- Regularly assess and control risks in the lending process for individual customers. Credit contracts must be complete, clear, and comply with current regulations on lending processes; attention must be paid to risk warning signs in the control process of lending activities. The Board of Directors and the Board of Management must have written instructions to adjust and supplement, and at the same time handle cases of non-compliance and repeated errors.
- Exploit, build and develop information technology and communication systems. Invest in software, programs and applications. Report to support the inspection and supervision of internal control systems. Strengthen remote monitoring. Build external communication channels to meet requirements, answer questions, wishes and listen to customer feedback, thereby reviewing, changing and perfecting operations and processes to satisfy customers.
1.3.2 Lessons on improving the quality of personal customer loans for VCB - Thanh Xuan Branch.
To improve the quality of personal loans, VCB - Thanh Xuan Branch needs to define a specific strategy and roadmap for its bank. Strengthen brand promotion, enhance marketing activities, customer care and after-sales service to enhance information transmission to help personal customers have updated information about the bank's capacity and reputation, basic understanding of loan products, creating a multi-dimensional connection between the bank and customers. Implement specialization and improve the quality of the team in the field of personal loans, both in terms of professional qualifications and transactional work and awareness of the importance of improving the quality of personal loans. Rearrange the organizational model to suit the personal loan model. Maybe you are interested!
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Lessons on risk mitigation in lending to individual customers: lending to individual customers in large quantities, VCB - Thanh Xuan Branch must always comply with strict operating regulations and capital safety ratios of the State Bank and VCB. Resources are not large, so VCB - Thanh Xuan Branch must have a clear orientation on lending to individual customers. Thereby, VCB - Thanh Xuan Branch: does not lower lending conditions for individual customers, when lending, it is necessary to evaluate customers comprehensively, not only considering the current ability to repay but also the ability to repay in the future when there are fluctuations in interest rates, asset prices, sources of income, and at the same time paying attention to the credit history of individual customers, debt-to-income ratio, customer credit rating, etc. It is necessary to have a monitoring mechanism and information system to control an individual customer borrowing capital. Improve the quality of lending to individual customers in a safe, effective, and sustainable manner, minimizing risks.
CONCLUSION OF CHAPTER 1
In chapter 1, the thesis presents basic theories on the quality of personal loans including: (1) Overview of personal loans of commercial banks; (2) Quality of personal loans of commercial banks;
(3) Factors affecting the lending quality of commercial banks; (4) Experience in improving the quality of lending to individual customers at some banks and lessons learned for VCB - Thanh Xuan Branch.
Through studying theoretical issues on the quality of personal loans, we can see that improving the quality of personal loans plays an important role in the existence and development of commercial banks. Therefore, finding measures to improve the quality of personal loans is very necessary, and commercial banks need to pay due attention.
The theoretical research contents in chapter 1 will be the basis for analyzing, researching and evaluating the current situation and proposing solutions to improve the quality of personal customer loans at VCB - Thanh Xuan Branch in chapters 2 and 3.
CHAPTER 2
CURRENT STATUS OF PERSONAL LOAN QUALITY AT JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM - THANH XUAN BRANCH
2.1 Overview of Joint Stock Commercial Bank for Foreign Trade of Vietnam - Thanh Xuan Branch
2.1.1 History of formation and development of Joint Stock Commercial Bank for Foreign Trade of Vietnam - Thanh Xuan Branch
The Bank for Foreign Trade of Vietnam, formerly known as the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), was established and officially put into operation on April 1, 1963 with its predecessor being the Foreign Exchange Department (under the State Bank of Vietnam).
Address: No. 448 - 450 Nguyen Trai, Thanh Xuan Trung ward, Thanh Xuan district, Hanoi city
Phone number: 02435578589
Fax number: 02435579138
Upgraded from a Transaction Office, Vietcombank Thanh Xuan Branch was established in 2009, in the context of the financial and monetary market entering the most difficult period, the "market share cake" was almost divided. However, with the spirit of solidarity and efforts to overcome difficulties, Vietcombank Thanh Xuan quickly affirmed its endogenous strength and youthfulness through strong growth results each year on the "fronts".
When it was first established, the Branch consisted of only 3 departments and 1 team, with a total of 36 staff members. Up to now, the organizational system has been basically completed with a total of 78 staff members; including 09 departments and 1 team, including 2 transaction offices.
As a newly established branch, Vietcombank Thanh Xuan has also paid much attention to social and charitable activities. Since 2009, Vietcombank Thanh Xuan has had many social security activities such as visiting and giving gifts to children with serious illnesses at the National Institute of Hematology and Blood Transfusion, E Hospital, supporting flood victims... with a total amount of up to hundreds of millions of VND.
To move forward steadily in the future, Vietcombank Thanh Xuan has determined that competition in the banking sector today is mainly based on two aspects: interest rates and service quality. If we only know how to lower interest rates to compete for customers, it will not be sustainable. Vietcombank Thanh Xuan chooses its own way of improving service quality, promoting the internal strength of its staff, being proactive, dynamic, positive, and sensitive to find large, potential customers. At the same time, it adheres to the credit growth criteria based on credit quality control to achieve two goals: safety and efficiency.
Vietcombank is in the process of continuous development and innovation towards the goal of becoming the number 1 bank in Vietnam and having a significant position in the region. To achieve that goal, the role and contribution of all branches, including Vietcombank Thanh Xuan, are extremely important. On the upcoming journey, Vietcombank Thanh Xuan will continue to promote the achieved results, overcome all difficulties, continue to consolidate its reputation, affirm its position and maintain the trust of customers and partners in the area.
2.1.2 Organizational structure of Joint Stock Commercial Bank for Foreign Trade of Vietnam - Thanh Xuan Branch
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Diagram 2.1: Organizational structure of VCB – Thanh Xuan Branch
Manager
Deputy Director Deputy Director
Block
QHKH
QL Block
risk
Block of work
Finance and Accounting Department
maths
Currency and Service Group
treasury
Transaction office
career
QL Block
internal
Subordinate block
Customer Service Department
individual
Customer Service Department
DN
Risk Management Department
Credit Management Department
Customer Service Department
Currency and treasury services group
Tasks of each department
- Manager :
Branch Director performs the following functions and tasks:
+ Organize, manage and operate general activities in the branch, decide on strategic issues and business development plans of the branch.
+ Ensure completion of branch business targets and plans
Coordinate with departments and functional units to develop the branch network.
- Deputy Director :
+ Assist the director, be authorized by the branch director to direct and manage some aspects of work, sign on behalf of the director and be responsible to the director for assigned tasks.
+ Direct the branch's operational activities, directly in charge of the Accounting and Payment Department, Banking Services, Transaction Office, Trade Union work, Women's Union work, and Youth Union work.
- Transaction Office No. 1 : The transaction office is a miniature model of the Branch, performing the main operations of capital mobilization, lending to individual customers, performing payment services for current services in the area and operations related to deposit account activities of legal entities. Receiving deposits in VND and foreign currencies for economic sectors, organizations and individuals.
- Customer Department : Is the focal point for maintaining and developing customer relationships in all aspects of operations, while analyzing risks in providing credit products, project investment products and banking services according to the orientation of Vietnam Joint Stock Commercial Bank for Foreign Trade in each period.
Therefore, the customer service department has the following main tasks:
+ Build a business plan
+ Build and implement customer policies - Coordinate the design of products suitable for customers and implement marketing measures to customers
+ Receive customer needs, assess credit, implement and manage credit according to current procedures and regulations
+ Implement credit risk management policy and customer portfolio management
+ Provide customer information to the Debt Management department to make reports and presentations on debt classification, provisioning and using reserves to handle credit risks.
- Accounting and payment department - banking services
Advise and assist the board of directors in a number of professional areas:
+ Financial accounting: the financial accounting department is responsible for performing accounting tasks, preparing periodic financial reports (monthly, quarterly, annually) of the branch; monitoring and managing the branch's revenue and expenditure situation.
+ Transaction accounting: the transaction accounting department is responsible for opening accounts, managing deposit and loan accounts of customers according to the regulations of the Vietnam Joint Stock Commercial Bank for Industry and Trade, managing important seals, valuable documents, blank bills of exchange, and checks for collection of customers.
+ Card department: the card department is responsible for conducting market research and managing assigned ATMs.
+ Debt management department: The debt management department receives mortgage and pledge files (if any) from the Customer Department to carry out storage procedures. Periodically review and manage risks to the lowest acceptable level; analyze the causes of risks and then propose appropriate solutions.
+ International payment department: Make international payments for imported commercial goods and services related to imported goods according to regulations.