Solutions to enhance capital mobilization at Lien Viet Post Joint Stock Commercial Bank - Hai Phong Branch

However, in the immediate future, the State Bank needs to gradually adjust and eliminate the difference between domestic and foreign interest rates so that people do not convert all their domestic currency into foreign currency, leading to pressure on the exchange rate.

- Adjusting exchange rates appropriately when there are fluctuations. Stable exchange rates are the monetary policy goal of the State Bank and are an important condition for maximizing domestic and foreign capital mobilization. When exchange rates fluctuate, it affects both mobilized capital and capital management of banks. Currently, the USD/VND exchange rate does not reflect the true purchasing power of the domestic currency. VND is overvalued, causing difficulties for export activities.

- The State Bank needs to have a policy to promote the Deposit Insurance Company to promote its role. Established with the goal of protecting the interests of depositors as well as commercial banks in case of risks, the deposit insurance company was established to increase the confidence of depositors, in order to mobilize the maximum amount of idle money in the economy, especially deposits of residents. In Vietnam, on August 19, 2000, the Ho Chi Minh City Deposit Insurance Organization was established and applied to the entire system of commercial banks in Vietnam. The Deposit Insurance Company is a state-owned financial institution operating not for profit. The State Bank needs to have a policy to support the insurance company, such as requiring commercial banks to send their financial reports and annual business performance reports so that the insurance company can better understand the bank's operations and have timely relief measures when the bank encounters difficulties in its business operations. The State Bank supervises the insurance premium payment activities of banks and other credit institutions that conduct deposit-taking operations.

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- Expanding non-cash payments because for customers this is a simple, safe, economical, and convenient payment method for exchange. Some forms of non-cash payments commonly used by banks are: Checks, payment cards, payment orders, collection orders, letters of credit, etc. Non-cash payments create capital for the commercial banking system. When customers have not used the money in their payment accounts, it will create an amount of idle money that banks can use for lending, generating income for the bank. Therefore, to strengthen their capital mobilization, banks need to pay more attention to providing utilities to customers for this type of service.

3.3.3. For Lien Viet Post Joint Stock Commercial Bank - Hai Phong Branch

- Has a flexible competitive interest rate mechanism, reasonable service fees: Interest rate is the key factor.

important factor that helps banks attract customers to deposit money. Because most people with money want to deposit money in banks, first they will compare the interest rates offered by banks to see which one is better, then the issue of deposit safety for them as well as the convenient services they enjoy. If customers evaluate banks with the same safety coefficient and convenient services, they will choose the bank that pays them higher interest rates. They can easily learn and grasp this when the mass media is becoming more and more popular and widespread in our country (telephone, newspapers, economic information on television, etc.).

- Banks must regularly monitor and collect statistics on fluctuations in interest rates and service fees in the same area of operation to make timely adjustments to suit the market interest rate level and the bank's own characteristics. Banks also need to pay attention to treasury bill interest rates because in reality, the treasury often issues treasury bills with higher interest rates than commercial banks' mobilization interest rates because the treasury has the advantage of not being controlled by ceiling interest rates.

- Banks need to diversify deposit terms with different interest rates. People's idle money and savings are very diverse. If banks only mobilize with terms of 3-6-9-12 months... then the idle time of money does not match the mobilization terms of the bank, it will not encourage customers to come to the bank to transact. For example, a person has idle money for 2 months but the bank only mobilizes for a minimum term of 3 months, so customers cannot make term deposits. Although customers can choose to deposit without a term, because the non-term interest rate is lower than the term interest rate, it creates a disadvantage for customers.

However, diversifying deposit terms will make the bank's transactions, management, and record keeping more complicated, but not impossible. Previously, there were banks that accepted deposits for all terms from 1 to 12 months, and now there are banks that accept customer deposits for any term over 12 months. Diversify deposit terms with different interest rates according to the principle that the longer the term, the higher the mobilization interest rate.

- Diversify payment methods. Customers deposit money in banks for many different purposes, some for safety, some mainly to get monthly interest such as retired officials, students... some have surplus money.

deposit money so that the capital can grow and develop. Therefore, they choose to calculate interest at the end of the period, with a higher interest rate than withdrawing interest in advance and withdrawing interest monthly. Currently, most banks are applying two forms of paying interest in advance and paying interest at the end of the period according to the banks to simplify capital mobilization, stabilize operating capital, on that basis, banks can easily balance capital mobilization and use plans. However, it must be seen that the current goal of banks is to take advantage of, attract and exploit all idle capital sources in society, even in small amounts. Therefore, in the coming time, it is necessary to maintain the form of paying interest monthly as has been done before to satisfy many purposes of depositors and thereby attract more and more customers to the bank.

- Encouragement by material benefits: When customers deposit money, in addition to comparing which place has higher interest rates, they also care about the material benefits they receive. Especially in the situation where the State Bank is applying interest rate ceilings, the material benefits customers receive are also in the form of promotions and prizes.

- Periodically advertise and publicly list all interest rates and deposit terms and conditions. Advertising will help customers to notice the bank's image so that they can compare and choose. On the other hand, not everyone can grasp all the procedures, deposit terms and conditions as well as the incentive and preferential policies that they enjoy. Especially for customers with low education level and for customers who come to deposit money at the bank for the first time. A full list of public utilities and easy-to-understand will create a comfortable and simple feeling for customers in the deposit procedure, and will help customers find an attractive opportunity to deposit money at the bank that other banks do not have.

A spacious headquarters, polite communication style, and enthusiastic customer guidance are also decisive factors for the success of a bank's business. In today's competitive environment, any bank that can handle this aspect well will have an advantage in attracting customers to do business with the bank.

CONCLUDE

Economic growth is always the top concern of countries and it comes with the need for capital. One of the most important and effective capital mobilization channels is through the system of commercial banks. For our country, capital mobilized by commercial banks is an important factor in the process of economic restructuring, especially in the context of our country having an underdeveloped economy and science and technology still backward compared to the world, this source of capital is even more important. The goal of economic growth must be associated with building an effectively operating financial market, becoming a powerful tool for economic innovation, through the function of intermediary circulation and capital mobilization for development investment. As a key factor in the financial market, commercial banks must use all means to promote the mobilization of idle capital in the economy to serve development investment, especially medium and long-term capital, because this is the capital source used for long-term investment and has a large capital circulation capacity.

By studying the topic of enhancing capital mobilization of commercial banks and specifically Lien Viet Post Joint Stock Commercial Bank - Hai Phong branch, I have realized the important role of capital mobilization of commercial banks for the economy. The topic has raised the forms of capital mobilization and the factors affecting this work. From the theory, the topic analyzes the current situation of capital mobilization of the branch, the results achieved, as well as the shortcomings. From there, some solutions and recommendations are proposed to enhance capital mobilization for banks.

Above is my entire thesis, due to limited knowledge and practical level, the thesis inevitably has shortcomings, I really hope to receive comments from teachers. I would like to sincerely thank Ms. Ths. Nguyen Thi Thanh for her dedicated guidance in completing this thesis./

LIST OF REFERENCES

1. Business performance report of Lien Viet Post Joint Stock Commercial Bank - Hai Phong Branch.

2. Balancing the business capital of Lien Viet Post Joint Stock Commercial Bank - Hai Phong Branch.

3. Business guidance documents of Lien Viet Post Joint Stock Commercial Bank - Hai Phong Branch.

4. Monetary Theory - Banking - Statistical Publishing House 2008

5. Banking Magazine 2010, 2011.

6. Finance Magazine 2010, 2011

7. Banking marketing textbook - Academy of Finance - Statistical Publishing House 2009

8. Banking accounting textbook - Finance Academy - Statistical Publishing House 2009

9. Banking credit textbook - Academy of Finance - Statistical Publishing House 2008

Solutions to enhance capital mobilization at Lien Viet Post Joint Stock Commercial Bank - Hai Phong Branch - 9

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