MINISTRY OF EDUCATION AND TRAINING
UNIVERSITY OF COMMERCE
DANG MINH LUYEN
LOAN QUALITY FOR SMALL AND MEDIUM ENTERPRISES AT VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE, BAC NINH BRANCH
MASTER'S THESIS IN ECONOMICS
HANOI, 2021
MINISTRY OF EDUCATION AND TRAINING
UNIVERSITY OF COMMERCE
DANG MINH LUYEN
LOAN QUALITY FOR SMALL AND MEDIUM ENTERPRISES AT VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE, BAC NINH BRANCH
Major: Banking and Finance Code: 834 02 01
MASTER'S THESIS IN ECONOMICS
SCIENTIFIC INSTRUCTOR: DR. NGUYEN THANH HUYEN
HANOI, 2021
COMMITMENT
I hereby certify that the content of the master thesis “ Quality of lending to small and medium enterprises at Vietnam Joint Stock Commercial Bank for Industry and Trade - Bac Ninh Branch ” is my own independent scientific research work. The data and research results in the thesis are honest and have clear origins.
THESIS AUTHOR
(Sign and print full name)
Dang Minh Luyen
INDEX
COMMITMENT i
TABLE OF CONTENTS ii
LIST OF ABBREVIATIONS vi
LIST OF TABLES vii
LIST OF CHARTS AND DIAGRAMS viii
INTRODUCTION 1
1. Urgency of topic 1
2. Overview of research situation on topic 2
3. Research objectives and tasks of topic 5
4. Research objects, scope and methods 6
5. Research methods 6
5.1. Data collection method 6
5.2. Data processing method 7
6. Structure of the thesis 7
CHAPTER I: THEORETICAL BASIS OF LOAN QUALITY FOR SMALL AND MEDIUM ENTERPRISES AT COMMERCIAL BANKS 9
1.1. OVERVIEW OF SMALL AND MEDIUM ENTERPRISE LOANS OF COMMERCIAL BANKS 9
1.1.1. Concept, characteristics, role of small and medium enterprises in the market economy 9
1.1.2. Lending to small and medium enterprises at commercial banks 14
1.2. QUALITY OF SMALL AND MEDIUM ENTERPRISE LOANS OF COMMERCIAL BANKS 21
1.2.1. Concept of loan quality for small and medium enterprises 21
1.2.2. The need to improve the quality of lending to small and medium enterprises 23
1.2.3. Indicators for assessing the quality of loans to small and medium enterprises of commercial banks 23
1.2.4. Factors affecting the quality of commercial bank loans to small and medium enterprises 28
1.3. EXPERIENCE IN IMPROVING THE QUALITY OF SMALL AND MEDIUM ENTERPRISE LOANS OF SOME COMMERCIAL BANK BRANCHES AND LESSONS FOR VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE - BAC NINH BRANCH 33
1.3.1. Experience in improving the quality of lending to small and medium enterprises of some commercial bank branches 34
1.3.2. Lessons learned for Vietnam Joint Stock Commercial Bank for Industry and Trade - Bac Ninh Branch 36
CHAPTER 1 CONCLUSION 38
CHAPTER II: CURRENT STATUS OF LOAN QUALITY FOR SMALL AND MEDIUM ENTERPRISES AT JOINT STOCK COMMERCIAL BANKS 39
VIETNAM INDUSTRY AND TRADE – BAC NINH BRANCH 39
2.1. OVERVIEW OF VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE - BAC NINH BRANCH 39
2.1.1. Formation and development process 39
2.1.2. Functions and tasks of branch 39
2.1.3. Organizational structure and operations 41
2.1.4. Business performance of Vietnam Joint Stock Commercial Bank for Industry and Trade - Bac Ninh Branch in the period of 2017-2019 42
2.2. CURRENT STATUS OF LOAN QUALITY FOR SMALL AND MEDIUM ENTERPRISES AT VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE - BAC NINH BRANCH 48
2.2.1. Current status of lending activities to small and medium enterprises at Vietnam Joint Stock Commercial Bank for Industry and Trade - Bac Ninh Branch 48
2.2.2. Survey on the current status of lending quality for small and medium enterprises at Vietnam Joint Stock Commercial Bank for Industry and Trade - Bac Ninh Branch in the period 2017-2019 53
2.3. GENERAL ASSESSMENT OF THE QUALITY OF SMALL AND MEDIUM ENTERPRISE LOANS AT VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE - BAC NINH BRANCH 64
2.3.1. Achievements 64
2.3.2. Existing problems and limitations 66
2.3.3. Causes of the problems and limitations 67
CHAPTER 2 CONCLUSION 72
CHAPTER 3: SOLUTIONS TO IMPROVE THE QUALITY OF LOANS FOR SMALL AND MEDIUM ENTERPRISES AT VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE - BAC NINH BRANCH 73
3.1. ORIENTATION TO IMPROVE THE QUALITY OF SME LOANS AT VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE - BAC NINH BRANCH BY 2025 73
3.1.1. Business development strategy 73
3.1.2. Orientation to improve the quality of lending to small and medium enterprises at Vietnam Joint Stock Commercial Bank for Industry and Trade - Bac Ninh Branch 75
3.2. SOLUTIONS TO IMPROVE THE QUALITY OF LOANS FOR SMALL AND MEDIUM ENTERPRISES AT VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE - BAC NINH BRANCH 75
3.2.1. Choosing to apply flexible and reasonable lending policies for small and medium enterprises 76
3.2.2. Improving the quality of loan appraisal 80
3.2.3. Strengthening Bank marketing activities 82
3.2.4. Solutions to improve the effectiveness of the internal control system 83
3.2.5. Effective handling of overdue and bad debts 84
3.2.6. Improve the qualifications of staff and constantly practice professional ethics 84
3.2.7. Strengthening coordination between departments and relevant agencies 85
3.2.8. Strengthening credit risk management in lending to small and medium enterprises85
3.2.9. Establish and use reserve funds in accordance with regulations 86
3.3. SOME RECOMMENDATIONS 86
3.3.1. Recommendations to the state management agency of Bac Ninh province 87
3.3.2. Recommendations to the State Bank 87
3.3.3. Recommendations to Vietnam Joint Stock Commercial Bank for Industry and Trade 89
3.3.4. Recommendations for small and medium enterprises 90
CHAPTER 3 CONCLUSION 92
CONCLUSION 93
LIST OF REFERENCES 94
LIST OF APPENDIXES 96
LIST OF ABBREVIATIONS
STT
Abbreviations | Interpret | |
1 | BIDV | Joint Stock Commercial Bank for Investment and Development of Vietnam |
2 | DNCV | Outstanding Loans |
3 | DSCV | Loan Sales |
4 | DSTN | Debt collection turnover |
5 | SMEs | Small and Medium Enterprises |
6 | Industrial Park | Industrial Park |
7 | MTV | A member |
8 | State Bank of Vietnam | State Bank |
9 | Commercial Bank | Commercial Bank |
10 | TCTD | Credit institutions |
11 | TMCP | Joint stock trading |
12 | Ltd. | Limited liability |
13 | Vietinbank | Vietnam Joint Stock Commercial Bank for Industry and Trade |
14 | VAMC | Credit Institutions Asset Management Company Limited Vietnam use |
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