MINISTRY OF EDUACTION AND TRAINING STATE BANK OF VIETNAM BANKING UNIVERSITY OF HCMC GRADUATION THESIS Major Banking finance Topic IMPROVING THE EFFICIENCY OF LENDING ACTIVITIES FOR INDIVIDUAL CUSTOMER.
MINISTRY OF EDUACTION AND TRAINING STATE BANK OF VIETNAM BANKING UNIVERSITY OF HCMC GRADUATION THESIS Major: Banking finance Topic: IMPROVING THE EFFICIENCY OF LENDING ACTIVITIES FOR INDIVIDUAL CUSTOMERS AT ASIA COMMERCIAL JOINT STOCK BANK - LAC LONG QUAN BRANCH Student: VÕ THỤY NGỌC QUYÊN Student ID: 050606180314 Instructor: Assoc.Prof ĐẶNG VĂN DÂN HCMC, June 2022 MINISTRY OF EDUACTION AND TRAINING STATE BANK OF VIETNAM BANKING UNIVERSITY OF HCMC GRADUATION THESIS Major: Banking finance Topic: IMPROVING THE EFFICIENCY OF LENDING ACTIVITIES FOR INDIVIDUAL CUSTOMERS AT ASIA COMMERCIAL JOINT STOCK BANK - LAC LONG QUAN BRANCH Student: VÕ THỤY NGỌC QUYÊN Student ID: 050606180314 Instructor: Assoc.Prof DÂN ĐẶNG VĂN HCMC, June 2022 INTRODUCTION Set the problem As society is developing more and more, it is not only companies and businesses that need capital for production and business, expanding markets, but now individuals are also the ones who need capital more than ever People's living standards are increasingly improving, they not only want to "eat well, dress warmly" but have gradually switched to "eat well, dress well" and also many other needs that need to be met that make most people want to use goods before being able to pay Increasing people's borrowing needs To meet that demand, personal loan service was born and developed with more diversified and richer products Personal lending is also a measure to help stimulate demand for the economy Contributing significantly to increasing profits, minimizing risks for the bank, and meeting the increasing credit needs of customers On the side of Asia Commercial Joint Stock Bank, a well-known and reputable bank in Vietnam, ACB's main task is retail banking In parallel with the traditional banking segment, it will focus more on the digital banking segment Which, lending to individual customers in recent years has been promoted by the bank, one of the channels contributing to significant profits for the bank The urgency of the thesis One year after Vietnam joined the World Trade Organization (WTO), the bank has achieved many successes In which, credit activities play a decisive and important role And banks have always played an extremely important role in the process of world economic integration Because banks are not only the most effective source of capital, but also directly participate in the macroeconomic management of the economy In addition to joint-stock commercial banks, the state-owned bank, in addition to the goal of developing! the state economy, continues to promote marketing and customer attraction through more open policies, reducing fees, simple procedures, and more diverse services In addition to the goal of attracting customers, encouraging old customers to increase their demand, it is also to make a profit in the fastest time and more importantly, it is also a solution to the stagnation of mobilized capital In recent years, although the lending activities of banks have achieved remarkable results, they are still limited and encounter many difficulties What can be done today is still small compared to the increasingly urgent requirements of the capital of the economy With the orientation to become a multi-purpose, modern, and developed bank, ACB also pays special attention to providing capital support for investment in machinery and equipment, technological innovation, and building factories to open new businesses expand production and business! activities, and better serve people's lives Because credit activities are the most important activities bringing the highest profits, contributing the most to the total income of the bank Through lending activities, the bank will indirectly stimulate investment by the population, contributing to improving the living standards of local people and the growth of the country's economy Therefore, I decided to choose the topic: “Improving the efficiency of lending activities for individual customers at Asia Commercial Joint Stock Bank” Aim of the study Analyze the indicators, scale, structure, and effectiveness of lending to individual customers, limitations in lending activities, and contribute solutions to help ACB expand market share and grow lending to individual customers Overview of personal credit activities of Asia Commercial Joint Stock Bank Lac Long Quan branch over years (2019-2021) Analysis of indicators, scale, structure, and efficiency of lending to individual customers at ACB to assess the lending! situation at Asia Commercial Joint Stock Bank, Lac Long Quan branch from 2019- 2021 Proposing several solutions to expand market share and grow lending to individual customers at a safe and reasonable rate in the current challenging economic conditions Research question To achieve the research purpose mentioned above, the thesis will focus on understanding and analyzing to answer the following key questions: Firstly, what are the products and services of Asia Commercial Joint Stock Bank? Second, how is the personal credit activity of the Asia Commercial Joint Stock Bank Lac Long Quan branch going? Third, what is the strategic orientation to! develop personal credit activities at Asia Commercial Joint Stock Bank, Lac Long Quan branch? What specific goals are there? Object and range of study Research object: The subject of the study focuses on personal credit activities in the retail department of Asia Commercial Joint Stock Bank Lac Long Quan branch in the years 2019, 2020, 2021 Scope of the research: Using relevant and necessary data, which are fully and disclosed in the financial statements of Asia Commercial Joint Stock Bank, Lac Long Quan branch, in the period from the year 2019 to 2021 Research methods Research using qualitative methods Data collection: using secondary data obtained from available sources, data that have been synthesized and processed Secondary data sources are financial reports, annual reports, and statistics of the State Bank of Vietnam to clarify the subject matter Apply comparison and contrast method; statistics of data; methods of analyzing economic activities to make comments and propose appropriate improvement measures to improve the efficiency of lending to individual customers at ACB Topic layout The topic is divided into chapters: Chapter 1: General theoretical basis for personal loans of commercial banks Chapter 2: Actual situation of personal credit activities at Asia commercial joint stock bank Lac Long Quan branch in the period of 2019-2021 Chapter 3: Some recommendations and solutions to develop personal credit activities at Asia commercial joint stock bank – Lac Long Quan branch PLEDGE I hereby declare that this graduation thesis is completely honest, done by myself and with the support of my supervisor The information and data used in the graduate thesis is information clearly sourced and cited in the thesis I take full responsibility for this promise! Author Vo Thuy Ngoc Quyen TABLE OF CONTENTS LIST OF ACRONYMS LIST OF TABLES LIST OF CHARTS CHAPTER 1: GENERAL THEORETICAL BASIS FOR PERSONAL LOANS OF COMMERCIAL BANKS 1.1 Loan concept of commercial banks 1.2 Loan classification of commercial banks 1.2.1 Based on the purpose of using the loan .1 1.2.2 Based on loan term .2 1.2.3 Secured nature of the loan 1.2.4 Loan method 1.3 Credit characteristics of commercial banks 1.4 The role of personal credit in the economy .6 1.4.1 For economy 1.4.2 For the bank 1.4.3 For customers 1.5 Process of personal credit operations 1.6 Loan quality assessment criteria 11 1.6.1 Growth rate of outstanding loans 11 1.6.2 Ratio of outstanding loans to mobilized capital (%) .11 1.6.3 Debt collection coefficient (%) 12 1.6.4 Rate of overdue debt (%) 12 1.6.5 Credit turnover (cycle) .12 1.7 Factors affecting credit performance 12 1.7.1 Group of factors belonging to the bank 12 1.7.2 Group of factors belonging to customers 13 1.7.3 Group of factors belonging to the economic environment 13 CHAPTER 2: ACTUAL SITUATION OF PERSONAL CREDIT ACTIVITIES AT ASIA COMMERCIAL JOINT STOCK BANK LAC LONG QUAN BRANCH IN THE PERIOD OF 2019-2021 15 2.1 Introducing personal loan products at Asia Commercial Joint Stock Bank Lac Long Quan branch .15 2.2 Business performance at Asia Commercial Joint Stock Bank Lac Long Quan branch in the period of 2019-2021 16 2.2.1 Capital raising situation 16 2.2.2 Loan balance by product at Asia Commercial Joint Stock Bank, Lac Long Quan branch in the period of 2019-2021 19 2.2.3 Status of loans to individual customers by term 22 2.3 Bad debt in credit of joint stock commercial bank ACB Lac Long Quan branch 25 2.3.1 Bad debt situation over time 25 2.3.2 Bad debt situation by product structure .27 2.4 Credit performance at ACB Commercial Joint Stock Bank Lac Long Quan branch 30 2.4.1 Evaluation of the bank's credit performance .30 2.5 Achievements and limitations .32 2.5.1 Achievements 32 2.5.2 Limitations .33 CHAPTER 3: SOME RECOMMENDATIONS AND SOLUTIONS TO DEVELOP PERSONAL CREDIT ACTIVITIES AT ASIA COMMERCIAL JOINT STOCK BANK – LAC LONG QUAN BRANCH 35 3.1 Oriented development 35 3.1.1 General goal .35 3.1.2 Detail goal 36 3.2 Solutions to improve personal credit activities at Asia Commercial Joint Stock Bank - Lac Long Quan branch 36 3.2.1 Perfecting credit policy 36 3.2.2 Improving the quality of credit officers 37 3.2.3 Promote the Bank's marketing activities 37 3.2.4 Improve the quality of appraisal work and the ability to recover capital, limit credit risks 38 3.2.5 Expand product and service development, exploit differentiated products with advantages 39 3.3 Some recommendations .39 3.3.1 For state banks .39 3.3.2 For the government 40 29 debts for personal loans However, there is a slight downward trend, specifically in 2019 from 31.82% to 31.50% in 2020 and 27.48% in 2021 The reason for the decrease is that the bank monitors the customer's financial situation to take reasonable risk treatment measures to ensure a more reasonable debt collection In addition, loans for production and business also had strong fluctuations, specifically in 2019, VND 1,405 billion, a slight decrease of VND 1,298 billion, and increased sharply to VND 2,381 billion This shows that in 2021, the economy will face many difficulties, trading activities will also face many difficulties, and goods have a lot of inventory since then, customers will not be able to repay their debts Secondly, the branch is still subjective in debt collection monitoring activities Therefore, banks need to focus on making many policies and plans for debt collection and monitoring the repayment ability of customers more often Although the Bank has a team of qualified and experienced staff, there are still many difficulties in debt collection The settlement of due debts has not been prompt, giving rise to overdue debts or bad debts, which leads to the existence of bad debts in the report This point shows that the credit and appraisal work of credit officers is still not high In addition, environmental factors affect customers' ability to repay debts, causing bad debts to arise more and more Bad debt is an indicator reflecting the quality of credit operations at a bank If at a certain time The higher a bank has bad debts, the higher the proportion of total outstanding loans, and the worse the credit service quality at that bank and vice versa Although bad debt has increased over the past three years, this does not mean that the bank's credit quality has decreased, but because bank loan sales have increased continuously, this proves that the credit quality of the bank not only does not decrease but tends to develop better The problem of bad debt is inevitable in business The reason is that on the one hand, due to an increase in outstanding loans, it is obvious that bad debts will also increase, due to the competitive market, on the other hand, some customers have good reputations and relationships with banks, but suddenly the business situation is not good Business failure should cause the debt process to be delayed or not paid, resulting in an increase in bad debt 30 2.4 Credit performance at ACB Commercial Joint Stock Bank Lac Long Quan branch Evaluating a bank's business performance is to consider whether the criteria on capital use, capital turnover, profit, and cost are effective or not, and are consistent with economic development policies of the area or not? Thereby promoting the strengths and proposing solutions to overcome the weaknesses to improve the efficiency of the bank's credit operations 2.4.1 Evaluation of the bank's credit performance Table 2.6: Assess personal credit performance Targets Unit 2019 2020 2021 Mobilized Billion dong 885,429 1014,930 1091,760 Billion dong 195,510 174,191 201,628 Debt collection Billion dong 52,615 87,799 91,565 Total debt Billion dong 80,610 93,443 108,573 Bad debt Billion dong 3,869 3,644 6,948 loan Billion dong 50.365 63,849 68,343 9,10 9,2 9,9 capital Loan sales Average balance Outstanding balance/ mobilized capital % 31 Debt collection % 26,91 50,40 45,41 1,04 1,38 1,34 0,048 0,039 0,064 coefficient Credit cycle Bad debt Time / % Outstanding balance 2.4.1.1 Outstanding balance on mobilized capital This is an indicator that reflects the level of investment of mobilized capital in lending activities It helps us analyze and compare the lending capacity of banks with mobilized capital If this indicator is too large or too small, it is not good Because if it is too large, the bank's ability to mobilize capital will be low, if it is too small, the bank will use its capital inefficiently In general, over the past years, the bank's capital mobilization has been quite good, which is reflected in the ratio of mobilized capital to outstanding loans In 2019, there was an average of 0.91 VND of outstanding loans in VND of mobilized capital In 2020, this index is equal to 0.92, which means that in VND of mobilized capital, the outstanding loan balance is 0.92 VND in it By 2021, this indicator will increase by 0.99 compared to 2019 and 2020 by 0.99 Thus, this indicator has increased over the years from 2019-2021 2.4.1.2 Debt collection on loan sales This ratio is called the debt collection ratio It reflects the effectiveness of credit in the debt collection of the bank The larger this coefficient, the better In general, over the past years, the debt collection ratio fluctuates complexly Specifically, in 2019, the debt collection ratio is 26.91%, in 2020 it will increase to 50.40% and decrease slightly in 2021 to 45.41% The reason for the sharp increase in 2020 is that the bank has well implemented the policies, targets, and plans set out and applied many handling measures to recover debts, especially bad debts, leading to an increase in loan capital 32 2.4.1.3 Credit cycle This indicator measures the speed of credit capital turnover, reflecting how fast or slow the loan recovery time is The larger this index, the better, which means good debt recovery Through analysis of loan sales, we find that short-term loans always account for a higher proportion than medium and long-term loans The table shows that the credit turnover of the branch fluctuates in an increasing direction In 2019 1.04 rounds to 2020 increased by 1.38 rounds and in 2021 it decreased slightly to 1.34 rounds The reason for the increase was the increase in loan sales and therefore the increase in debt collection, leading to the possibility of a good capital turnover for the bank 2.4.1.4 Bad debt on outstanding balance This index reflects the credit quality of the Bank, showing how effective or risky the bank is in lending? The bank's total outstanding loans have increased over the past years, while bad debts will increase slightly in 2020 and increase sharply in 2021 The bank needs to take measures to limit bad debts 2.5 Achievements and limitations 2.5.1 Achievements Outstanding loans and revenue from personal credit activities have good growth For the ACB Lac Long Quan branch, individual customers are always considered the main target customer group Currently, when the market is taking place, there is fierce competition among banks Outstanding personal loans have continuously increased over the years, contributing positively to the branch's loan structure The number of customers coming to the branch to transact is increasing day by day This is good news for the branch This helps to improve the image and enhance the competitiveness of the bank Customers who come to borrow money often tend to use banking services such as card services, deposit services, payment services, etc The image through the branch is promoted more widely, contributing to the expansion of other activities, and increasing service revenue for the bank 33 Revenue from personal credit activities also contributes a significant part to total revenue from credit activities About loan quality Overdue debt for personal loans at the branch is low This activity is assessed as having a high level of safety among lenders because the loans are small, mainly with mortgaged assets For the need to purchase and repair houses, the main collateral is the land use right and assets attached to the land, followed by the mortgage with the land use right Bad debts are recoverable Risk management and credit quality improved significantly The ratios are all within the safe threshold This is also a success of the branch This proves that credit risk management of the branch is always focused Debt handling and recovery are concerned in order to ensure the safety of the branch The bank has gradually simplified lending procedures Thereby creating favorable conditions for customers when they need to grant credit, improving the bank's competitiveness, attracting many new customers, and maintaining prestige and trust with old customers About personnel ACB's staff regularly attend many training classes to improve professional skills, communication skills, and marketing skills to meet customer needs The bank's credit staff is very active and enthusiastic in finding and advising customers The leadership of ACB Bank Lac Long Quan branch has an interest in the bank's employees, giving them their enthusiasm for work That also contributes significantly to achieving good results in banking activities because people are the most important factor 2.5.2 Limitations Personal loan products are not diversified Personal lending activities at the branch, although there have been many changes and obvious developments, are still not significant compared to the needs of customers Personal loan products at the 34 branch are still not diversified, mainly focusing on loans for land purchases and home repairs The branch's customers are still not diversified, mainly traditional customers with long-term relationships with the branch, and the attraction of new customers is not high and effective The target audience is households, those with low and middle income who not have products or policies to encourage them to participate in this personal loan market Banks are also passive in finding new customers Banks sometimes also focus on loan collateral but leave good customers with a stable income to be able to repay the loan but are rejected because the collateral does not satisfy the bank's regulations The content of articles about ACB has just stopped reporting on activities such as increasing charter capital and opening branches and transaction offices Information about new products, services, and promotions has not been promoted much, and relationships with agencies and schools are still limited In addition, ACB has not linked with electronics stores, car manufacturers, etc to introduce installment loan products to customers This is probably a big shortcoming in the ACB brand promotion The branch has not really paid attention to the regular inspection and supervision of the loan use process The majority of bad debts arise from customers using them for the wrong purposes The branch still does not have a dedicated department to monitor and supervise the implementation of regulations and procedures of transaction offices to promptly correct mistakes and limit risks for the entire system In addition, the branch still lacks drastic measures in dealing with overdue debts, causing overdue debts during the year to increase 35 CHAPTER 3: SOME RECOMMENDATIONS AND SOLUTIONS TO DEVELOP PERSONAL CREDIT ACTIVITIES AT ASIA COMMERCIAL JOINT STOCK BANK – LAC LONG QUAN BRANCH 3.1 Oriented development 3.1.1 General goal With the goal of affirming ACB's position in the domestic and regional markets ACB has clearly defined its strategy ACB's medium and long-term development orientation is to become a leading, modern and versatile retail bank in Vietnam Striving to build the Lac Long Quan branch as one of the key joint-stock commercial banks in the Saigon area, continuing to strongly develop business activities with the goal of safety, efficiency, create a foundation for sustainable and long-term development At the same time, we carry out the responsibility of sharing difficulties with the community through social security policies 36 3.1.2 Detail goal Implement the strategy of customer diversification, increase the number of individual customers by promoting areas of activity, especially retail banking, securities channels, and maintain business efficiency growth Building a solid and professional workforce to meet the increasing needs of customers and the development trend of the industry Maintain market share in the area; grow the scale and maintain credit quality, exploit the maximum efficiency of foreign currency sources from individual customers, strive for the income and expenditure gap per capita not to be lower than the average of the whole industry, limit operational risks, maintain effectiveness, and executive management skills Increase the proportion of loan sales of individual customers in total assets, profit, deposit, and lending balance in the direction of commercial banks focusing on retail Continue to maintain and promote well the state of debt collection to increase and achieve higher efficiency Ensure the bad debt ratio is below 1.5%; reduce the cost of provision for credit risks Building and perfecting the process of automating all activities related to individual customers, focusing on credit activities first 3.2 Solutions to improve personal credit activities at Asia Commercial Joint Stock Bank - Lac Long Quan branch 3.2.1 Perfecting credit policy Reasonable and attractive interest rates Depending on the needs and repayment capacity of the customer, the branch sets a loan balance for each customer Branches should be flexible about lending levels for each type of customer 37 Diversified and suitable loan terms: Diversify loan terms to ensure credit principles such as repayment ability, ensure the purpose of capital use and conditions to ensure debt capacity as well as facilitate inspection and monitoring 3.2.2 Improving the quality of credit officers The training of human resources should be conducted in a focused and intensive manner according to each type of service In addition to good qualities, professional qualifications and a sense of compliance are also essential factors to avoid loopholes in the appraisal, inspection, and supervision stages, thereby can bring higher efficiency In addition, employees need to be constantly updated with the bank's and state's policies on credit, ensuring that the correct process is followed as well as the law when making loans With the credit segment, the bank can also arrange and assign staff in charge of personal loans to each customer segment to create more harmony and specialization in operations Branch employees need to improve their skills and ability to communicate with customers It is necessary to have a staff with civilized, polite, gentle, and friendly manners with customers, creating a good image in the customers' hearts With a dedicated, thoughtful, and dedicated attitude toward customers, it is certain to maintain a good relationship between the bank and its customers 3.2.3 Promote the Bank's marketing activities The purpose of marketing activities is to attract customers to access and use the bank's products and services, on the other hand, to make an impression on customers about the bank, improve its face, and increase its reputation and prestige The bank through this activity must provide its customers with knowledge of the procedures, conditions, and other regulations when having a credit relationship with the bank, its outstanding advantages compared to other banks, and benefits received by the customer These messages must be designed to be simple, easy to understand, and suitable for the perception of many different customer groups 38 To attract the attention of consumers All events that attract social attention should be used to make the bank's brand more familiar However, it is also necessary to have a choice when sponsoring, avoiding sponsoring events that are not suitable for the bank's activities The bank can organize events to promote new products, guide and advise customers in choosing the right products and services for them through newspapers, television stations, links with schools, commercial centers, industrial zones,… Once the promotional and marketing campaigns have been carried out, bank staff can contact the agencies, the unit is eligible for a loan to arrange a meeting between the bank's staff and the staff at the unit to introduce the bank's consumer lending business 3.2.4 Improve the quality of appraisal work and the ability to recover capital, limit credit risks Appraisal is an important step in the credit process, it determines whether to lend to customers or not and at the same time determines the quality of loans In this stage, collecting information about customers is extremely important For individual customers, the appraisal is mainly based on the information provided by the customer Usually, this information is not very accurate First of all, it is necessary to see the creditworthiness of the borrowers and resolutely implement all covenants in the credit contract Income level and stability in customers' income are important information to assess loan repayment ability Directly meet and get to know customers about where they live and work Because if a person lives in one place for a long time, it can be believed that his life is stable If a person often changes residence, it will be a disadvantage for the bank when deciding to lend Banks must regularly evaluate and monitor customers This is very necessary because it shows that the customer has used the loan for the right purpose and is willing to repay the loan or not The use of loan capital should be inspected periodically or irregularly, to ensure that loans are closely monitored, and there are measures to handle and recover debts in a timely manner 39 3.2.5 Expand product and service development, exploit differentiated products with advantages The branch needs to implement the following activities to meet the needs of customers such as arranging a teller department to serve customers outside of working hours Currently, customers who want to withdraw money at the branch must arrive before 5pm Therefore, customers who work during office hours cannot withdraw money Banks should arrange overtime for customers to be more convenient The second is to develop card services and install a number of ATMs in public places, where there are many employees and students This brings convenience and saves time for customers Besides the above services, the branch should open consulting services such as consulting on financial investment activities These activities not only generate income for the bank but also find new customers For customers with deposit accounts in foreign currencies Branches need to have preferential policies with them in the process of using the account such as: when customers withdraw foreign currency from the account, if they want to convert to VND, the bank will buy foreign currency at a higher price than the price the bank buys from outside customers or buy at the selling price, but the customer has to pay a fee (low fee) With the current Covid situation, banks should have products to protect the health of their customers For customers, it is both to save money and protect themselves As for the bank, this is a product that brings a great investment 3.3 Some recommendations 3.3.1 For state banks Flexible management of open market operations, interest rates, other tools to continue to support commercial banks with the ability to ensure high liquidity, and regulate deposit and lending rates of commercial banks at a stable and reasonable level 40 Creating favorable conditions for the development of debt trading and credit insurance markets to minimize and analyze risks Having appropriate policies for the stock market and real estate market to develop stably and firmly in order to reduce risks caused by such markets such as liquidity, legality,… Ensure safety and efficiency of business operations of credit institutions In particular, directing credit institutions to monitor, forecast and proactively take measures to prevent possible risks, strictly observe regulations on safety ratios, strictly control credit quality, focus on analyzing, evaluating, and forecasting closely fluctuations in foreign currency supply and demand in the market Take timely intervention measures to stabilize the supply and demand of foreign currency and stabilize the exchange rate in the market 3.3.2 For the government Due to the rapidly developing socio-economic situation, many new social relations arising in the market economy really need a healthy legal adjustment for economic development Therefore, it is very necessary to require a synchronous legal system as legal support for banks and businesses Moreover, our country's legal system is not stable The frequency of amending, supplementing, and canceling legal documents is still very high, especially the Enterprise Law, Foreign Investment Law, Land Law, making relevant documents such as business licenses, land ownership documents, etc unclear, making it difficult for the Bank in the process of reviewing projects for loans The government must stabilize the macro environment, determine the economic development strategy, stabilize prices, maintain the inflation rate at a reasonable level, and businesses to have the opportunity to expand and develop production activities business, as well as meet the diverse needs of consumer goods and services for the population Raise income and living standards of the population, thereby stimulating consumption demand in the population Thus, the Bank's lending activities were expanded and loan quality improved 41 The Government also needs to direct the People's Committees at all levels and competent agencies to speed up the granting of certificates of house ownership and land use rights to households, individuals, and businesses, to facilitate benefits for the bank in the appraisal, lending, debt collection, and collateral handling CONCLUSION In the past years, Asia Commercial Joint Stock Bank - Lac Long Quan branch has achieved remarkable achievements The bank has quickly built a reputation with customers and has made certain contributions to the city's development This is evidenced by the increasing number of visitors coming to the transaction as a source of mobilized capital, and sales are also constantly growing Lending activities of Asia Commercial Joint Stock Bank ACB - Lac Long Quan branch have contributed to promoting business activities and investment activities of all economic sectors, while realizing business goals, while fulfilling the economic development goal of 42 the region, thereby creating a better life for the people Although it was during the Covid-19 pandemic, the bank's credit activities were relatively stable In the coming time, personal credit activities are forecasted to be more active Banks must direct credit to production, business, priority areas according to the policy of the Government, loans to serve life needs, consumer credit with reasonable interest rates Focusing credit on a number of production areas, with priority given to agriculture, rural areas, exports, supporting industries, small and medium-sized enterprises, high-tech applications, and valuable trade and service industries high growth rates such as exports, services, logistics In summary, in personal credit activities, ACB - Lac Long Quan branch has obtained many remarkable! achievements, although there are still some limitations With the goal of becoming the most effective joint-stock commercial bank in Vietnam, it is hoped that in the near future the bank will continue to maintain the achieved results and develop further, contributing to the common goals of the whole bank REFERENCES 1.Tran, A K., & Thai, T T (2013) Factors affecting consumer credit access in commercial banks of households in Can Tho City, Viet Nam Can Tho University Journal of Science, 28, 26-32 2.Tran T T (2020) The Impact of Balanced Scorecard on Performance: The case of Vietnamese Commercial Banks Journal of Asian Finance, Economics and Business, 7(1), 71-79 Nuryartono, N., Zeller, M., & Schwarze, S (2005) Credit Rationing of Farm Households and Agricultural production: Empirical Evidence in the Rural Areas of Central Sulawesi, Indonesia Conference on International Agricultural Research for Development, Stuttgart-Hohenheim, 11-13.14 Le, K N., & Pham, V H (2011) Factors determining the amount of official credit loans of farm households in Hau Giang province, Viet Nam Banking Review, 9, 42-48 Kim, H., & DeVaney, S (2001) The Determinants of Outstanding Balances Among Credit Card Revolvers Financial Counseling and Planning,12, 10-12 https://finance.vietstock.vn/ACB-ngan-hang-tmcp-a-chau.htm Trần Huy Hoàng, (2010), Quản Trị Ngân Hàng, Nhà xuất Lao Động Xã Hội, trang 166 – 185 Trương Quang Thơng, Quản Trị Ngân Hàng, Nhà xuất Tài Chính, trang 74 – 78 Báo cáo tài NH TMCP Á Châu Việt Nam năm 2019, 2020, 2021 10 Báo cáo kết hoạt động kinh doanh ACB chi nhánh Lạc Long Quân ... by product at Asia Commercial Joint Stock Bank, Lac Long Quan branch in the period of 201 9-2 021 Table 2.2: Loan balance by product at ACB Lac Long Quan branch in the period of 201 9-2 021 Unit:... loans of commercial banks Chapter 2: Actual situation of personal credit activities at Asia commercial joint stock bank Lac Long Quan branch in the period of 201 9-2 021 Chapter 3: Some recommendations... AT ASIA COMMERCIAL JOINT STOCK BANK LAC LONG QUAN BRANCH IN THE PERIOD OF 201 9-2 021 2.1 Introducing personal loan products at Asia Commercial Joint Stock Bank Lac Long Quan branch + Home loan