Formatted: Bullets and Numbering
Analysis of short - term creditactivities at Song Phu Rural Development Bank
(Source: Credit Department of Song Phu Agricultural and Rural Development Bank)
a. Loans to individuals and production households:
Bank loans for agricultural and handicraft productionBusiness, trade-service and other loans for individuals and production households.The main lending component is farmers, because according to the bank, farmers are the customers.have a direct impact on the development and reputation of the bank. As perStatement of the Director of the Vietnam Bank for Agriculture and Rural Development: "The reality of credit activitiesThe experience in the market over the past 10 years allows us to affirm: farmers areCustomers must repay their loans fairly; people are not only customers but alsoprestigious companion of Vietnam Bank for Agriculture and Rural Development". Therefore, in the processIn its operations, the bank always focuses on lending to economic sectors.This.
In recent years, bank lending to individuals and households has increased.Export always accounts for a very high proportion in the economic structure.
In 2006, loan turnover for production households and individualsto 63,263 millionVND, increased by VND 5,787 million, with a growth rate of 10.07% compared to 2005.Use all available potential to develop production, increase income, so the demandcapital to renovate mixed gardens to grow citrus trees of farmers increased,At the same time, the capital needs of small traders also increased, makingLoan sales increased significantly.
In 2007, loan turnover continued to increase strongly to 79,243 million VND.accounting for 97.97% of total short-term loan turnover, an increase of VND 15,980 million or an increase of25.26% compared to 2006. The reason is that recently production and business householdsespecially farming households, besides agricultural production peopleAlso receiving attention from local authorities, they are guided and encouraged.encourage the cattle raising movement and expand the citrus growing area, while at the same time implementing
Teaching assistant : Nguyen Thuy An 70 Student : Phung Thi Bich Thuy
Formatted: Bullets and Numbering
Analysis of short - term credit activities at Song Phu Rural Development Bank
Currently, the process of intercropping increases the number of rice crops and one color crop, so the capital needs of the people are increasing.increase.
b. Business loans :
In 2006, loan turnover was 3,920 million VND, an increase of 60 million VND.with a growth rate of 1.55% compared to 2005. In 2006, the bank attractedAdd new customers while maintaining good relationships with existing ones.Businesses are traditional customers so loan sales have increased.go up.
By 2007, loan turnover had decreased to 1,640 million VND, down2,280 million VND or 58.16% compared to 2006. The reason for the decrease is due to banksStock banks in the area have offered attractive interest rates exclusively for customers.business to attract customersis business.
Teaching assistant : Nguyen Thuy An 71 Student : Phung Thi Bich Thuy
Analysis of short - term credit activities at Song Phu Rural Development Bank
To see the rate of increase and decrease in the lending situation of the subjects using the
Capital use over three years, we consider the following figure:
g
v
Million Dong
Million VND Loan turnover by target customers
Million Dong
100000
80000
60000
40000
20000
0
Doah C number of customers :Private Enterprise
n
stain
Household loan salesexport, individual
DN
Production households, individuals
Total loan turnover
2005 2006 2007
Year
Figure 1 1 : Loan turnover graph by subject Loan turnover for private enterprises
capital over 3 years
2005-2007
answer
.3 Loan turnover by purpose of use
The bank has closely followed the situation of capital needs of farmers. At the same time, thanks to the team
prefer:
4.3.1 Capital
Household loan salesproduction, individual
N
capital of
Uncle
n and ư T n g n k d o a t i n h i n g s h o u n g h e n g s h o u n g h e n g s h o u n g h e n gmenstruation
have many
With the help of local authorities, the bank has identified
Teaching assistant : Nguyen Thuy An 72 Student : Phung Thi Bich Thuy
Note:
Formatted: Bullets and Numbering
Analysis of short - term credit activities at Song Phu Rural Development Bank
Determine capital needs of economic sectors in the area and have a plan for the infrastructure.appropriate loan structure. Therefore, the bank's loan turnover increased over the years.The increase in short-term lending is mainly in line with the economic development trend.economy and capital needs for production of people.
Contribute to the implementation of the socio-economic development target program together.with the business orientation of Vietnam Bank for Agriculture and Rural Development, Vinh provinceLong, Tam Binh district and the actual situation of the locality. BranchSong Phu Agricultural and Rural Development Bank has expanded credit investment to remote communes.Remote areas shift investment to expand credit objects, investment structure is graduallySteps determined on the basis of economic structure shift of the district.
Table 8: LOAN TURNOVER BY PURPOSE OF CAPITAL USE
Unit: million VND
Target | Year | Difference | |||||
2005 | 2006 | 2007 | 2006/2005 | 2007/2006 | |||
amount | % | amount | % | ||||
1.KTMMDV | 17,762 | 20,743 | 25,682 | 2,981 | 16.78 | 4,939 | 23.81 |
2. Agriculture | 40,295 | 45,022 | 52,569 | 4,727 | 11.73 | 7,547 | 16.76 |
Animal husbandry | 1,433 | 1,960 | 3,069 | 527 | 36.77 | 1.109 | 56.58 |
KTTH | 38,862 | 43,062 | 49,500 | 4,200 | 10.81 | 6,438 | 14.95 |
3. Other loans | 3,279 | 1 . 418 | 2,632 | - 1,861 | - 56.75 | 1,214 | 85.61 |
Total | 61,336 | 67,183 | 80,883 | 5,847 | 9.53 | 13,700 | 20.39 |
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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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Vietnamese law on loan contracts in the field of banking credit - 28 -
Correlation Chart Between Inflation Fluctuation and Loan-to-Assets Dispersion
(Source: Credit Department of Song Phu Bank for Agriculture and Rural Development ))
To see the reasons for the increase or decrease in loan sales, we
Million Dong
Analyze the following objects in turn:
a.Agricultural loans
Teaching Assistant : Nguyen Thuy An 73
Bich Thuy
Note:Trading and Service Business
Slave Village : Heroic Thi
Other loans
Total sales forget a loan
Year
Figure 12: Short-term loan sales chart by purpose of usecapital over 3 years 2005-2007
Formatted: Bullets and Numbering
Analysis of short - term credit activities at Song Phu Rural Development Bank
Implementing the Party and State's policy of "diversifying forms"agricultural production and combining these forms together to achieve resultshighest" has achieved very high results. Seeing the benefits of borrowing from banksTo expand agricultural production, people's capital needs are increasing.The higher the bank's agricultural lending salesincrease.
Loan turnover in 2005 was 40.29 5 million VND. In 2006, turnoverLoans increased to 45,022 million VND, an increase of 4.72 7 million VND, with an increase rate of11.7 3 % compared to 2005.
By 2007, loan turnover increased to 52,569 million VND, an increase ofThe volume was 7,547 million VND, or 16.76% compared to 2006, the loan turnover increased bydue to increased investment capital in the livestock and general economic sectors.
Short-term lending subjects in agriculture are mainly lendingcrop, livestock and general economics.
Animal husbandry:
This is the subject of interest to the bank, according to the direction of livestock development.raising in 4 communes. Short-term livestock loans are given to children.breeds, food and medicine for livestock such as pigs, poultry, fish, cows...
The livestock loan turnover in 2005 was 1.433 million VND, accounting for3.56% of total agricultural lending turnover.
In 2006, livestock loan turnover increased to 1,960 million VND,accounting for 4.35% of agricultural lending turnover, an increase of VND 525 million or 36.59% compared tocompared to 2005. The reason for the increase is that in recent years people have beenAgricultural officials regularly hold training courses on animal husbandry methods.raising and providing high-yield breeds, so people need to borrow capital for raising livestock.population has increased. At the same time, expanding investment in livestock farming also helps peoplePeople can make use of their free time, increase their income, improve their lives andcontribute to the transformation of local livestock structure, gradually eliminating the monopolyrice cultivation
Teaching assistant : Nguyen Thuy An 74 Student : Phung Thi
Bich Thuy
Formatted: Bullets and Numbering
Formatted: Bullets and Numbering
Analysis of short - term credit activities at Song Phu Rural Development Bank
By 2007, livestock lending continued to increase, reaching3,069 million VND, with an increase of 1,109 million VND, or an increase of 56.58% compared to2006. The reason is that people are supported by the government and officials.local agricultural department so they boldly invested in livestock farming.
General economics:
Currently there are three types of synthetic economy: VAC, VACR, VR.These models are encouraged for investment by Song Phu Bank for Agriculture and Rural Development and have attractedattracted the majority of people, although only recently applied but salesGeneral economic lending always accounts for a high proportion (over 94%) of total sales.agricultural loans, this form helps to use capital flexiblyMoreover, comprehensive investment will help people to spread risks in production,leading to a reduction in bank credit risk.
In 2006, loan turnover reached a high level of 43,062 million VND, an increase of 4,200 million VND, with a growth rate of 10.81 % compared to 2005. Based on the advantagesBecause of the above points, more and more people choose the mixed economic model.is the main reason for the increase in loan sales in this sector.
In 2007, loan turnover continued to increase to 49,500 million VND, an increase of 6,438million VND, or 14.95% compared to 2006. Loan turnover in this sectorThe increase is to match the economic restructuring process in the locality, increasegradually restructure agriculture in the industry structure.
b. Commercial and service business loans :
To keep up with the diversification trend, in addition to serving agriculture,Besides the main business sector, Song Phu Bank for Agriculture and Rural Development also pays great attention to the lending sector.commercial and service loans. Because this is the basis for the urbanization process of the locality.Therefore, the loan turnover in the past three years has tended to increase.increase.
In 2006, loan turnover was 20,743 million VND, an increase in quantity of 2.981 million VND or an increase in rate of 16.78 % compared to 2005.
Teaching assistant : Nguyen Thuy An 75 Student : Phung Thi Bich Thuy
Analysis of short - term credit activities at Song Phu Rural Development Bank
In 2007, loan turnover continued to increase to 25,682 million VND, an increase of4,939 million VND, with an increase of 23.81% compared to 2006.
The proportion of loan turnover in this sector has also increased over the years.Specifically, in 2005, loan turnover accounted for 28.96%, in 2006 it increased to 30.88% andBy 2007, this ratio was raised to 31.75%. This shows that the bankhas gradually shifted the investment structure for this field.
b. Lending for other capital purposes :
In addition to agriculture, small-scale industry, trade and services, Song Phu Agricultural and Rural Development Bank also provides loans to a number ofOther uses of capital such as:Loans for discounting valuable papers, loans for foreign labor cooperation... Although profitableThe profits from these loans are very low but the investment inThis activity poses little risk to the bank.
In 2006, loan turnover was 1,418 million VND, down 1.86 1 million VND ordecreased by 56.75 % compared to 2005. The reason for the decrease is that in 2006 there was noThere is a loan of valuable papers.
In 2007, loan turnover increased to 2,632 million VND, an increase of 1,214 million VND.VND or 85.61% compared to 2006. The trend of working abroad inIn recent years, the number of loans for cooperation has increased significantly, so that the sales of loans for cooperationForeign workers account for an increasingly high proportion and in 2007 there was agenerate many loans secured by valuable papers. At the same time, the bankCentralThe Government has a policy to lend money to officials and employees to improve their family economy.improve the material life of state officials along with encouraging worksecondary economy for households at local government levels.
Short-term loan turnover by capital use purpose is shownSpecifically through the following image:
Million Dong
Teaching assistant : Nguyen Thuy An 76 Student : Phung Thi Bich Thuy
Analysis of short - term credit activities at Song Phu Rural Development Bank
60000
50000
40000
30000
20000
10000
0
2005 2006 2007
Trading and Service Business
Agriculture Other Loans
Year
Figure 12: Graph of short-term loan sales by purpose of use
Capital use over 3 years 2005-2007
In summary, short-term loan turnover of Song Phu Agricultural and Rural Development Bank over 3 yearsThere has been a marked increase in the year. The bank is increasingly performing its role better.In lending for agricultural and rural development, the banking networkThe daily sales are growing stronger and wider to farmers. Loan salesThe agricultural sector accounts for a large proportion of short-term lending, while business lendingTrade and service businesses account for a lower proportion. However, banks alsohas gradually expanded commercial and service lending. This expansion is very suitable foreconomic development trend of the district. In the future, the bank will increaseloan turnover of industries and gradually increasing the proportion of trade-service industriesservices and other industries in short-term bank lending.
To make lending more effective, banks should pay more attention.to classify and analyze the economic situation as well as the debt repayment ability ofCustomers who have relationships with banks to expand their investments need to retain thoseTraditional customers have had a good relationship with the bank up to now.
4.3.2 Debt collection turnover
Along with increasing loan sales, Song Lam branch of NHNo&PTNTPhu constantly focuses on debt collection because debt collection is very difficult.
Teaching assistant : Nguyen Thuy An 77 Student : Phung Thi Bich Thuy