on the results of the classification report
customers, SCB Da Nang can measure the corresponding risk level for each customer in the lending process. Which risks need attention, impact
focus on customer segmentation , thereby providing solutions
reasonable and effective prevention
The current internal credit rating system [13] of SCB Da Nang divides customers based on financial and non-financial criteria to evaluate
ranking point
money
crib
customer base with some main features as follows:
Table 2.5. Financial and non-financial criteria for internal customer credit rating of SCB Da Nang
money
Type
Characteristic | Risk level | |
AA: Especially good. | - Strong financial situation. - Highly effective business. - High management capacity, professional. - Long-term, sustainable development prospects. - Resilient to the impacts of the business environment. - Good short-term, medium-long-term debt repayment ability. - Have reputation in banking relationship. | Risk at the lowest level. |
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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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div.maincontent .s40 { color: black; font-family:Times New Roman, serif; font-style: normal; fo](https://tailieuthamkhao.com/uploads/2022/06/06/dich-vu-phi-tin-dung-tai-ngan-hang-thuong-mai-co-phan-dau-tu-va-phat-8-1-120x90.png)
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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AA:
Very good.
- Healthy financial situation. - Effective and stable business. - Good management capacity. - Long-term development prospects. - Less affected by changes in the business environment. - Good short-term, medium-long-term debt repayment ability. - Have reputation in banking relationship. | The risk is very low. | |
A: Good. | - Financial situation is stable but has some limitations. - Effective business. - Relatively good management capacity. - Long-term growth prospects are good but may be affected by changes in the business environment. - Good short-term debt repayment ability, relatively good medium and long-term debt repayment ability. - Have reputation in banking relationship. | The risk is low. |
BBB: Rather. | - Financial situation is stable in the short term but has some limitations, which may deteriorate if the business environment turns unfavorable. - Business performance is average. - Management capacity has some limitations. - Good short-term debt repayment ability. | The risk is medium . |
BB: Average. | - Average financial situation, there is a potential risk. - Relatively low business efficiency is easily affected by the business environment. - Ability to repay debt in the short term. | Risk is at medium level . Attention should be paid to control . |
B:
Medium.
- Average financial situation is weak, with many potential risks, and cash flow is volatile. - Low business efficiency is easily affected by the business environment. - The ability to repay debt is less guaranteed, there may be additional term, debt term adjustment. | Medium risk . Long term there is a risk of loss of capital. | |
CCC: Below average . | - Financial situation is weak, struggling to maintain operations. - Low business efficiency, many fluctuations, there may be years of loss. - Poor management capacity. - The ability to repay debt is not guaranteed, there is a possibility of losing part of the capital. | Below average risk . There is a risk of loss. capital if not remedied promptly . |
CC: Substandard . | - Poor financial situation, overdue debt. - Low business efficiency, loss. - Poor management capacity. - Unsecured debt repayment ability, possible loss of capital. | High risk. |
C: Weak. | - Financial situation is very weak, has overdue debt. - Business loss. - Very poor management capacity. - Unable to pay debts in full. | The risk is very high. |
D: Weak | - Prolonged losses, extremely poor financial situation. - Currently unable to pay debts in full. | Especially risky. |
Sensitivity analysis
of the profile : Through the
dynamic analysis
lake
At the beginning, the credit officer will know the factors that affect the effectiveness of the application.
Situation analysis . Besides the work
dynamic analysis
profile , SCB
Danang has food
porch
situational analysis of the case .
analysis
situation will help to overcome
weak
aim point
better control of possible risks
occurs through measuring which factors materially affect the record.
2.2.4 Risk control and financing
Melon
on the results of the pre - qualification
crib
for businesses
Loan, SCB Da Nang has specific policies applied to each customer group to control and mitigate current risks as follows :
Table 2.6 Current policies in place to control and finance risk
of SCB Da Nang with each customer group.
Type
Applicable policy | |
AAA | - Maximum satisfaction of customer needs. - Collateral: All credit security measures are applied according to SCB's regulations. The ratio of outstanding credit to collateral value is considered and approved at the maximum level. - Interest rate, fee: Most preferential. |
AA | - Maximum satisfaction of customer needs. - Collateral: Real estate or other high-priority collateral is required. In addition, customers are considered for applying collateral measures such as inventory, receivables, and unsecured loans up to 50% of the total outstanding credit balance. The ratio of outstanding credit balance to the value of collateral in the form of real estate is considered acceptable at the maximum level. - Interest rate, fee: Preferential. |
A | - Be cautious in long- term lending . - Collateral: Real estate or other types of collateral with higher priority are required. In addition, customers are considered for applying security measures with inventory, receivables, and unsecured loans up to 30% of total outstanding debt. credit granting. The ratio of credit granting to the value of collateral at the level |
Normally according to SCB regulations. - Interest rate, fee: Preferential. | |
BBB | - Restrict long-term lending. - Collateral: Only real estate or other collateral with higher priority is accepted. The credit ratio on collateral value is at the normal level according to SCB's regulations. - Interest rate, fee: No preferential treatment. |
BB | - Carefully evaluate the business cycle and cash flow. - Collateral: Only real estate or other collateral with higher priority is accepted. The credit ratio on collateral value is at the normal level according to SCB's regulations. - Interest rate, fee: No preferential treatment. - Regularly and closely monitor the purpose of capital use and cash flow to collect debt promptly. |
B | - Limit lending, gradually reduce outstanding debt. - Collateral: Only accept real estate or other types of collateral with higher priority. Credit ratio on collateral value is at normal level according to SCB's regulations. Find ways to add collateral. - Interest rate, fee: No preferential treatment. - Check and monitor cash flow regularly to collect debt. |
CCC | - No loans (except for mortgage loans on savings books and deposit balances) . - Find ways to add collateral. - Can file a lawsuit to recover debt if the customer is not willing to pay the debt. |
CC | - No new credit granted. - File a lawsuit and collect debt according to regulations. |
C | - No new credit granted. - File a lawsuit and collect debt according to regulations. |
D | - No new credit granted. - File a lawsuit and collect debt according to regulations. |