Index
Preface
1
Maybe you are interested!
-
Solutions to promote export credit financing activities at the Bank for Foreign Trade of Vietnam - 2 -
Perfecting credit activities of commercial banks to promote economic restructuring in the Southeast region towards industrialization and modernization - 8 -
Current situation and measures to promote online sales activities in the tourism business of Binh Minh Vietnam Tourism Company Limited - 10 -
Testing the Necessity of Management Measures for Gdhn Activities in the Direction of Streaming for Post-Secondary School Students at the Continuing Education Center - Hndn Bac Kan Province -
Perfecting credit activities of commercial banks to promote economic restructuring in the Southeast region towards industrialization and modernization - 15
Chapter I: Some general issues on credit activities of Finance Companies2 1.1. Overview of Finance Companies
2
1.1.1. Formation and development of Finance Company 2
a. Concept 2
b. Operating characteristics of Finance Company 3
c. The necessity of forming and developing Finance Company 4
1.1.2. Basic differences between Finance Company and Commercial Bank 5
1.1.3. Types of Finance companies 8
1.1.4 The Role of Finance Company 10
1.2. Credit activities of Finance Company
11
1.2.1. Concept and characteristics of credit activities in finance companies 11
a. Concept of credit activities 11
b. Specific characteristics of credit activities at Finance Company 12
1.2.2. Credit classification 13
a. Credit term 14
b. Credit objects 14
b. Purpose of capital use 15
d. Credit rating 15
e. Refund method 16
1.2.3. The role of credit activities in today's economy 16
1.3. Lessons learned from credit activities in financial companies in the world and in Vietnam
18
1.3.1. In the US 18
1.3.2 In France 19
1.3.3. In some countries in the 20 region
a. In Singapore 20
b. In Malaysia 20
c. In Indonesia 21
d. In Thailand 22
e. Lessons learned for Vietnam 22
Chapter II: Survey of credit activities at Postal Finance Company
24
2.1. Introduction to Postal Finance Company
24
2.1.1. The formation and development process of Postal Finance Company 25
2.1.2. Functional characteristics, objectives and operations of Postal Finance Company 27
2.1.2.1. Function 27
2.1.2.2. Task 28
2.1.2.3. Company Activities 28
a. Capital mobilization activities 28
b. Credit activities 29
2.1.2.4. Conclusion 31
2.1.3. Organizational structure of Company 32
2.1.3.1. Organizational principles and operating mechanism 32
2.1.3.2. Organizational structure 33
2.1.3.3. Functions and tasks of departments 34
2.2. Production and business activities and credit activities at Postal Finance Company
38
2.2.1. Business performance of Postal Finance Company 38
2.2.2. Survey on the current status of credit activities at Postal Finance Company 39
2.2.2.1. Credit performance situation 39
2.2.2.2. Credit performance quality at Postal Finance Company 43
a. Income from credit activities 43
b. Overdue debt ratio 44
c. Credit cycle 46
d. Capital efficiency 47
2.2.3. Evaluation of Credit Activities at Postal Finance Company 48
2.2.3.1. Advantages 48
2.2.3.2. Disadvantages 48
2.2.3.3. Cause 56
a. Objective reasons 56
b. Subjective causes 57
Chapter III: Some measures to promote credit activities at the Postal Finance Company
59
3.1. The company's development orientation in the coming years
59
3.1.1. Development trends of the economy 59
3.1.2. Development orientation and goals of Postal Finance Company until 2015 59
3.2. Measures to promote credit activities at the Postal Finance Company. 61 3.2.1. Improve financial capacity, actively diversify capital mobilization activities to create credit sources 61
3.2.1.1. Increase equity capital 61
3.2.1.2. Diversifying sources of mobilized capital 62
3.2.2. Improve credit quality, strengthen appraisal and disbursement in the credit process 65
3.2.3. Expanding relations and strengthening cooperation with businesses in the industry, actively seeking units in need of capital in the industry, and at the same time expanding the scope of credit activities for businesses outside VNT and consumer lending. 70
3.2.4. Develop a reasonable, flexible and competitive interest rate policy in the market 72
3.2.5 Some other measures 73
3.3. Recommendations
74
3.3.1. Recommendations for state agencies 74
3.3.2. Recommendations to VNPT 75
Conclude
76
References
76
Preface
Chapter I: Some general issues on credit activities of Finance Companies
1.1. Overview of Finance Company
1.1.1. Formation and development of Finance Company
a. Concept
As we know, Banks are the most important financial institutions of financial intermediaries. However, not all financial institutions are Banks because in daily transactions there will be many transactions between customers and non-Bank financial institutions.
Along with the development of the market economy, financial intermediaries are increasingly rich and diverse, in which non-bank financial institutions also play an important role in mobilizing financial resources and providing financial services for production, trade, services and investment activities to develop the country's economy. In the development of non-bank financial institutions, financial companies increasingly affirm their position and role as an indispensable financial institution in the economy of each country.
So to
explain for
The necessity of establishing and developing CTTC
We need to understand some concepts below.
Non-bank financial institutions are organizations operating in the field of monetary finance, performing some banking activities as regular business activities but not receiving non-term deposits and providing payment services (according to Article 20 of the Law on Credit Institutions). These organizations include: insurance companies, securities companies, financial companies, investment funds... However, based on their basic characteristics, people divide non-bank credit institutions into 3 types:
Contractual savings institutions such as insurance companies. Investment intermediaries: finance companies, investment funds.
Other non-bank credit institutions: brokerage and trading companies
stock, stock exchange
There are many different ways of understanding and expressing finance companies, the name finance companies only appeared in the 60s of the 20th century. Non-bank financial intermediaries, including finance companies, were formed on the basis of specializing in some banking activities to limit the shortcomings of commercial banks and diversify financial institutions in the market economy.
In each country, depending on the development policy of this type of financial company and the regulations on the types of business activities that financial companies are allowed to operate, they have different concepts about financial companies. However, financial companies in the world all have common characteristics such as: being a professional business organization in the financial market, independent accounting, registered to do business according to the law, business activities are clearly regulated, and professional in certain activities.
In Vietnam, by 1998, when the market economy was gradually being formed, the demand for capital in the economy was increasingly high, besides commercial banks, new financial companies appeared.
Article 2 of Decree 79/2002/NDCP defines a finance company as follows:
as follows: "A finance company is a type of non-bank credit institution, with the following
The function is to use equity capital, mobilized capital and other sources of capital to lend, invest, provide financial and monetary consulting services and perform a number of other tasks.
other services as prescribed by law, but not allowed to do services
payment, not accepting deposits under one year".
Until the 1970s, there were three common types of finance companies: consumer finance companies, retail finance companies and commercial finance companies. Since the 1980s, finance companies have continuously diversified their business activities in many fields such as leasing, financial investment, securities issuance and trading... and at the same time merged and acquired each other to form finance companies with large scale of operation, improving competitiveness and business efficiency.
b. Operating characteristics of Finance Company
From looking at the definition of a finance company, we can draw a conclusion.
Some characteristics of finance company operations are as follows:
Regarding capital mobilization and attraction: Finance companies are allowed to use the following forms:
form of capital and asset mobilization as a trust bank, mainly term deposits, especially long-term deposits, and assets of a storage nature.
hold, the owner cannot be immediately identified and there is no obligation to return, the
valuable certificates, term debt bonds, valued treasures and valuables, copyrights and valued samples expressed in money on long-term deposit accounts at banks (or financial companies). Borrowing capital domestically and internationally from organizations and individuals in some cases, arranging capital and receiving capital entrustment, and trading capital in domestic and foreign financial markets.
On capital use:
Finance company mainly invests
into the projects
sentence
Develop and reconstruct enterprises, technical economic sectors, projects that create high-quality products of great value and bring national and international benefits, and projects to protect, maintain and develop the ecological environment of the country and region.
Regarding banking services: Finance companies are allowed to perform all banking services except issuing payment instruments and interbank current payments (clearing) to customers.
So the outstanding feature is: Finance companies mainly mobilize medium and long-term capital to invest in a number of specialized fields where they have advantages to reduce competitive pressure from banks.
c. The necessity of forming and developing a finance company
There are many reasons for the emergence of financial companies, but the main reason is due to the diverse needs for financial and monetary services in the process of economic development, requiring appropriate financial institutions. The emergence of financial companies makes the activities of the financial and monetary market increasingly rich and flexible. On the other hand, the emergence of financial companies aims to overcome legal restrictions on the activities of banks.
goods (not opened)
wide range of services
banking finance to other fields
(other). Since the banking system cannot meet all the huge and diverse needs for investment capital, many vacant lots require suitable organizations to be present, with small or medium scale, without many branches but still
meet customer needs. One of those financial institutions is financial companies to meet capital needs especially in some key economic sectors forming corporations (business groups). Therefore, financial companies
The birth of the water contributes to the growing fear of water.
economic development
land
In short, finance companies were born because:
Firstly , the establishment and development of financial companies aims to find sources to meet the investment and, especially in the Corporations, on the basis of synchronously implementing forms of capital mobilization within the Corporations, in the domestic and international financial markets.
Second , the establishment and development of financial companies aims to improve the efficiency of mobilized capital sources, repay capital and interest on time, ensure a solid and flexible balance in financial activities through flexible capital management, linked to currency trading activities, and participation in the currency and capital markets.
Third , financial companies are established to improve the efficiency of using assets, works, andinvestment projects through investing capital in the right development direction, works, and projects.
Fourth , the establishment of financial companies enriches the type of financial intermediaries. When the stock market is established and develops , financial companies, especially financial companies belonging to corporations, will be reliable financial intermediaries for member companies participating in the stock market, especially when they do not have the capacity to participate directly.
1.1.2. Basic differences between Finance Company and Commercial Bank
In an open and integrated market economy, especially with the boom of the stock market in recent years, finance companies are no longer a strange concept in Vietnam. However, in reality, many people still confuse finance companies with companies established under the Enterprise Law in general or the boundary between banking organizations and finance companies. Basically, here are the differences between the two organizations:
Nature and scope of operations : A finance company is a type of non-bank credit institution, with the function of using its own capital , mobilized capital and
other sources of capital for lending and investment; providing financial and monetary consulting services and performing a number of other services as prescribed by law, but not providing payment services or accepting deposits of less than one year.
Meanwhile, a bank is a type of credit institution that carries out all banking activities and other related business activities, specifically:
body
is the business of money
and service
bank with content
regularly receive deposits, provide payment services.
use this money to
credit and
Legal capital : Both finance companies and banks must have legal capital, but the legal capital of finance companies is lower than that of banks . According to
Decree 141/2006/NDCP, dated November 22, 2006 of the Government, finance companies
The government was granted a license to establish and operate after the date of the Decree.
141/2006/ND-CP of the Government takes effect and before December 31, 2008, the legal capital must be 300 billion VND; financial companies licensed to establish and operate after December 31, 2008 must have a legal capital of 500 billion VND.
But the legal capital for a bank applied until 2008 is not lower than 1,000 billion VND, depending on the type of bank and applied until 2010 onwards is not lower than 3,000 billion VND.
Type of organization
Function:
Resolution
number
79/2002/NDCP dated
4/10/2002 of the Government divides financial companies into the following types: state-owned financial companies, joint-stock financial companies, financial companies affiliated with credit institutions, joint-venture financial companies and 100% foreign-owned financial companies. This division is no longer compatible with the Law.
Current business in
Vietnam. According to the project
Draft amendment to the Resolution
determine
Government guidelines stipulate that finance companies can only be established in one of the following three forms: single-member limited liability finance company; limited liability finance company with two or more members and joint-stock finance company. In some aspects, banks operate like businesses. However, in terms of nature and operational objectives, banks are divided into commercial banks, development banks, investment banks, policy banks, cooperative banks and other types of banks.