Some Factors Affecting the Quality of Short-Term Loan Services for Business Customers of Commercial Banks

(1) Group of indicators reflecting scale

- Indicators on outstanding short-term loans for SMEs

Outstanding short-term loans to SMEs are the amount of money that the bank is currently lending to the business at a given time, usually considered at the end of the period. This is an absolute number that shows the scale of capital loans to businesses at a given time. In addition, people also consider the ratio of outstanding short-term loans to SMEs over the total outstanding loans of the bank or the growth rate of outstanding short-term loans to SME customers over the years, expressed as a relative number.

- The ratio of outstanding short-term loans to SMEs to the total outstanding loans of the bank is determined as follows:

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• Qos Assurance Methods for Multimedia Communications zt2i3t4l5ee zt2a3gs zt2a3ge zc2o3n4t5e6n7ts low. The EF PHB requires a sufficiently large number of output ports to provide low delay, low loss, and low jitter. EF PHBs can be implemented if the output port's bandwidth is sufficiently large, combined with small buffer sizes and other network resources dedicated to EF packets, to allow the router's service rate for EF packets on an output port to exceed the arrival rate λ of packets at that port. This means that packets with PHB EF are considered with a pre-allocated amount of output bandwidth and a priority that ensures minimum loss, minimum delay and minimum jitter before being put into operation. PHB EF is suitable for channel simulation, leased line simulation, and real-time services such as voice, video without compromising on high loss, delay and jitter values. Figure 2.10 Example of EF installation Figure 2.10 shows an example of an EF PHB implementation. This is a simple priority queue scheduling technique. At the edges of the DS domain, EF packet traffic is prioritized according to the values ​​agreed upon by the SLA. The EF queue in the figure needs to output packets at a rate higher than the packet arrival rate λ. To provide an EF PHB over an end-to-end DS domain, bandwidth at the output ports of the core routers needs to be allocated in advance to ensure the requirement μ > λ. This can be done by a pre-configured provisioning process. In the figure, EF packets are placed in the priority queue (the upper queue). With such a length, the queue can operate with μ > λ. Since EF was primarily used for real-time services such as voice and video, and since real-time services use UDP instead of TCP, RED is generally not suitable for EF queues because applications using UDP will not respond to random packet drop and RED will strip unnecessary packets. 2.2.4.2 Assured Forwarding (AF) PHB PHB AF is defined by RFC 2597. The purpose of PHB AF is to deliver packets reliably and therefore delay and jitter are considered less important than packet loss. PHB AF is suitable for non-real-time services such as applications using TCP. PHB AF first defines four classes: AF1, AF2, AF3, AF4. For each of these AF classes, packets are then classified into three subclasses with three distinct priority levels. Table 2.8 shows the four AF classes and 12 AF subclasses and the DSCP values ​​for the 12 AF subclasses defined by RFC 2597. RFC 2597 also allows for more than three separate priority levels to be added for internal use. However, these separate priority levels will only have internal significance. PHB Class PHB Subclass Package type DSCP AF4 AF41 Short 100010 AF42 Medium 100100 AF43 High 100110 AF3 AF31 Short 011010 AF32 Medium 011100 AF33 High 011110 AF2 AF21 Short 010010 AF22 Medium 010100 AF23 High 010110 AF1 AF11 Short 001010 AF12 Medium 001100 AF13 High 001110 Table 2.8 AF DSCPs The AF PHB ensures that packets are forwarded with a high probability of delivery to the destination within the bounds of the rate agreed upon in an SLA. If AF traffic at an ingress port exceeds the pre-priority rate, which is considered non-compliant or “out of profile”, the excess packets will not be delivered to the destination with the same probability as the packets belonging to the defined traffic or “in profile” packets. When there is network congestion, the out of profile packets are dropped before the in profile packets are dropped. When service levels are defined using AF classes, different quantity and quality between AF classes can be realized by allocating different amounts of bandwidth and buffer space to the four AF classes. Unlike EF, most AF traffic is non-real-time traffic using TCP, and the RED queue management strategy is an AQM (Adaptive Queue Management) strategy suitable for use in AF PHBs. The four AF PHB layers can be implemented as four separate queues. The output port bandwidth is divided into four AF queues. For each AF queue, packets are marked with three “colors” corresponding to three separate priority levels. In addition to the 32 DSCP 1 groups defined in Table 2.8, 21 DSCPs have been standardized as follows: one for PHB EF, 12 for PHB AF, and 8 for CSCP. There are 11 DSCP 1 groups still available for other standards. 2.2.5.Example of Differentiated Services We will look at an example of the Differentiated Service model and mechanism of operation. The architecture of Differentiated Service consists of two basic sets of functions: Edge functions: include packet classification and traffic conditioning. At the inbound edge of the network, incoming packets are marked. In particular, the DS field in the packet header is set to a certain value. For example, in Figure 2.12, packets sent from H1 to H3 are marked at R1, while packets from H2 to H4 are marked at R2. The labels on the received packets identify the service class to which they belong. Different traffic classes receive different services in the core network. The RFC definition uses the term behavior aggregate rather than the term traffic class. After being marked, a packet can be forwarded immediately into the network, delayed for a period of time before being forwarded, or dropped. We will see that there are many factors that affect how a packet is marked, and whether it is forwarded immediately, delayed, or dropped. Figure 2.12 DiffServ Example Core functionality: When a DS-marked packet arrives at a Diffservcapable router, the packet is forwarded to the next router based on Per-hop behavior is associated with packet classes. Per-hop behavior affects router buffers and the bandwidth shared between competing classes. An important principle of the Differentiated Service architecture is that a router's per-hop behavior is based only on the packet's marking or the class to which it belongs. Therefore, if packets sent from H1 to H3 as shown in the figure receive the same marking as packets from H2 to H4, then the network routers treat the packets exactly the same, regardless of whether the packet originated from H1 or H2. For example, R3 does not distinguish between packets from h1 and H2 when forwarding packets to R4. Therefore, the Differentiated Service architecture avoids the need to maintain router state about separate source-destination pairs, which is important for network scalability. Chapter Conclusion Chapter 2 has presented and clarified two main models of deploying and installing quality of service in IP networks. While the traditional best-effort model has many disadvantages, later models such as IntServ and DiffServ have partly solved the problems that best-effort could not solve. IntServ follows the direction of ensuring quality of service for each separate flow, it is built similar to the circuit switching model with the use of the RSVP resource reservation protocol. IntSer is suitable for services that require fixed bandwidth that is not shared such as VoIP services, multicast TV services. However, IntSer has disadvantages such as using a lot of network resources, low scalability and lack of flexibility. DiffServ was born with the idea of ​​solving the disadvantages of the IntServ model. DiffServ follows the direction of ensuring quality based on the principle of hop-by-hop behavior based on the priority of marked packets. The policy for different types of traffic is decided by the administrator and can be changed according to reality, so it is very flexible. DiffServ makes better use of network resources, avoiding idle bandwidth and processing capacity on routers. In addition, the DifServ model can be deployed on many independent domains, so the ability to expand the network becomes easy. Chapter 3: METHODS TO ENSURE QoS FOR MULTIMEDIA COMMUNICATIONS In packet-switched networks, different packet flows often have to share the transmission medium all the way to the destination station. To ensure the fair and efficient allocation of bandwidth to flows, appropriate serving mechanisms are required at network nodes, especially at gateways or routers, where many different data flows often pass through. The scheduler is responsible for serving packets of the selected flow and deciding which packet will be served next. Here, a flow is understood as a set of packets belonging to the same priority class, or originating from the same source, or having the same source and destination addresses, etc. In normal state when there is no congestion, packets will be sent as soon as they are delivered. In case of congestion, if QoS assurance methods are not applied, prolonged congestion can cause packet drops, affecting service quality. In some cases, congestion is prolonged and widespread in the network, which can easily lead to the network being "frozen", or many packets being dropped, seriously affecting service quality. Therefore, in this chapter, in sections 3.2 and 3.3, we introduce some typical network traffic load monitoring techniques to predict and prevent congestion before it occurs through the measure of dropping (removing) packets early when there are signs of impending congestion. 3.1. DropTail method DropTail is a simple, traditional queue management method based on FIFO mechanism. All incoming packets are placed in the queue, when the queue is full, the later packets are dropped. Due to its simplicity and ease of implementation, DropTail has been used for many years on Internet router systems. However, this algorithm has the following disadvantages: − Cannot avoid the phenomenon of “Lock out”: Occurs when 1 or several traffic streams monopolize the queue, making packets of other connections unable to pass through the router. This phenomenon greatly affects reliable transmission protocols such as TCP. According to the anti-congestion algorithm, when locked out, the TCP connection stream will reduce the window size and reduce the packet transmission speed exponentially. − Can cause Global Synchronization: This is the result of a severe “Lock out” phenomenon. Some neighboring routers have their queues monopolized by a number of connections, causing a series of other TCP connections to be unable to pass through and simultaneously reducing the transmission speed. After those monopolized connections are temporarily suspended, Once the queue is cleared, it takes a considerable amount of time for TCP connections to return to their original speed. − Full Queue phenomenon: Data transmitted on the Internet often has an explosion, packets arriving at the router are often in clusters rather than in turn. Therefore, the operating mechanism of DropTail makes the queue easily full for a long period of time, leading to the average delay time of large packets. To avoid this phenomenon, with DropTail, the only way is to increase the router's buffer, this method is very expensive and ineffective. − No QoS guarantee: With the DropTail mechanism, there is no way to prioritize important packets to be transmitted through the router earlier when all are in the queue. Meanwhile, with multimedia communication, ensuring connection and stable speed is extremely important and the DropTail algorithm cannot satisfy. The problem of choosing the buffer size of the routers in the network is to “absorb” short bursts of traffic without causing too much queuing delay. This is necessary in bursty data transmission. The queue size determines the size of the packet bursts (traffic spikes) that we want to be able to transmit without being dropped at the routers. In IP-based application networks, packet dropping is an important mechanism for indirectly reporting congestion to end stations. A solution that prevents router queues from filling up while reducing the packet drop rate is called dynamic queue management. 3.2. Random elimination method – RED 3.2.1 Overview RED (Random Early Detection of congestion; Random Early Drop) is one of the first AQM algorithms proposed in 1993 by Sally Floyd and Van Jacobson, two scientists at the Lawrence Berkeley Laboratory of the University of California, USA. Due to its outstanding advantages compared to previous queue management algorithms, RED has been widely installed and deployed on the Internet. The most fundamental point of their work is that the most effective place to detect congestion and react to it is at the gateway or router. Source entities (senders) can also do this by estimating end-to-end delay, throughput variability, or the rate of packet retransmissions due to drop. However, the sender and receiver view of a particular connection cannot tell which gateways on the network are congested, and cannot distinguish between propagation delay and queuing delay. Only the gateway has a true view of the state of the queue, the link share of the connections passing through it at any given time, and the quality of service requirements of the traffic flows. The RED gateway monitors the average queue length, which detects early signs of impending congestion (average queue length exceeding a predetermined threshold) and reacts appropriately in one of two ways: − Drop incoming packets with a certain probability, to indirectly inform the source of congestion, the source needs to reduce the transmission rate to keep the queue from filling up, maintaining the ability to absorb incoming traffic spikes. − Mark “congestion” with a certain probability in the ECN field in the header of TCP packets to notify the source (the receiving entity will copy this bit into the acknowledgement packet). Figure 3. 1 RED algorithm The main goal of RED is to avoid congestion by keeping the average queue size within a sufficiently small and stable region, which also means keeping the queuing delay sufficiently small and stable. Achieving this goal also helps: avoid global synchronization, not resist bursty traffic flows (i.e. flows with low average throughput but high volatility), and maintain an upper bound on the average queue size even in the absence of cooperation from transport layer protocols. To achieve the above goals, RED gateways must do the following: − The first is to detect congestion early and react appropriately to keep the average queue size small enough to keep the network operating in the low latency, high throughput region, while still allowing the queue size to fluctuate within a certain range to absorb short-term fluctuations. As discussed above, the gateway is the most appropriate place to detect congestion and is also the most appropriate place to decide which specific connection to report congestion to. − The second thing is to notify the source of congestion. This is done by marking and notifying the source to reduce traffic. Normally the RED gateway will randomly drop packets. However, if congestion If congestion is detected before the queue is full, it should be combined with packet marking to signal congestion. The RED gateway has two options: drop or mark; where marking is done by marking the ECN field of the packet with a certain probability, to signal the source to reduce the traffic entering the network. − An important goal that RED gateways need to achieve is to avoid global synchronization and not to resist traffic flows that have a sudden characteristic. Global synchronization occurs when all connections simultaneously reduce their transmission window size, leading to a severe drop in throughput at the same time. On the other hand, Drop Tail or Random Drop strategies are very sensitive to sudden flows; that is, the gateway queue will often overflow when packets from these flows arrive. To avoid these two phenomena, gateways can use special algorithms to detect congestion and decide which connections will be notified of congestion at the gateway. The RED gateway randomly selects incoming packets to mark; with this method, the probability of marking a packet from a particular connection is proportional to the connection's shared bandwidth at the gateway. − Another goal is to control the average queue size even without cooperation from the source entities. This can be done by dropping packets when the average size exceeds an upper threshold (instead of marking it). This approach is necessary in cases where most connections have transmission times that are less than the round-trip time, or where the source entities are not able to reduce traffic in response to marking or dropping packets (such as UDP flows). 3.2.2 Algorithm This section describes the algorithm for RED gateways. RED gateways calculate the average queue size using a low-pass filter. This average queue size is compared with two thresholds: minth and maxth. When the average queue size is less than the lower threshold, no incoming packets are marked or dropped; when the average queue size is greater than the upper threshold, all incoming packets are dropped. When the average queue size is between minth and maxth, each incoming packet is marked or dropped with a probability pa, where pa is a function of the average queue size avg; the probability of marking or dropping a packet for a particular connection is proportional to the bandwidth share of that connection at the gateway. The general algorithm for a RED gateway is described as follows: [5] For each packet arrival Caculate the average queue size avg If minth ≤ avg < maxth div.maincontent .s1 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 15pt; } div.maincontent .s2 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: bold; text-decoration: none; font-size: 15pt; } 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 .s3 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: bold; text-decoration: none; font-size: 14pt; } div.maincontent .s4 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 14pt; } div.maincontent .s5 { color: black; font-family:"Times New Roman", serif; font-style: italic; font-weight: normal; text-decoration: none; font-size: 14pt; } div.maincontent .s6 { color: black; font-family:"Times New Roman", serif; font-style: italic; font-weight: bold; text-decoration: none; font-size: 14pt; } div.maincontent .s7 { color: black; font-family:Wingdings; font-style: normal; font-weight: normal; text-decoration: none; font-size: 14pt; } div.maincontent .s8 { color: black; font-family:Arial, sans-serif; font-style: italic; font-weight: bold; text-decoration: none; font-size: 15pt; } div.maincontent .s9 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: bold; text-decoration: none; font-size: 14pt; } div.maincontent .s10 { 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 .s11 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 13pt; } div.maincontent .s12 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 10pt; } div.maincontent .s13 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-d
• Discussion on Causes, Limitations and Existing Problems of Short-Term Loan Service Quality Khdn
• Understanding the Factors Affecting the Increase in Short-Term Lending Rate from Retail Customers Through Questionnaire and Model Running.
• Indicators for Assessing the Quality of Short-Term Credit Activities of Banks
• Improving the quality of short-term loans for small and medium enterprises - 2

The higher this ratio is, the more it proves the role of SME lending and the Bank's development orientation in increasing credit balance for this group, but it could also be due to the increase in overdue debt from this lending activity.

- The growth rate of outstanding short-term loans to SMEs is determined as follows:

after:

This indicator reflects the growth rate of lending activities for SMEs this year compared to last year. A growth rate of outstanding loans >100% indicates that the size of outstanding loans of SMEs has increased, and conversely, if the growth rate <100%, the size of outstanding loans of SMEs has narrowed.

- Indicators on outstanding short-term loans with collateral for SMEs

Collateral is considered as a form of loan security, a commitment and a second source of debt repayment for the enterprise when risks occur, so one of the requirements when granting credit to customers is collateral, including forms such as pledge, mortgage, deposit and third-party guarantee.

The outstanding short-term loan ratio of SME capital with secured assets is determined as follows:

The ratio of outstanding loans with collateral reflects the safety of the loan. It also reflects the level of compensation for losses for the bank when risks occur, the enterprise cannot pay debt and interest on time. The higher this ratio, the lower the credit risk, the better the lending efficiency.

(2) Group of indicators reflecting risks in lending activities

* Overdue debt indicators for SMEs

Overdue debt from SME lending activities is a debt in which a part or all of the principal and/or interest is overdue and has not been repaid by the enterprise within the agreed time stated in the credit contract. In addition to the absolute value of overdue debt, people also calculate the ratio of overdue debt from lending activities to the total outstanding debt of SME or the ratio of overdue debt from lending activities of SME to the total value of overdue debt of the bank.

- The ratio of overdue debt from SME lending activities to total outstanding debt of SME is determined as follows:

- The ratio of overdue debt from SME lending activities to the total overdue debt of the bank is determined as follows:

According to the classification of overdue debt, overdue debt is in 5 debt groups (from Group 1 to Group 5). Enterprises that do not pay debts on time are related to liquidity and liquidity risk, causing the Bank to increase costs because it has to find new sources to pay deposits and lend according to the contract. Thus, the overdue debt index is an important index to evaluate the lending efficiency of the bank, it shows the risks

when lending that banks may encounter. Looking at the overdue debt ratio can partly evaluate the lending efficiency of the bank. If this indicator is high, the bank will be assessed as having low lending efficiency and vice versa.

* Indicators on bad debt from SME lending activities

Circular No. 02/2013/TT-NHNN of the State Bank stipulates that bad debt (NPL) is debt in groups 3, 4 and 5 and the bad debt ratio is the ratio between bad debt and total debt from groups 1 to 5. Thus, bad debt from lending activities of Vietnamese SMEs is the debt of Vietnamese SMEs classified by banks into groups 3, 4 and 5. There are a number of reasons leading to this situation such as commercial banks not performing periodic credit ratings or businesses that have reduced debt repayment capacity, are forced to restructure debt repayment terms or go bankrupt, and are no longer able to repay bank loans. The total value of bad debt or the ratio of bad debt to total outstanding debt of Vietnamese SMEs both reflect the ability to recover loans is low, meaning that the quality of loans for Vietnamese SMEs is not guaranteed. To improve the efficiency of lending to Vietnamese SMEs, banks must use all measures to minimize this value. However, when conducting business activities, risks are inevitable, so banks can accept a certain ratio of bad debt to total outstanding short-term loans. According to current regulations of the State Bank, the maximum bad debt ratio of credit institutions is 3%.

* Indicators on risk provisioning for SMEs

Circular No. 02/2013/TT-NHNN and Circular No. 09/2014/TT-NHNN stipulate provisions including general provisions and specific provisions.

The higher the risk reserve fund ratio of a bank or the larger the proportion of the risk reserve fund in the total outstanding debt of the bank, the lower the credit quality of the bank because the specific reserve ratio is only calculated based on outstanding debt from group 2 to group 5. The higher the debt group, the higher the provision ratio. The higher the risk reserve fund of a bank, the higher the operating cost of this bank, reducing the bank's ability to generate profits from reserve activities.

(3) Group of indicators reflecting income from lending activities

* Interest accrual indicator for SME loans

The bank's expected future interest income from lending to SME customers, which has not yet been collected, is recorded in the bank's income statement as an official amount. Expected interest income is only calculated on group 1 debt.

High accrued interest is a sign of good growth in income for short-term loan balances for customers, however, in some cases if short-term loan balances do not grow, while accrued interest is high, it is a sign of credit problems, the borrowing business cannot fully pay the interest due.

* Income indicators from SME lending activities

- Net Investment Income (NII) is an index used to determine the difference between interest income and expenses (in total value). This value includes net interest income from lending activities (NII lending) and net interest income from capital mobilization activities (NII mobilization).

For branches, the value of NII for SME lending is the difference between income from SME lending activities and the cost of purchasing capital from the Head Office to carry out the branch's lending activities.

1.3. Some factors affecting the quality of short-term lending services for corporate customers of commercial banks

1.3.1. Objective factors

- Economic environment

The stability or instability of the economic situation and economic policies of each country always has a direct impact on the business activities and business performance of enterprises, affecting the credit activities of commercial banks. A stable economy will be a favorable condition for the development of the business environment, the increased consumption demand of the population is a good opportunity for the organization of production and business activities of enterprises and gain high profits, enterprises have the need to invest in expanding production and business, so the demand for loans of enterprises also increases, creating conditions for commercial banks to expand credit activities for enterprises, thereby contributing to the overall success of the bank.

On the contrary, when the economy falls into a period of stagnation and recession, leading to a decrease in purchasing power, stagnant production and business, a narrowing of production scale and a sharp decrease in investment demand, causing financial difficulties for businesses and possible losses, leading to difficulties in repaying debts to banks as well as the ability of commercial banks to expand their operations, thereby affecting the credit quality and business performance of banks.

- Political and legal environment

Banking is one of the industries that is closely monitored by law and authorities. Banking activities are often strictly regulated by legal regulations. The legal environment will bring new opportunities and new challenges to banks, such as the removal of restrictions on domestic currency deposits, which will pave the way for foreign banks to develop deposit mobilization products and domestic currency lending products. The relaxation of legal regulations can also expose banks to new competitive risks, such as some changes in banking laws allowing the establishment of foreign banks, which will put domestic banks in a position of increasingly fierce competition.

The more stable the political and legal environment is and the more suitable policies are available, the higher the quality of lending services for business customers will be and vice versa.

Thus, the legal environment creates a binding legal basis and impacts the formation, existence and development of each bank. Therefore, managers need to have a firm grasp of the law to conduct banking activities in accordance with the law, and more importantly, they need to discover what the law does not prohibit in order to make accurate and appropriate decisions to improve banking business efficiency.

- Competitive environment

It can be said that this is a factor that strongly affects the credit quality in particular and the general business activities of commercial banks. That impact occurs in two directions:

Firstly, to gain competitive advantage, banks must always pay attention to investing in good equipment, increasing qualified staff, diversifying products to ensure competitiveness, building reputation and maintaining the bank's strengths. This direction of impact has created conditions to improve credit quality.

Second, under the pressure of competition, banks may ignore some credit conditions, but this will increase risks, which may affect credit quality.

1.3.2. Subjective factors

The group of subjective factors affecting the quality of lending services is influenced by factors within the bank itself, including:

* Factors related to the business

- Capital mobilization situation

This is also one of the factors affecting credit quality. Banks can only finance the economy in general and corporate customers in particular when they have sufficient capital to carry out this business, as well as ensure other business activities. Short-term mobilized capital is the main source for short-term lending, medium and long-term mobilized capital is the main source for medium and long-term lending. The larger the mobilized capital, the more the commercial bank can lend to the economy. If a bank does not have a suitable maturity between mobilized capital and outstanding loans and does not anticipate and prepare appropriate and timely compensation sources, liquidity risks will easily occur. Abundant capital also creates conditions for banks to improve their physical infrastructure to better support the activities of commercial banks.

- Credit policy and credit granting process

Credit activities are important activities and have an impact on most of the policy mechanisms of commercial banks. This activity is carried out according to a clear policy, which has been built and perfected over many years. Accordingly, credit policies create general unity and enhance specialization for credit activities.

Credit policies include customer policies, loan size and limit policies, interest rate and credit fee policies, loan guarantees, etc. Before each business period, commercial banks often provide guidance for all activities, including credit activities, clearly defining targets for each customer segment, such as corporate customers, retail customers, etc. If the bank determines to expand short-term credit to corporate customers, the short-term credit policy for corporate customers will be more relaxed. At that time, the conditions for loan applications and collateral are also more easily accepted, and corporate customers will have more favorable access to short-term loans from banks. On the contrary, if the bank determines to limit lending to certain areas of corporate customers to focus on growth in other customer segments or during the period when it is necessary to strictly control debt quality in this segment, it will make it difficult for corporate customers in restricted areas to borrow capital. So the most important and decisive factor affecting credit activities for corporate customers is the credit orientation and lending goodwill of commercial banks, and that is most clearly shown in the guiding documents on credit policies and credit orientation of commercial banks.

Regulations and credit granting procedures are a collection of basic contents, operations, and steps in the lending and debt collection process to ensure the safety of loan capital. It includes steps starting from finding customers, assessing and deciding on credit granting, disbursing loan capital, the process of managing, checking and supervising the loan capital until all debts are fully recovered.

A scientific and clear credit granting process helps improve the efficiency of credit operations. Simple and clear loan procedures help attract more customers, thereby expanding the scale of lending. Moreover, simple and clear procedures make loan management easier and improve the efficiency of lending operations.

- Quality of human resources

The quality of the bank credit staff is the decisive factor in the success or failure of the bank's business activities in general and in credit activities in particular. The reason for this is because the customer relations staff - the

directly involved in all stages of the credit granting process, from the first step to the last. In addition, the quality of the management team is also very important, these are the people who give direction to business activities and are the ones who make the final decisions for the implementation of business activities.

The quality of human resources here is not only a matter of professional expertise, working style, sense of responsibility, labor discipline but also includes the conscience and professional ethics of the bank staff. Especially in the field of bank lending, there are always material temptations, so it requires credit officers to have a strong determination. It can be said that people are the decisive factor in the success or failure of credit management activities of banks, so the selection of customer relations officers must be carried out carefully, ensuring both virtue and talent, promoting the strengths of each officer in contributing to the growth and development of commercial banks, at the same time preventing violations in the process of implementing credit activities, in order to contribute to improving the efficiency of credit activities of banks.

- Facilities conditions

The quality of the facilities is also very important to support credit appraisal and management. Facilities include machinery and equipment systems, working facilities, and management system programs. Commercial banks need to equip modern machinery and equipment systems, fully meeting the capacity of machinery and equipment to be able to smoothly operate software and management systems, to effectively support business activities. An effective management application system will ensure the timely and complete provision of business information data to serve the purpose of making decisions accurately, promptly and effectively.

- Credit information

Credit information is very important for credit granting activities. Credit information is the basis and basic factor for appraisal work in order to make decisions.