into a leading competitive advantage. Therefore, LienVietPostBank's staff is young, dynamic, and enthusiastic with an average age of 30. At the same time, they are also qualified and experienced in the banking industry. This makes a big difference in the management and working style of employees. However, LienVietPostBank still pays special attention to training and fostering human resources. Training programs are conducted according to the most advanced training methods, combining theory and practice. LienVietPostBank's remuneration policy is built to be flexible and highly competitive with the purpose of attracting and encouraging employees to join and stay long-term for their career.
In 2011, Vietnam Post Corporation (now Vietnam Post Corporation) contributed capital to Lien Viet Bank with the value of Postal Savings Service Company (VPSC) and cash. , Lien Viet Bank has been allowed by the Prime Minister and the Governor of the State Bank of Vietnam to change its name to Lien Viet Post Commercial Joint Stock Bank. The association between Vietnam Post Corporation and LienVietBank is considered the largest M&A event in Vietnam in 2011. This is the first capital contribution deal and especially in the field of finance - banking in Vietnam when a A state-owned corporation (Vietnam Postal Corporation) contributes capital to a joint stock enterprise with both money and value of a company (VPSC), marking the birth of the first Postal Bank model. first in Vietnam. Lien Viet Post Bank received the Postal Savings Company status quo, ensuring the rights of depositors.
This is also the connection between two brands: Post Office (with a long history of development) and LienVietBank (with a place in the hearts of customers). Great value is directed to three houses: People's houses - State houses - Business houses. First of all, people will enjoy more amenities and banking products and services, continued
Next, LienVietBank reaches a new level in terms of network and services, then helps VPSC promote efficiency, contributing to increasing revenue for Vietnam's postal industry as well as VNPT.
After 13 years of construction and development, LienVietPostBank has developed with a network of operations widely distributed across 63 Provinces/Cities nationwide, including 1 Head Office; 02 Exchanges; 540 branches and offices assigning and operating rights to more than 10,000 transaction points on the system of Post Offices/Commune Cultural Post Offices of Vietnam Post Corporation are in the process of preparing to deploy the provision of products and services. .
2.1.2. LienVietPostBank's organizational structure
The organizational structure model at Lien Viet Post Joint Stock Commercial Bank is presented in Figure 2.1. Organizational structure model at Lien Viet Post Office Joint Stock Commercial Bank. The central agency of Lien Viet Post Office Joint Stock Commercial Bank is the Head Office. Through the Operational Divisions, the Head Office manages the entire network including Banks and Transaction Offices throughout the country. On September 23, 2017, the Chairman of the Board of Directors issued Decision 884/2017/QD-HĐQT on the organizational structure of the Head Office. This is an organizational model with extensive participation of Board Members in the Bank's regular work, concretizing and stabilizing the functional block model.
44
GENERAL MEETING OF SHAREHOLDERS SUPERVISORY BOARD
BOARD OF DIRECTORS
Committee
Committee | Committee | Committee | Committee | Committee | Trial committee | Committee | Committee |
ALCO Council , | |
combination | Labour | Opposite to | Terrible | Chien | Credit | RR management and | Human resources | Manage | Legislation, |
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BOARD OF GENERAL DIRECTORS
CONTROL PLATE
BUSINESS SECTION CONSULTATION SECTION SUPPORT SECTION
- Investment banking sector
- Strategic customer block
- Capital resources block
- Strategic research and international business relations department
- Product block
- PGDBD management block
- Appraisal block
- Legal and risk management department
- Management and development block
- Payment block
Internal audit department
- Human resources department
- Financial sector
- IT department
- Office block
- Representative offices of NHBDLV regions
Business support center
58 Branches
Large transaction offices
Appraisal team
Business control and handling team
in debt
Source: LienVietPost annual report 2015
Figure 2.1 - Organization chart of Lien Viet Post Office Joint Stock Commercial Bank
The functions, tasks, and powers of the management departments at Lien Viet Post Joint Stock Commercial Bank are as follows:
- “Board of Directors: Follow the Regulations on organization and operation of the Board of Directors issued by the Board of Directors.
- Supervisory Board: Follow the Regulations on organization and operation of the Supervisory Board issued by the Board of Directors.
- Board of General Directors: Follow the Regulations on organization and operation of the Board of General Directors issued by the Board of Directors.
- “Internal audit department: Independently and objectively inspect, review and evaluate the internal inspection and control system; Independently evaluate the appropriateness and compliance with established policies, procedures and processes.
- “Assisting committees of the Board of Directors include: Banking and Postal Committee; Technology Committee; Strategic Committee; Business Committee & ALCO; Legal Committee, Risk Management & Prevention; Credit Committee; Committee for prevention and treatment of overdue waste; Personnel Committee; Cost Management Committee; Office of the Board of Directors. These Committees are assisting agencies for the Board of Directors, with an advisory role to help the Board of Directors fulfill their functions and tasks well.
The functions and tasks of the operational blocks are as follows:
Support array
- Payment Division: Organize and carry out domestic and international money transfer and payment activities in accordance with the law, advise the Board of Directors on activities and develop payment products.
- “Finance sector: Organize, implement, support, inspect and supervise accounting and financial work at the Head Office and the entire Bank in accordance with the legal regulations of the State, the industry and the internal Bank. Perform accounting operations at the Department (internal, interbank, general accounting),...
- Human resource management division: “Advising the General Director in planning and developing human resources according to the Bank's development strategy. Organize, monitor and measure the implementation of activities related to human resource management throughout the system.
- IT Division: Organizes the construction, operation and management of information technology systems including hardware, software, data and related equipment of the entire Bank system. Manage information technology assets of the entire bank...
- Office block: “Effectively advise the General Director on policies and administrative activities throughout the Bank. Organize administrative activities at Headquarters,...
- Regional LPB representative offices: act as a bridge between banks and headquarters, solving problems within assigned authority.
Consulting area:
- Product division: “advising the Board of Directors on developing corporate customers, individual customers and performing customer support operations,...
- Postal Banking Division: designs, deploys and manages banking products and services. Manage and develop branch network,...
- Appraisal division: Appraisal and re-appraisal of bank credits.
- Legal and Risk Management Department: “Advising the Board of General Directors on issues related to risk management and legal issues throughout the Bank system. Organize, implement, and monitor centralized risk management throughout the system,...
Business segment:
- Digital banking sector: “Business planning; Directly providing digital banking products/services,...
- Strategic customer block: “Providing products/services to strategic customers, managing strategic customers and ODA capital.
- Capital resources department: Perform capital management and capital trading tasks.
- Strategic research and international business planning department: “creating international business and relations, strategic analysis and economic analysis to advise the Board of Directors on the Bank's development strategy.
- Branches and transaction offices: directly provide products, services and customer support.
2.1.3 Overview of LienVietPostBank's business results in the period 2017-2019
2.1.3.1 Capital mobilization activities
Table 2.1 - Results of capital mobilization activities at LienVietPostBank in the period 2017 - 2019
Unit: Billion VND
Target
2017 | 2018 | 2019 | ||||
Number | Billion | Number | Billion | Number | Billion | |
money | important (%) | money | important (%) | Money | important (%) | |
Total mobilized capital | 152,131 | 100 | 172,438 | 100 | 199,655 | 100 |
1. According to term | - | - | - | - | - | - |
1.1. Short term | 49,632 | 32.6% | 61,285 | 35.5% | 58,521 | 29.3% |
1.2. Medium and long term | 102,499 | 67.38% | 111,153 | 64.5% | 141,134 | 70.7% |
2. According to currency | - | - | - | - | - | - |
2.1. VND | 127,943 | 84.1% | 145,370 | 84.3% | 163,718 | 82.0% |
2.2. Foreign currency | 24,188 | 15.9% | 27,068 | 15.7% | 35,937 | 18.0% |
Source: Business results – LienVietPostBank period 2017 - 2019
Capital mobilization is an activity that LienVietPostBank always focuses on. LienVietPostBank has applied diverse forms of capital mobilization, with reasonable interest rates, so in the period 2017 - 2019, capital mobilization results were relatively good.
In 2017, LienVietPostBank mobilized 152,131 billion VND. In 2018, with the banking and financial market facing many difficulties, capital resources became scarce, so competition in capital mobilization activities among banks became increasingly fierce through the race for deposit interest rates. Capital mobilization between commercial banks. With flexible interest rate adjustments and promotional programs, by the end of 2018 LienVietPostBank's total mobilized capital reached 172,438 billion VND. LienVietPostBank's main source of mobilization is from economic organizations and residents. By 2019, the bank's total mobilized capital had increased to VND 199,655 billion. In terms of the structure of capital mobilized over time, it can be seen that medium and long-term capital always accounts for over 65%. If considering the structure of capital mobilized by currency, capital mobilized in VND always accounts for over 82%.
This is the result of improving and applying technology, constantly developing products, utilities, and civilized transaction qualities of officers throughout the banking system. Furthermore, in recent years, LienVietPostBank has actively applied many flexible and soft solutions regarding interest rate policies, customer policies, and increased diversification of capital mobilization forms with many different terms. , offering attractive promotional products.
2.1.3.2 Lending activities
Corresponding to the growth of mobilized capital, LienVietPostBank's lending activities in the period 2017-2019 grew strongly. Specifically, looking at chart 2.1, we see that outstanding loans in 2017 were VND 99,319 billion.
By 2019, outstanding loans had reached 140,522 billion VND, an increase of 41,203 billion VND, equivalent to 41.48% within 3 years.
Unit: Billion VND
160000
140522
140000
119193
120000
99319
100000
80000
60000
40000
20000
0
2017
Year 2018 Year 2019
Loan balance
Source: LienVietPost's annual report over the years 2017, 2018, 2019
Figure 2.1: LienVietPostBank's loan balance in the period 2017-2019
2.1.3.3 Banking service activities
Debt securities investment and business activities : Effectively develop bond operations (including investment, trading, term trading of bonds...) in the market. In 2019, the Bank prioritizes investing in government bonds to improve the effective use of capital, liquidity and good management of the Bank's asset quality. In addition, the successful issuance of VND 3,100 billion of long-term bonds in 2019 has contributed to improving the capital adequacy ratio as well as the ratio of short-term capital for medium and long-term loans of LienVietPostBank.