Improving Financial Capacity and Credit Operation Efficiency of Commercial Banks in the Southeast Region

This debt is to increase medium and long-term capital mobilization. However, in order for the debt instruments of commercial banks in the area to be truly attractive and appealing to the public, especially in mobilizing medium and long-term capital, one of the decisive issues is to create debt instruments that are transferable and that the holder can easily transfer, because the majority of people are not familiar with long-term financial investment activities and do not really trust in the stability of the VND value.

Sixth, create reasonable interest rates, suitable for the nature of each type of mobilization. Currently, credit interest rates have been liberalized without being controlled by interest rate ceilings as before, which is a favorable condition for commercial banks to effectively handle the issue of mobilization interest rates based on the supply and demand of capital in the market, but the important thing is to choose the method of determining mobilization interest rates to attract the desired capital source and ensure the interests of capital holders and banks. Therefore, it is required that commercial banks in the area develop a truly systematic and scientific credit interest rate policy suitable for local reality, where the interest rates of each form of mobilization must be determined with specific bases and calculations. It is necessary to implement the floating interest rate method in capital mobilization, first of all for medium and long-term capital mobilization.

Seventh, expand the capital mobilization network. Commercial banks should expand capital mobilization points such as transaction offices, transaction points, savings desks, and inter-commune banks in densely populated areas, concentrated industrial parks, and high-income residential areas to create favorable conditions for depositors. At the same time, reduce the capital mobilization points of commercial banks that are too close together, avoid spreading out to improve the efficiency of capital mobilization, and implement capital mobilization agents at offices and agencies to create favorable conditions for depositors and reduce costs for commercial banks, thereby increasing the source of mobilized capital.

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Eighth, innovate transaction style and improve service quality in capital mobilization. Transaction style must be considered a special type of business: Civility and politeness will attract depositors, especially in the context of integration, the more fierce the competition, the more flexible, enthusiastic, polite, thoughtful the service attitude must be, making a good impression on customers to attract more depositors. For a truly civilized and polite transaction style, commercial banks need to build a civilized and polite transaction regulation, a model workplace, use it as a model for implementation and regularly check the implementation, promptly correct any deviations.

The goal of expanding capital mobilization is to maximize the temporarily idle monetary capital in the economy. On the one hand, to increase the source of profitable investment credit capital, directly serving the process of economic restructuring in the Southeast region towards industrialization and modernization, on the other hand, to create conditions for expanding non-cash payments in the economy. These two aspects have the effect of promoting each other and increasing the efficiency of monetary capital mobilization in the area.

Ninth, expanding and diversifying forms of capital mobilization in foreign currency. In recent times, the network of remittance services, foreign currency exchange, non-trade payments and other forms of mobilization have been gradually deployed and applied. However, in the context of international economic integration and being a member of the WTO, commercial banks in the Southeast region can take advantage of opportunities and attract international capital flows through expanding credit relations with international and regional financial institutions and banks in the forms of receiving entrusted capital, funding or issuing bonds on the international market.

3.2.1.2. Improve financial capacity and credit performance of commercial banks in the Southeast region

Financial capacity and credit performance in banking operations are essential to ensure successful implementation of capital mobilization strategies.

capital and credit capital to promote economic restructuring in the Southeast region towards industrialization and modernization.

Accordingly, local commercial banks, based on the orientation of economic restructuring of the Southeast region as well as of the provinces in the region, and at the same time based on the development orientation of each industry and each field, each commercial bank needs to clearly identify key fields, projects, and product types for investment. It is necessary to conduct research to determine the credit limit for each industry and each field for investment, in accordance with the specific conditions of the Southeast region, on the other hand, ensuring safety and dispersion of credit risks.

3.2.1.3. Strengthening propaganda associated with building customer strategies, focusing on the goal of economic restructuring in the Southeast region as well as localities in the region.

The system of commercial banks in the Southeast region needs to build a customer strategy to promote and propagate the image of commercial banks to customers. Through the customer strategy, each commercial bank maintains and strengthens potential customers and seeks new customers based on the classification according to the level of trust to have certain preferential policies to retain customers. To build the image of commercial banks in customers, it is not only necessary to advertise on mass media but also through specific activities through the introduction and implementation of quality products and services of commercial banks. This solution is very important in attracting and retaining customers to gradually create a close relationship between banks and customers, thereby identifying traditional and potential customers of commercial banks, at the same time creating added value and economic benefits for commercial banks, customers and affecting the entire national economy. Specific measures are:

- Strengthen the implementation of banking services such as: Non-cash payment services, collection and payment services, automatic withdrawal systems, credit services, internet banking services, home banking, etc. so that customers, especially customers in the private sector, understand and perceive the meaning and benefits of banking services, and on that basis develop specific customer strategies.

- It is necessary to focus on attracting all economic sectors and industries, thereby evaluating and classifying customers according to their creditworthiness, forming a list of traditional and potential customers to have specific incentive policies to attract and retain the bank's strategic customers, making customers stick with the bank based on a solid foundation of economic benefits.

- Periodically hold conferences with customers, including enterprises, production and business establishments, farm owners, etc., of all economic sectors to listen to, collect, and record their information, assessments, and wishes. Only then can commercial banks grasp the real needs of customers and take measures to meet those needs promptly, which also means creating a strong, close relationship between commercial banks and customers.

3.2.1.4. Continue to develop, improve the quality of management and use staff reasonably and effectively, modernize banking technology in the Southeast region.

In order to mobilize capital and continuously expand credit, in addition to measures on network expansion, using interest rate tools, propaganda and building customer strategies, commercial banks need to develop human resources and modernize banking technology, especially in the current conditions of integration and information explosion, requiring the capacity and quality of human resources.

Banking technology and systems must be compatible with the demands of society and internationalization.

People are the decisive factor of all success. The quality of the credit staff is one of the decisive factors for the quality and efficiency of credit. Reality has shown that in credit activities, if a bank has a dynamic credit staff with qualifications, experience, courage and good ethics, that bank will have many advantages and opportunities to win in competition. Lessons learned about the successes and failures in credit activities of commercial banks in the recent past have all found the cause to be on the side of bank staff, directly including credit staff.

In practice, the educational level of staff and the technological level at commercial banks in the Southeast region are relatively high, with important positions in commercial banks having university or higher degrees, and the facilities and techniques serving banking activities at a high level. However, commercial banks have not fully exploited the potential of this resource, causing banking activities to not achieve the desired efficiency, due to the inadequacy in improving the qualifications, arranging and assigning tasks of the staff and the lack of uniformity in the technology system at commercial banks. Therefore, continuing to develop and improve the quality of staff, especially management staff and credit officers, is an urgent requirement. If there is a team of staff strong enough in terms of expertise, love for the job, understanding of legal knowledge and knowledge of market economy, knowledge and requirements of the cause of industrialization and modernization of the country in general, for the Southeast region in particular, at the same time having pure and healthy moral qualities, not embezzling or taking advantage, then surely the credit activities of commercial banks will achieve high results, effectively serving the development goals.

socio-economic development in general and the Southeast region in particular. To achieve the above objectives, it is necessary to arrange, train and use management staff and credit workers in a reasonable and effective manner.

First of all, conduct screening, supplementing, and strengthening credit officers, including executive officers and direct operational officers. Research and issue specific regulations on standards for officers in general, and credit officers in particular, ensuring: professional ethics, proficiency in professional skills, knowledge of law and market economy, good transaction style, etc. On that basis, select the existing staff, and transfer to other departments those credit officers who do not meet the set standards. At the same time, select and supplement young officers who meet the set standards.

Second, strengthen training and retraining of credit officers in a comprehensive, continuous and systematic manner. Credit officers must be regularly trained and updated in professional and technical knowledge; must promptly grasp the State's policies and guidelines, and the bank's credit mechanism. In addition, it is necessary to regularly supplement knowledge about law, market, foreign languages, information technology, industry economics, etc. for credit officers; have a plan to regularly train credit officers, increase exchange and learning of experiences between banks and between other localities. Forms of staff training need to be researched and applied appropriately to actual conditions and ensure effectiveness; on-site training, concentrated training, short-term training, and training at specialized schools.

It is necessary to organize training for credit officers on knowledge and content directly related to the economic restructuring towards industrialization and modernization in general, especially for the Southeast region in particular.

Third, arrange and use the credit staff appropriately, with the right people and the right jobs to ensure effective use of human resources, while strengthening management, inspection and supervision to promote the autonomy and flexibility of each staff member. Issue a system of assigning work and credit targets associated with material benefits. Assignment must be associated with inspection and control work, avoiding assigning credit staff completely, limiting the pursuit of targets and lending of poor quality. Attached to assignment must be a system of accurately evaluating staff, thereby having a satisfactory treatment regime. For the current credit staff, in addition to a reasonable material treatment regime, there must be a strict reward and punishment regime, providing means and working conditions, and close guidance and support throughout the business operation process.

Fourth, there must be a reasonable salary, reward and treatment regime for credit officers. In management, this must be considered a motivational mechanism to encourage and motivate credit officers to improve the quality and efficiency of their work. This mechanism must be built on the principle of linking economic incentives with credit expansion, ensuring safety and efficiency. In addition, commercial banks must also take measures to strictly handle officers who violate credit mechanisms, causing credit risks and reducing the business efficiency of the bank.

3.2.1.5. Creating links between commercial banks in the Southeast region in business activities

Along with the integration trend, in the Southeast region, Ho Chi Minh City is not only the financial center of the country but also needs to rise to the regional level, this is an inevitable objective requirement of the development trend. In that condition and circumstance, commercial banks in the Southeast

The South needs to improve its operational capacity to be on par with commercial banks in the region and the world. Therefore, there must be a connection between Vietnamese commercial banks to support each other to coexist in a competitive environment, gradually developing multi-functional activities. In the long term, the connection between commercial banks and other intermediary financial institutions will create transnational banks with scale and scope expanding not only domestically but also globally.

Furthermore, the characteristic of commercial banks is that they are vertical systems, with vertical linkages between branches of commercial banks. Therefore, commercial banks must maximize the support linkages between branches and headquarters in credit activities, ensuring the transfer of capital from surplus to shortage areas to promptly meet capital needs for the process of economic restructuring.

3.2.2. Specific solution groups

3.2.2.1. Building a credit structure associated with the economic structure of the Southeast region in accordance with the characteristics of each province in the region, expanding and increasing investment in the non-state economic sector.

Credit structure has a great and direct impact on the process of economic restructuring towards industrialization and modernization. Therefore, in the management and operation of credit activities of commercial banks in the Southeast region, the requirement is not only to increase the scale of credit balance to meet the capital demand for economic restructuring in general, but more importantly, to build and shift the credit structure in accordance with the economic restructuring process of the region and of each locality in the region. From the perspective of capital investment for the economy, in the credit structure policy of commercial banks in the Southeast region, it is necessary to pay attention to the following major orientation solutions:

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