MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF ECONOMICS
TRINH THI MY AN
FACTORS AFFECTING THE ABILITY TO PAY DEBT OF CORPORATE CUSTOMERS AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM - LONG AN BRANCH
Major: Finance - Banking Code: 8340201
MASTER'S THESIS IN ECONOMICS
SCIENTIFIC INSTRUCTOR: DR. PHAM THI ANH THU
Ho Chi Minh City - 2019
COMMITMENT
I hereby declare that: The topic “ Factors affecting the debt repayment ability of corporate customers at Vietnam Joint Stock Commercial Bank for Investment and Development - Long An Branch ” is my own research work. The data in this topic is collected and used honestly. The research results presented in this thesis are not copied from any other thesis and have not been presented or published in any other previous research work.
Ho Chi Minh City, October 9, 2019
Author
Trinh Thi My An
INDEX
COVER PAGE STATEMENT OF GUARANTEE TABLE OF CONTENTS
LIST OF ABBREVIATIONS LIST OF TABLES LIST OF FIGURES, DIAGRAMS SUMMARY OF THEME
ABSTRACT
CHAPTER 1. TOPIC INTRODUCTION 1
1.1. The necessity of the research topic 1
1.2. Research objective 2
1.3. Research question 2
1.4. Research object and scope 3
1.5. Research method 3
1.6. Structure of the thesis 3
1.7. Scientific and practical significance of topic 4
Chapter 1 4 Summary
CHAPTER 2. THEORETICAL OVERVIEW AND RESEARCH HYPOTHESES 5
2.1. Overview of credit and credit risk in lending to corporate customers 5
2.1.1 Credit Overview 5
2.1.2 Concept of credit risk in credit granting activities for corporate customers 7
2.2. Debt repayment capacity of corporate customers 8
2.2.1. Characteristics of loans for corporate customers 8
2.2.2. Compare the differences between lending to corporate customers and individual customers 10
2.2.3. Concept of debt repayment capacity of corporate customers 10
2.2.4. The relationship between loan repayment capacity and credit risk in lending activities to corporate customers 13
2.2.5. The meaning and role of evaluating and analyzing factors affecting the debt repayment ability of corporate customers 14
2.3. Factors affecting the debt repayment ability of corporate customers 14
2.3.1. Factors related to corporate customers 14
2.3.2. Loan factors 16
2.3.3. Factors related to the bank 18
2.3.4. Factors related to the economy 18
Chapter 2 Summary 19
CHAPTER 3. CURRENT STATUS OF DEBT PAYMENT ABILITY OF CORPORATE CUSTOMERS AT BIDV LONG AN 20
3.1. Introduction to Vietnam Joint Stock Commercial Bank for Investment and Development, Long An Branch 20
3.1.1. Overview of Vietnam Joint Stock Commercial Bank for Investment and Development, Long An Branch 20
3.1.2. Business performance results 22
3.2. Current status of credit activities of corporate customers at Vietnam Joint Stock Commercial Bank for Investment and Development, Long An branch 23
3.3. Current status of debt repayment ability of corporate customers at BIDV Long An 29
3.4. Reasons for failure to repay debts of corporate customers at BIDV Long An 31
3.4.1 Customer factors 31
3.4.2 Factors from the bank 32
3.5. Method of assessing the debt repayment capacity of corporate customers at BIDV Long An 34
3.5.1. Assessment based on internal credit rating 34
3.5.2. Evaluation based on customer appraisal results (Before, during and after lending) 38
3.6. Comments on the method of assessing the debt repayment capacity of corporate customers at BIDV Long An 41
3.6.1. Achievements in the method of assessing the debt repayment capacity of corporate customers at BIDV Long An 41
3.6.2. Limitations on the method of assessing the debt repayment capacity of corporate customers at BIDV Long An 42
3.6.3. Causes of limitations in the method of assessing the debt repayment capacity of corporate customers at BIDV Long An 42
Chapter 3 Summary 43
CHAPTER 4. MODEL AND RESEARCH RESULTS 44
4.1 Research model 44
4.2 Research data 47
4.3 Research results 49
Chapter 4 Summary 54
CHAPTER 5: CONCLUSION AND SOLUTIONS TO IMPROVE THE ABILITY TO REPAY DEBT OF CORPORATE CUSTOMERS AT THE JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM, LONG AN BRANCH 55
5.1. Summary of research results 55
5.2. BIDV's credit development orientation in the coming years 55
5.3. Solutions to improve the ability to repay corporate customers at Vietnam Joint Stock Commercial Bank for Investment and Development - Long An Branch 57
5.4. Limitations of the thesis 61
5.5. Conclusion 62
Chapter 5 Summary 63
REFERENCES APPENDIX
AEG
Advising Expert Group Meeting (United Nations AEG) | |
BIDV Long An | Joint Stock Commercial Bank for Investment and Development of Vietnam South - Long An Branch |
BIDV | Joint Stock Commercial Bank for Investment and Development of Vietnam Male |
CBTD | Credit Officer |
CIC | Credit Information Center (credit information center of State Bank) |
DN | Business |
KNTN | Ability to pay debt |
KHDN | Corporate Clients |
NH | Bank |
Commercial Bank | Commercial Bank |
NQH | Overdue debt |
TMCP | Joint stock trading |
XHTDNB | Internal credit rating |
TCKT | Economic organization |
State Bank of Vietnam | State Bank |
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STT
TABLE NAME | PAGE | |
1 | Table 2.1. Comparison of differences between corporate customer loans business and individual customers | 10 |
2 | Table 2.2. Relationship between KNTN and debt classification results of client | 12 |
3 | Table 3.1 Business performance results of BIDV Long An from 2016-2018 | 22 |
4 | Table 3.2. Outstanding loans of corporate customers in 2016-2018 | 23 |
5 | Table 3.3. Profitability of corporate customers at BIDV Long An from 2016 -2018 | 24 |
6 | Table 3.4. Outstanding corporate customer loans by segment customers 2016 – 2018 | 24 |
7 | Table 3.5. Outstanding corporate customer debt by loan term capital | 25 |
8 | Table 3.6. Debt classification of BIDV Long An from 2016 - 2018 | 26 |
9 | Table 3.7. Outstanding debt of BIDV Long An's corporate customers by number of days overdue limit | 30 |
10 | Table 3.8. Credit rating classification | 37 |
11 | Table 3.9. Ranking results and debt groups of corporate customers career | 38 |
12 | Table 4.1. Comparison of binary logistic regression model and regression linear | 45 |
13 | Table 4.2. Descriptive data statistics of variables | 49 |
14 | Table 4.3. Results of testing the predictive level of the model | 50 |