Mobilizing savings deposits at the Vietnam Bank for Agriculture and Rural Development - Thanh Oai branch

LIST OF ABBREVIATIONS

STT

Acronym	Write in full
1	Agribank	Bank for Agriculture and Rural Development Vietnamese village
2	industrialization, modernization	Industrialization, modernization
3	DCTC	Financial institution
4	FTP	Internal capital transfer regulations
5	HSC	Head office
6	State Bank of Vietnam	State Bank
7	Commercial Bank	Commercial Bank
8	ODA	Official Development Assistance
9	ROA	Return on assets
10	ROE	Return on equity
11	TCTD	Credit institution
12	TGTK	Savings deposit
13	TSDB	Collateral

Maybe you are interested!

Current Status of Savings Deposits at Binh Phuoc Industrial and Commercial Bank
Research on factors affecting the decision to choose savings deposit service of individual customers at Vietnam Joint Stock Commercial Bank for Investment and Development - Thua Thien Hue branch - 17
Types of Savings Deposits at Dong A Commercial Joint Stock Bank - Hue Branch
Mobilizing individual customer deposits at Vietnam Joint Stock Commercial Bank for Industry and Trade - Tien Son Industrial Park Branch - 2
Evaluating customer satisfaction with savings deposit services at National Citizen Commercial Joint Stock Bank NCB Tan Huong Transaction Office - 3

LIST OF TABLES, CHARTS, FIGURES

LIST OF TABLES:

Table 2.1. Structure of mobilized capital sources 2016 - 2019 of Agribank Thanh Oai

................................................................ ................................................................ ..................... 44

Table 2.2. Outstanding loans at Agribank Thanh Oai in the period 2016 - 2019 46

Table 2.3. Business results of Agribank Thanh Oai 47

Table 2.4. Forms of savings deposits at Agribank Thanh Oai 48

Table 2.5. Structure of capital mobilized from savings deposits of Agribank Thanh Oai in the period 2016-2019 60

Table 2.6. Characteristics of customers of banks surveyed

................................................................ ................................................................ ..................... 65

Chart 2.1. Scale of individual customers in the period 2016-2019 51

Chart 2.2. Percentage of individual customers making term deposits in the period 2016-2019

................................................................ ................................................................ ..................... 52

Chart 2.3. Average savings deposit mobilization balance by number of customers of Agribank Thanh Oai in the period 2016-2019 54

Chart 2.4. Size of transaction savings accounts over the years 56

Chart 2.5. Growth rate of savings deposit mobilization of Agribank Thanh Oai in the period 2016 - 2019 Agribank Thanh Oai by term in the period 2016 - 2019 60

Chart 2.6. Structure of capital sources mobilized from savings deposits of 60

Chart 2.7. Structure of savings deposit mobilization by product line at Agribank in the period 2016 - 2019 61

LIST OF DRAWINGS:

Figure 2.1: Organizational chart of Agribank Thanh Oai branch 41

INTRODUCTION

1. Reasons for choosing the topic

In the activities of commercial banks, capital mobilization is one of the main and most important operations. Currently, the system of commercial banks is developing rapidly in quantity, so the competition in capital mobilization is very fierce, even vital, so strengthening capital mobilization, ensuring the quality and quantity of capital is always the top concern of any commercial bank. Due to the nature of the activities of a financial intermediary is to borrow to lend and provide other financial services, capital mobilization is a decisive factor for the business activities of commercial banks, so commercial banks pay great attention to capital mobilization from savings deposits. The "race" to increase interest rates in previous years shows the fact that Vietnamese commercial banks are facing many difficulties in expanding mobilized capital to meet the increasing business requirements to meet the increasing needs of the economy.

Thus, in order to expand and improve the efficiency of general business operations, commercial banks must start by expanding and improving the efficiency of capital mobilization. However, capital mobilization by commercial banks comes from many different sources and is subject to the influence of many factors, both objective and subjective. Therefore, depending on each operating condition, commercial banks propose measures to mobilize appropriate resources. From these characteristics, at any time, capital mobilization of savings deposits is set by commercial banks as a priority task and appropriate solutions must be found to achieve the goal.

Vietnam Bank for Agriculture and Rural Development - Thanh Oai Branch is a state-owned commercial bank located in Thanh Oai district, its main customers are farmers and agricultural workers in rural areas with a huge demand for loans and an increasing trend. In fact, in recent times, the savings deposit activities of Agribank Thanh Oai have basically met the requirements.

business in each stage, at the same time, serving quite well the development strategy of Agribank Thanh Oai in the medium and long term. In addition to the achieved results, the savings deposit mobilization of Agribank Thanh Oai also raises a series of existing issues such as: the sustainability of savings deposit mobilization activities, the legality or risk control in this activity, because in recent years, the business environment has been very complicated, so the potential risks in business are high not only in the list of output products but also in the input products of capital mobilization. The complicated nature of risks also makes it difficult for Agribank Thanh Oai to mobilize resources, and increases the cost of capital mobilization compared to most other commercial banks, posing an urgent requirement now and in the future to improve the efficiency of mobilizing savings deposits, thereby helping to improve the business performance of Agribank in general, and Agribank Thanh Oai in particular.

For all the above reasons, the author chose the topic: "Mobilizing savings deposits at the Bank for Agriculture and Rural Development of Vietnam - Thanh Oai branch" as the topic of his master's thesis in economics, majoring in Banking and Finance.

2. Research status related to the topic

Mobilizing savings deposits of commercial banks is an issue that receives the attention of many researchers. Some specific research projects:

- Pham Dinh Duong (2010), Capital mobilization at the Bank for Agriculture and Rural Development for socio-economic development in Tien Phuoc district, Quang Nam province , Master's thesis, Ho Chi Minh National Academy of Politics. The author has systematized the theoretical basis of capital mobilization at commercial banks; analyzed and evaluated the current situation of capital mobilization at Agribank for socio-economic development in Tien Phuoc district, Quang Nam. On that basis, a number of solutions have been proposed to promote capital mobilization activities. However, when mentioning the solution, the author did not mention improving the level of banking technology, because in today's era, banking technology plays a very important role in capital mobilization activities of commercial banks.

- Tran Xuan Hoa (2011), Solutions to expand capital mobilization at the Bank for Agriculture and Rural Development - Thanh Xuan Branch , Master's thesis, Academy of Finance. The thesis focuses on researching capital mobilization activities and capital mobilization quality of Agribank Thanh Xuan, using data from 2009 - 2011 as a basis for evidence. Combining research methods such as: analysis - synthesis method, descriptive statistics method, comparison method... From there, find out the causes and draw out the limitations that still exist in capital mobilization activities at the Branch. Propose solutions to expand capital mobilization at the Bank for Agriculture and Rural Development - Thanh Xuan Branch. However, the author has not mentioned the orientation to expand capital mobilization at Agribank Thanh Xuan, because this is the important basis for proposing solutions in the thesis.

- Nguyen Xuan Huynh (2011), Solutions to improve capital mobilization efficiency at the Bank for Agriculture and Rural Development - Nam Ha Noi Branch , Master's thesis, Academy of Finance. The thesis systematizes the theory of capital mobilization activities of commercial banks, pointing out the current situation of capital mobilization at the Bank for Agriculture and Rural Development - Nam Ha Noi Branch. From there, solutions are proposed to improve capital mobilization efficiency at the Bank for Agriculture and Rural Development - Nam Ha Noi Branch. However, when analyzing the current situation, the author did not mention the factors of infrastructure and banking technology that Agribank Nam Ha Noi is applying.

- Nguyen Thi Hai (2016), Improving the efficiency of capital mobilization at the Vietnam Joint Stock Commercial Bank for Industry and Trade, Hoan Kiem branch , master's thesis, National Economics University. The thesis has systematized theoretical issues on the situation of capital mobilization at the bank, proposed a number of solutions to improve the efficiency of capital mobilization at the Vietnam Joint Stock Commercial Bank for Industry and Trade, Hoan Kiem branch. However, the author has not analyzed, compared the industry correlation, compared between the bank under study with other banks or with the industry average.

- Tran Phu Cuong (2017), Solutions to enhance capital mobilization at the Bank for Foreign Trade of Vietnam , master's thesis, Banking Academy. The thesis has pointed out solutions to enhance capital mobilization at the bank. However, the solutions proposed are not really suitable for the research situation, nor has it been evaluated which solution is the best in capital mobilization activities or which solution reduces costs while still mobilizing capital effectively.

- Nguyen Thi Ngoc Lan (2017), Solutions to expand and improve the quality of capital mobilization at the Bank for Agriculture and Rural Development - Thang Long Branch , Master's thesis, Banking Academy. The author of the thesis has built a theoretical framework and analyzed the current situation of expanding and improving the quality of capital mobilization at Agribank Thang Long Branch, proposed a number of meaningful solutions to continue expanding and improving the quality of capital mobilization at Agribank Thang Long Branch.

The above mentioned research works have generally mentioned the theoretical basis of capital mobilization activities at commercial banks, and have proposed many solutions of theoretical and practical significance to improve the efficiency of capital mobilization activities at commercial banks selected for research. However, the above mentioned research works all have quite old data and figures, some solutions on the application of banking technology have not updated new technologies and new methods in capital mobilization activities, and there has been no research on the scope of Agribank Thanh Oai branch. Therefore, the author chose the topic "mobilizing savings deposits at the Vietnam Bank for Agriculture and Rural Development Thanh Oai branch" as a topical issue, of theoretical and practical significance.

3. Research purpose and tasks

3.1. Research purpose

From the theory and practice of capital mobilization of savings deposits at the Bank for Agriculture and Rural Development of Vietnam, Thanh Oai branch, the thesis proposes a number of solutions to improve the efficiency of capital mobilization of savings deposits at the bank.

Vietnam Bank for Agriculture and Rural Development, Thanh Oai branch in the coming time.

3.2. Research tasks

- Systematize the theoretical basis for mobilizing savings deposits of commercial banks

- Analyze the current situation of capital mobilization of savings deposits of the Vietnam Bank for Agriculture and Rural Development - Thanh Oai Branch to find out the achievements as well as limitations and causes of limitations in capital mobilization of savings deposits of Agribank Thanh Oai.

- Propose some solutions to improve the efficiency of capital mobilization from savings deposits at the Vietnam Bank for Agriculture and Rural Development - Thanh Oai branch.

4. Research object and scope

4.1. Research subjects

Mobilizing savings deposits at Vietnam Bank for Agriculture and Rural Development - Thanh Oai branch

4.2. Scope of research

- Regarding content: the thesis focuses on researching the capital mobilization activities of savings deposits of individual customers.

- About space: The thesis studies the activities of mobilizing savings deposits from individual customers at the Vietnam Bank for Agriculture and Rural Development - Thanh Oai branch.

- About time: The thesis studies capital mobilization of individual customers' savings deposits at Agribank Thanh Oai in the period 2016-2019, with orientation to 2025.

5. Research methods and data collection

5.1. Method of collecting documents and data

- Primary data collection method

This method collects customers' opinions on the savings deposit mobilization activities of Agribank Thanh Oai.

The method of evaluating the quality of capital mobilization products is based on customer opinion surveys through questionnaires. Customer opinions on the quality of capital mobilization products are collected through direct survey activities from society, specifically these are residential customers who are using deposits at Agribank Thanh Oai. The official questionnaire is built through consulting with experts in the industry, creating survey forms and sending survey forms to customers, then collecting the evaluation opinions of each customer, then synthesizing the evaluation results for the average score of customers and comments, evaluation compared to the construction scale.

Table of criteria for product and service quality

- Reliability level criteria group

- Response level criteria group

- Service capacity criteria group

- Empathy level criteria group

- Criteria group on facilities and tangible means.

The study used a LIKERT 5 scale with scores ranging from 1 to 5 with the following significance levels:

Point