Solutions for developing application information systems in the current Vietnamese banking system - 17

(2)

In the formal lending sector, if a borrower's project fails to qualify for credit with a loan of size V i at a concessional interest rate r i < r , the borrower can accept a zero-interest project option by paying the lender both β V i and the future profits of the project.

In addition to being characterized by the level of productive assets, each borrower i is also characterized by an individual time preference factor p Є | p , p | over the loan period from which future profits are deducted. We assume that defaulters will not be able to borrow any more money in the future, and so the deductible profit for each borrower i is given by:

 B  1 - p    - 1 - r  V

 i 

(3)

i ii





p i 

By completely differentiating the profit function of borrower i with respect to V i and r i , we get the slope of the iso-profit curve of borrower i in the interval {V i , r i } :

dV i dr i

 V i  1 - p 

 1 - p - p V   -  1  r   - p  i

(4)

p

viii

i

Note that the slope of the lender's iso-profit curve is

inversely proportional to the value of V < (>)1

 r i-c 



-p .

i p   1  r - 

v  i  

In contrast, the borrower's iso-yield curve is consensus.

with V i < (1-p)/p v when (1-pp v V i )  - 1 r i   p v

 i , and vice versa, then it will be inversely

p

i

island. These relationships mean thatg value of V iat the point where the borrower's iso-profit curve curves backward is greater than the value of V iof the lender if 1+c> , or the borrower will lose money in the worst case. Suppose Bertrand competition exists among borrowers will decrease  L 0 at the debt equilibrium for borrower i. Equilibrium state

will occur at the point of tangency between the borrower's iso-profit curve and the

i

iso-lender's profit when  L 0 , depends on the preferred time factor

Borrower's treatment, see the following diagram:



B

i

P P

2 1

1

B

i

P

L  0

Diagram 01. Debt balance for borrowers

V i

V

* 2

V

* 1

r

r

r i

* *

1 2

The implementation of the TTTD system will bring about two positive and obvious effects that the thesis will analyze and describe in this section. To achieve that, we will consider

Borrower i has an initial useful asset k i (known to all potential lenders) but has p i  p , p (which is unknown to any potential lender)

Since borrowers with smaller grace periods will place more weight on the favorable interest rate in their future credit evaluations, and since p v >0, patient borrowers will need a smaller loan to achieve debt equilibrium. Conversely, less patient borrowers with larger grace periods will demand larger loans. Lenders prefer to make these larger, riskier loans because they will charge a higher debt equilibrium rate, as shown in Figure 01 with borrowers represented by p 2 >p 1 . Thus, for a given subset of borrowers with tangible assets k i , a borrower's loan demand will, in effect, reflect his grace period.

We can examine impatient borrowers with “very high” time preference factors. Such borrowers are unlikely to place much weight on the risk associated with large loans relative to their assets when evaluating future credit. Specifically, consider a borrower whose initial asset is k i but whose P i is sufficiently high that the expected (net) return from the equilibrium contract for a single loan is less than or equal to the return he would earn from borrowing in a series of smaller contracts. This would occur if the interest rate on each small loan was lower than the interest rate on the single large loan.

To see this more clearly, consider the cooperation coefficient, which reflects the ability of a given lender to cooperate with another lender to determine the current outstanding balance of borrower i . Borrowers who are found to have taken out multiple loans are penalized by not being given credit at preferential interest rates. Since the preferential time coefficient

The incentive is implicit information from the lender, so a borrower will prefer to borrow two

a loan of size ~ is better than a loan of size V if:

V i

 B  1 - p  V (   - 1 - r ( V (

  i    1 -   1 -

~    - 1 -~ 

i

~  i 

(5)

i i 



ii p 

p 2 V i 



r i 2 V i



p i 

i 

The effects of TTTD can be analyzed into blocking effects and push effects, both of which lead to a reduction in the estimated default rate.

calculate. See ( ) is the probability of borrowing multiple loans for borrower i , and the probability

Single loan and multiple loan respectively are

p ( i

( V i , k i ) and

~ p  ~ , k

 , then :

i V i i

p  1 -  p i  1 -  ~ p ii1 - 

(6)

See p*

(  ) is the preferential time coefficient that will balance the function (5), α increases

will reduce the ability to borrow multiple loans, so,

dp *  0 and 

d 

 0 .

b) Limiting credit risk through blocking effect

The blocking effect of TTTD is the direct change in lender profits that results from the ability to rely on the increased level of α to

prevent, eliminate borrowers with p  p *, p (previously in debt) out

from the loan portfolio. The push effect can be seen clearly in the borrower switching condition in formula (5) where the number of impatient borrowers who dare to take on multiple loans will be less as the probability of them being detected increases. Different levels of α will change the attitude of borrowers in the neighborhood of p*, higher α will encourage borrowers to take on a single loan, while lower α will encourage borrowers to take on multiple loans.

As information is shared more widely among borrowers through a credit information agency, we can consider the blocking effect and the push effect as two clear and positive effects brought about by information sharing. We will get

The overall effect of default information by partial differentiation of the estimated default coefficient in (6) with respect to α, we get:

p p ˆ

   1 -  - 

 1 -   p (-~ p 

(7)

 

(1 - ) 2

Because reflects changes in borrowers' attitudes about the probability of detection, so we can isolate the blocking effect by letting =0 to

 p  1 -  p (- ~ p 

 0

get:

i

  0

ii

 1 -  2

(8a)

From the total effect formula (7), we subtract the blocking effect in (8a), we will be able to isolate the repulsive effect in formula (8b) as follows:

p i

 -

 1 -    p (i- ~ p i 0

(8b)

 

 1 -  2

Note in (8b) that when 

(the borrower's sensitivity to

information sharing) increases, the default rate will decrease as the level of information sharing among lenders increases. In contrast, the blocking effect represents a direct effect of information sharing on the default rate; assuming that borrowers are unaware of α.

c) Improve credit quality through push effect

The push effect can be illustrated most clearly in the following way. First, we calculate the critical conversion value of p i *(α) to the borrower at a given tangible asset value k i from (5) to become:

 a  1 - ~  -p  V  

p *  a 

p 2 V​

~ ~

(

(9)

i

 1 -   1 - p  2 V   - 1 - ~ r  2 V -  - 1 - r ( V

Note that in the case where the boundary is drawn at point _ =0, any borrower with p i less than p will borrow money from only one borrower.

Even if there is no TTTD sharing, there:

1 - p 2 V

) 

 p ~  -p  V   

- 1 -ri V

i

p  p * 0  

~  

2 V

- 1 - r 2 V

- 1 -p V i

~ ~ 

 (  

(  ( . at the same time also

It should be noted that when above the critical level , at point

 1 - p  V (    - 1 - r (  V (

 i 

= 1 -

i ii







p  

then even poor borrowers

 1 - p 

~    - 1 - ~ r 

~  i 

2 V i 





2 V i



p  

Even the most patient would not dare to gamble with the system by borrowing multiple loans from multiple sources.

p

Diagram 02- Information sharing effect

i

Borrow many things

conversion line

p

Borrow a loan

=0

Share information

a

=0

Time coefficientpreferential time

i

Thus, for any level of information sharing < , then the level of information sharing

Information between credit institutions will determine whether the borrower group will take out multiple loans, as shown in diagram 02.

d) Bring economic benefits to borrowers

p )p p

As in formula (7), information sharing reduces the estimated default rate for every borrower with the initial asset coefficient k i . Then the profit equation for the lender in formula (1) can be used to obtain

Expression for the lender's estimated profit:

i i

i

 L  1 - p   r

-c  V i

- pV  1  c -  - F

(10)

When

p   1 -  p (  ~ p . Consider the lender's profit and V iis constant,

We can completely differentiate (10) with respect to α and r i to get

dr i

d 

p a  1  r i - 

p

  1 -

<0.

When , the increase in α from increased information sharing will translate into

shifts the lender's zero-profit iso-curve to the left, implying that the interest rate on loans of size V i decreases, resulting in a Bertrand equilibrium contract that will yield higher profits for all borrowers

formally i as we can see in diagram 03, when  B V , r B V

, r  :

i 2 2

 i 1 i 1

Diagram 03 Sharing information brings profit to borrowers

ii '  

B

i



V , r 

 V , r 

B

i

ii 

V i



L

i



0 '  



L

i



0 

V 2

V 1

r 2 r 1 r i

e) Restricting informal credit markets

Due to the fixed cost of lending, F , and the fact that borrowers can only borrow from the formal financial sector when the official interest rate is lower than r , there exists a group of borrowers whose initial tangible assets are low and who cannot easily profit from borrowing from formal borrowers. By setting (3) equal to (4) and completely differentiating, we immediately get

It is immediately seen that the profit-maximizing debt balance will increase k i , , or

dV *

i 0 . Thus, initially richer borrowers will receive

dk i

larger loan. We define the smallest level of tangible assets

The first borrower's asset that satisfies the lender's feasibility conditions (at the level of information sharing α ) is the first asset of borrower i with k K.​

Now suppose that by introducing a credit bureau, the level of information sharing α increases. The increased level of information sharing will allow the lender to acquire customers who are poorer borrowers at the marginal limit, whose initial wealth coefficient is lower than k . We can see this by substituting k into (10), and noting that since there is

fixed costs, the lender will earn zero profit when lending

the poorest borrowers in the loan portfolio. Take the full differential

part of (10) will give

dk ) p





, or as α increases, the marginal borrower becomes

0

d p k

As a result, increased information sharing leads to better credit ratings for poorer borrowers and a more efficient financial system through lower default rates. Lower default rates reduce the cost of lending, so it becomes more profitable for lenders to make small loans to borrowers with few assets.

This implies that the introduction of credit institutions is likely to provide greater flexibility to both the formal and informal financial systems in lending to marginal poor borrowers who have traditionally been denied credit by the formal financial sector. The effectiveness of credit institutions in reducing default rates and creating more opportunities for low-income borrowers has contributed to the development of credit activities.

Appendix 11 - Details of CIC's response to credit institutions in the first 6 months of 2006

STT

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• Solutions for tourism development in Tien Lang - 10 zt2i3t4l5ee zt2a3gstourism, tourism development zt2a3ge zc2o3n4t5e6n7ts - District People's Committees and authorities of communes with tourist attractions should support, promote, and provide necessary information to people, helping them improve their knowledge about tourism. Raise tourism awareness for local people. * * * Due to limited knowledge and research time, the thesis inevitably has shortcomings. Therefore, I look forward to receiving guidance from teachers, experts as well as your comments to make the thesis more complete. Chapter III Conclusion Through the issues presented in Chapter II, we can come to some conclusions: Based on the strengths of available tourism resources, the types of tourism in Tien Lang that need to be promoted in the coming time are sightseeing and resort tourism, discovery tourism, weekend tourism. To improve the quality and diversify tourism products, Tien Lang district needs to combine with local cultural tourism resources, at the same time combine with surrounding areas, build rich tourism products. The strengths of Tien Lang tourism are eco-tourism and cultural tourism, so developing Tien Lang tourism must always go hand in hand with restoring and preserving types of cultural tourism resources. Some necessary measures to support and improve the efficiency of exploiting tourism resources in Tien Lang are: strengthening the construction of technical facilities and labor force serving tourism, actively promoting and advertising tourism, and expanding forms of capital mobilization for tourism development. CONCLUDE I Conclusion 1. Based on the results achieved within the framework of the thesis's needs, some basic conclusions can be drawn as follows: Tien Lang is a locality with great potential for tourism development. The relatively abundant cultural tourism resources and ecological tourism resources have great appeal to tourists. Based on this potential, Tien Lang can build a unique tourism industry that is competitive enough with other localities within Hai Phong city and neighboring areas. In recent years, the exploitation of the advantages of resources to develop tourism and build tourist routes in Tien Lang has not been commensurate with the available potential. In terms of quantity, many resource objects have not been brought into the purpose of tourism development. In terms of time, the regular service time has not been extended to attract more visitors. Infrastructure and technical facilities are still weak. The labor force is still thin and weak in terms of expertise. Tourism programs and routes have not been organized properly, the exploitation content is still monotonous, so it has not attracted many visitors. Although resources have not been mobilized much for tourism development, they are facing the risk of destruction and degradation. 2. Based on the results of investigation, analysis, synthesis, evaluation and selective absorption of research results of related topics, the thesis has proposed a number of necessary solutions to improve the efficiency of exploiting tourism resources in Tien Lang such as: promoting the restoration and conservation of tourism resources, focusing on investment and key exploitation of ecotourism resources, strengthening the construction of infrastructure and tourism workforce. Expanding forms of capital mobilization. In addition, the thesis has built a number of tourist routes of Hai Phong in which Tien Lang tourism resources play an important role. Exploiting Tien Lang tourism resources for tourism development is currently facing many difficulties. The above measures, if applied synchronously, will likely bring new prospects for the local tourism industry, contributing to making Tien Lang tourism an important economic sector in the district's economic structure. REFERENCES 1. Nhuan Ha, Trinh Minh Hien, Tran Phuong, Hai Phong - Historical and cultural relics, Hai Phong Publishing House, 1993 2. Hai Phong City History Council, Hai Phong Gazetteer, Hai Phong Publishing House, 1990. 3. Hai Phong City History Council, History of Tien Lang District Party Committee, Hai Phong Publishing House, 1990. 4. Hai Phong City History Council, University of Social Sciences and Humanities, VNU, Hai Phong Place Names Encyclopedia, Hai Phong Publishing House. 2001. 5. Law on Cultural Heritage and documents guiding its implementation, National Political Publishing House, Hanoi, 2003. 6. Tran Duc Thanh, Lecture on Tourism Geography, Faculty of Tourism, University of Social Sciences and Humanities, VNU, 2006 7. Hai Phong Center for Social Sciences and Humanities, Some typical cultural heritages of Hai Phong, Hai Phong Publishing House, 2001 8. Nguyen Ngoc Thao (editor-in-chief, Tourism Geography, Hai Phong Publishing House, two volumes (2001-2002) 9. Nguyen Minh Tue and group of authors, Hai Phong Tourism Geography, Ho Chi Minh City Publishing House, 1997. 10. Nguyen Thanh Son, Hai Phong Tourism Territory Organization, Associate Doctoral Thesis in Geological Geography, Hanoi, 1996. 11. Decision No. 2033/QD – UB on detailed planning of Tien Lang town, Hai Phong city until 2020. 12. Department of Culture, Information, Hai Phong Museum, Hai Phong relics - National ranked scenic spot, Hai Phong Publishing House, 2005. 13. Tien Lang District People's Committee, Economic Development Planning - Culture - Society of Tien Lang district to 2010. 14.Website www.HaiPhong.gov.vn APPENDIX 1 List of national ranked monuments STT Name of the monument Number, year of decisiondetermine Location 1 Gam Temple 938 VH/QĐ04/08/1992 Cam Khe Village- Toan Thang commune 2 Doc Hau Temple 9381 VH/QĐ04/08/1992 Doc Hau Village –Toan Thang commune 3 Cuu Doi Communal House 3207 VH/QĐDecember 30, 1991 Zone II of townTien Lang 4 Ha Dai Temple 938 VH/QĐ04/08/1992 Ha Dai Village –Tien Thanh commune APPENDIX II STT Name of the monument Number, year of decision Location 1 Phu Ke Pagoda Temple 178/QD-UBJanuary 28, 2005 Zone 1 - townTien Lang 2 Trung Lang Temple 178/QD-UBJanuary 28, 2005 Zone 4 – townTien Lang 3 Bao Khanh Pagoda 1900/QD-UBAugust 24, 2006 Nam Tu Village -Kien Thiet commune 4 Bach Da Pagoda 1792/QD-UB11/11/2002 Hung Thang Commune 5 Ngoc Dong Temple 177/QD-UBNovember 27, 2005 Tien Thanh Commune 6 Tomb of Minister TSNhu Van Lan 2848/QD-UBSeptember 19, 2003 Nam Tu Village -Kien Thiet commune 7 Canh Son Stone Temple 2160/QD-UBSeptember 19, 2003 Van Doi Commune –Doan Lap 8 Meiji Temple 2259/QD-UBSeptember 19, 2002 Toan Thang Commune 9 Tien Doi Noi Temple 477/QD-UBSeptember 19, 2005 Doan Lap Commune 10 Tu Doi Temple 177/QD-UBJanuary 28, 2005 Doan Lap Commune 11 Duyen Lao Temple 177/QD-UBJanuary 28, 2005 Tien Minh Commune 12 Dinh Xuan Uc Pagoda 177/QD-UBJanuary 28, 2005 Bac Hung Commune 13 Chu Khe Pagoda 177/QD-UBJanuary 28, 2005 Hung Thang Commune 14 Dong Dinh 2848/QD-UBNovember 21, 2002 Vinh Quang Commune 15 President's Memorial HouseTon Duc Thang 177/QD-UBJanuary 28, 2005 NT Quy Cao Ha Dai Temple Ben Vua Temple Tien Lang hot spring div.maincontent .p { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 14pt; margin:0pt; } div.maincontent p { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 14pt; margin:0pt; } div.maincontent .s1 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; font-size: 16pt; } div.maincontent .s2 { color: black; font-family:"Times New Roman", serif; font-style: italic; font-weight: bold; text-decoration: none; font-size: 14pt; } div.maincontent .s3 { color: black; font-family:"Times New Roman", serif; font-style: italic; font-weight: normal; text-decoration: none; font-size: 14pt; } div.maincontent .s4 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; font-size: 14pt; } div.maincontent .s5 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: bold; font-size: 14pt; } div.maincontent .s6 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 14pt; } div.maincontent .s7 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: bold; text-decoration: none; font-size: 14pt; } div.maincontent .s8 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 9pt; vertical-align: 6pt; } div.maincontent .s9 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: bold; text-decoration: none; font-size: 12pt; } div.maincontent .s11 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; tex
• 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). div.maincontent .content_head3 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: bold; text-decoration: none; font-size: 14pt; } div.maincontent .p { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 14pt; margin:0pt; } div.maincontent p { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 14pt; margin:0pt; } div.maincontent .s1 { color: black; font-family:"Courier New", monospace; font-style: normal; font-weight: normal; text-decoration: none; font-size: 14pt; } div.maincontent .s2 { color: black; font-family:"Times New Roman", serif; font-style: italic; font-weight: normal; 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26

Source CIC

Appendix 12

COMPARISON OF PUBLIC AND PRIVATE CREDIT AGENCIES

Public

- The number of members is regulated to ensure contribution.

- Quality is governed by the legal system.

- There is no other choice but to share information (except for special information)

- Add separate approach to third party information

a. Information

Private

- The number of members is unlimited.

- Quality is governed by the legal system.

- There is doubt in sharing information

- Pay attention to expanding third-party information sources to test and increase revenue.

Public

- External sources of information are used for short-term consulting. Management is based on existing internal sources of information.

b. Information sources

Private

- Have a centralized board that reviews shareholders, has approval for the use of external resources in management and consulting

- evaluate internal information sources to serve cultural issues

Public

- Focus directly on using the information

- Plus cost recovery.

c. Credit policies

Private

- Members are encouraged to implement credit control within existing policies.

- Focus on cost

- Historical approach to credit assessment

Public

- Operate according to existing regulations

- Can change regulations quickly to meet requirements.

- Cannot be considered a completely neutral organization.

d. Legal/Regulations

Private

- If there are no legal regulations, private TTTD companies will operate under their own regulations.

- If there are legal requirements, it may require extensive action to create an environment for sharing credit information, for example changing information from negative to positive.

Public

- Can quickly correct regulations if required

- The media is more cautious in transactions.

- Contrarian approach- Not dictated by customer groups but can be influenced by public perception

e. Customer information security

Private

- May be prohibited by law

- Every action is subject to scrutiny by the public and other mass media.

- The use of credit providers may be influenced by public perceptions in an effort to avoid government-related problems.

- Try to act as a trusted third party.

Private

- Will require comprehensive measures to protect against intrusions (both external/internal)

- Contact via B2B, Web or FTS

- Cost effective D/R solution

f. Safety

Public

- Will require comprehensive measures to ensure against intrusion (both external/internal)

- The credit agency will have to use the existing transaction network in addition to B2B, Web or FTS

- Work with existing D/R solutions

CREDIT BROADCAST BRANCH OF SINGAPORE (CBS)

- As a private company, collect information

consumer information and retention of positive information

CASE STUDY

CCRIS (OF MALAYSIA)

- Is a commercial, consumer and information storage company. This company is part of Bank Negara Malaysia (NBMA).

Singapore

- Credit Bureau of Singapore (CBS)

- Commercial activities

- 25% of shares are owned by the Association of Banks of Singapore (ABS)

- Monetary Authority Gazette (MAS) Request

OWN

Malaysia

- 100% owned and operated by Bank Negara Malaysia (BNM)

- Control all operating licenses for both domestic and foreign banks