Chapter 1 NATIONAL ECONOMIC UNIVERSITY English Bachelor of Business Administration Nguyen Binh lam SITUATIONS AND RESOLUTION OF PERSONAL CONSUMING CREDIT OF ASIA COMMERCIAL BANK O CHO DUA BRANCH T[.]
NATIONAL ECONOMIC UNIVERSITY English Bachelor of Business Administration Nguyen Binh lam SITUATIONS AND RESOLUTION OF PERSONAL CONSUMING CREDIT OF ASIA COMMERCIAL BANK - O CHO DUA BRANCH THESIS Student Code : 11122055 Class : EBBA 4A Supervisor : ASSc Prof., Dr. VU THANH HUNG Hanoi - 2015 TABLE CONTENT TABLE CONTENT i LIST OF TABLES & CHARTS vi CHAPTER 1: INTRODUCTION 1.1 Reasons for choosing the thesis 1.2 Research objectives .1 1.3 Research questions 1.4 Research scope .2 1.5 Research methodology 1.5.1 Research process 1.5.2 Data collection CHAPTER 2: THEORETICAL BACKGROUND .3 I/ Concept, nature and role of credit .3 Concept Characteristics of Credit The function of credit 3.1 Focus and redistributed on the basis of monetary capital repayment .4 3.2 Payment Satisfaction and make money 3.3 Credit boost production development: 3.4 Credits contribute to stabilizing the currency and price stability 3.5 Credits contributed to stabilizing the life, create jobs and stabilize social order II Classification of bank credit .6 Based on the loan purpose .6 Based on the tenor Based on the level of reputation for customers Based on the mode of repayment Based on the origin of the credit III / Customer’s consuming credit 1/ The concept and characteristics of consumer credit: .9 1.1 Concept 1.2 Features i 2/ 3/ 3.1 / 3.2 4/ 4.1 4.2 / 4.3 / 5.1 / 5.1.1 5.1.2 5.2 / 5.2.1 5.2.2 5.3 / 5.3.1 5.3.2 6/ 6.1 / 6.2 / 6.3 / 6.3.1 6.3.2 IV/ 1/ 1.1 1.2 1.3 1.4 1.4 1.5 2.1 Object of consumer’s consuming credit: .9 Classification of consumer credit .10 Direct Consumer credit 10 Indirect Consumer credit 10 The significance of consumer credit 10 For consumers .10 For banks 11 For providers 11 The measures to gaurantee credit 11 Guarantee credit methodology 11 Concept 11 Classification and collateral conditions .11 Pledge of property .11 Concept .11 The types of pledging property 12 Guarantees 12 Concept 12 Stakeholders .12 Analysis of consumer’s consuming credit 12 Objective .12 Content of analysis 12 Analysis Method 13 Method score system 13 Judgment method 14 Factors affecting effective personal credit .15 Factors from the Bank 15 Credit policy of the Bank 15 Credit Process .16 Business banking institutions 17 Qualities and qualifications of staff .17 Internal control 18 The mobilization of capital 18 Factors from customers 18 Capacity of the customer .19 ii 2.2 The honesty of the customer .19 2.3 Risks in the business of customer 19 Collateral 20 3.1 Not keep up with the innovation process .20 Other factors 20 4.1 Economic environment .20 4.2 The social environment .21 4.3 Natural environment 21 CHAPTER 3: OVERVIEW OF ACB – O CHO DUA BRANCH 23 Introduction .23 Business live: monophyletic 24 Market scope .24 Organization structure .25 4.1 Structure management apparatus of ACB 26 4.2 Asia Commercial Bank - Branch O Cho Dua .27 4.3 The organization chart of departments of ACB – O Cho Dua branch 28 History and development process 28 5.1 Origins birth 28 5.2 Strategic Vision 28 5.3 Developing progress 29 Evaluate the company: ACB 31 7.1 ADVANTAGES 32 7.2 DISADVANTAGES: 33 CHAPTER 4: ANALYZING THE CURRENT SITUATION OF CONSUMER LOANS AT ACB - O CHO DUA BRANCH 36 I/ Products for consumer loans at commercial banks of Asia - O Cho Dua branch 36 1/ Loan conditions 37 2/ Procedures for loan .37 3/ Loan process .37 II/ Evaluate consumer loans at commercial banks of Asia - O Cho Dua branch 41 1/ Analysis of the situation of consumer loans under the loan portfolio structure: 42 iii 1.1 / Analysis by loans structure 42 1.2 / Analysis at the rate of consumer’s consuming loans / Total mobilized capital 44 1.3/ Analysis by tenor of loans 46 1.4 / Analysis of each loan 47 Analysis situation of loans overdue: 49 3/ Analysis profitable of lending activities for consuming : 49 CHAPTER 51 SOME REVIEWS AND RECOMMENDATIONS TO IMPROVE THE EFFICIENCY OF CONSUMER LOANS AT COMMERCIAL BANKS OF ASIA - O CHO DUA BRANCH 51 I/ Reviews .51 1/ Strengths 51 2/ Weaknesses 52 3/ About ACB - O Cho Dua 53 3.1 Completion and implementation of strict lending process 53 3.2 Diversification of consumer credit products and promoting consumer’s reputation loans 54 3.3 Do not see collateral is primarily base to make lending decisions .54 3.4 Valuation of collateral shoulg be scientifically accurate .55 3.5 Promote marketing strategies bank 55 CONCLUSION 56 iv LIST OF TABLES & CHARTS Chart 1: Comparison of consumer’consuming loans/ total loans and other loans 43 Chart 2: Comparison of consumer’s consuming loans to total mobilized capital 46 Chart3: Comparision short-term, long-term loans to total customer’s consumingloans 47 Table 1: The structure of loan portfolio over years 42 Table 2: Comparison between targets and implementations in ACB – O Cho Dua branch 44 Table 3: Consumer’s consuming loans / Total mobilized capital 44 Table 4: Loans by tenor 46 Table 5: Status of loans overdue by year 49 Table 6: Profit for consumer loans over the year 49 vi Acknowledgement First and foremost, I would like to express my deep love and appreciation to my parents, brothers, sisters, and my little wife, who always encouraged me with love and spiritually supported me throughout my life Especially, I am very much thankful to my wife for her love, understanding, and continuing support to complete this research work I would like to express my deep and sincere gratitude to my advisor ASSc Prof., Dr VU THANH HUNG for the continuous support of my thesis study and research, for his patience, motivation, enthusiasm, and immense knowledge in all five academic years I appreciate all his contributions of time, ideas, and funding to make my thesis experience productive and stimulating I also want to express my thankfulness to the National Naational Economics University's Library for the technical supports I would like to acknowledge my advisor MR Hung, who gave me valuable and constructive comments on the manuscript and helped me to increase the quality of the thesis I would like to thank my research group members: Tzon-Han, Yu-Chuan, Zhong Wei and Chao-Yu for the stimulating discussions and time worked together I also wish to thank the labmates for their help and sharing during the time I worked in DASD laboratory My thankfulness would also send to my friends who have been studying in NCU for their sharing to overcome all obstructs in the study-time, especially, Duy-Manh who we have had useful discussions for my research Besides, I would like to thank everyone who supported and helped me to complete research work directly or indirectly Finally, I would like to acknowledge the financial, academic and technical supports of the National Economics Universitym ACB - O Cho Dua branch Especially, I thank Mrs Van (Director of ACB - O Cho Dua branch) the for their support and assistance during my thesis study Executive summary In recent years, Vietnam's economy developed rapidly, leading to the living standards of people increasingly enhanced Catching up with the demand that Asian commercial banks in general and ACB – O Cho Dua in particular large market has been improving and enhancing products and services Operation area of Asian commercial banks O Cho Dua branch are concentrated on working class immigrants, civil servants, private business households, particularly in the small business market So consumer credit outstanding proportion of loan sales and also the major source of revenue of the bank Due to see the importance of consumer credit for the operation of the Asian Commercial bank -O Cho Dua branch work has always focused on consumer lending, contribute to the system to become the leading retail bank Over time learning and training in the EBBA National Economics University- HN and have access to vivid reality of credit operations in Asia Commercial Bank - Branch O Cho Dua I noticed that the understanding and analysis of the Consumer Credit operation is essential From the above reasons I chose the theme: REAL SITUATIONS AND RESOLUTION OF PERSONAL CONSUM CREDIT BANK OF ASIA COMMERCIAL BANK - O Cho Dua Branch This research aims to achieve the following objectives: Review the concepts and theories related to credits and banking loans Analyze and evaluate the current situation of customers loans of ACB – O Cho Dua branch Give some recommendations to improve the efficiency of consumer loans at commercial banks of Asia - O Cho Dua branch This research aims to achieve the following questions: How could a loan be gived by the Bank? What is the current situation of customers loans of ACB – O Cho Dua branch? How to improve the efficiency of loans for consuming at commercial banks of Asia - O Cho Dua branch? Research scope Object: customers in ACB - O Cho Dua branch Location: in Ha Noi and especially in ACB - O Cho Dua branch Time: data collection from 2013 to 2015 In theories, I review the Characteristics of Credit, the Functions of Credit in general and then the concept and characteristics of consuming credit, Guarantee credit methodology, Pledge of property Im Analysis of consumer’s consuming credit, I make non-financial analysis and financial analysis using score system method and Judgment method In other hands, I show factors affecting effective personal credit including factors from the Bank, factors from customers,cnollateral and other factor Afterthat, I analyze and evaluate the current situation of customers loans of ACB – O Cho Dua branch base on data collected from the branch's reports between 2013 and 2015 and use it to compare between consumer’consuming loans/ total loans and other loans, between targets and implementations in ACB – O Cho Dua branch, Analysis at the rate of consumer’s consuming loans / Total mobilized capital, Analysis by tenor of loans, Compare short-term, long-term loans to total customer’s consumingloans, Analysis of each loan Analysis situation of loans overdue and finally Analysis profitable of lending activities for consuming Therefore, I can point out strengths and weaknesses of the bank From the problems being shown I give solutions and recommendations to improve: Completion and implementation of strict lending process Diversification of consumer credit products and promoting consumer’s reputation loans Do not see collateral is primarily base to make lending decisions Valuation of collateral shoulg be scientifically accurate ... situation of customers loans of ACB – O Cho Dua branch? How to improve the efficiency of loans for consuming at commercial banks of Asia - O Cho Dua branch? 1.4 Research scope Object: customers... situation of customers loans of ACB – O Cho Dua branch? How to improve the efficiency of loans for consuming at commercial banks of Asia - O Cho Dua branch? Research scope Object: customers in... market So consumer credit outstanding proportion of loan sales and also the major source of revenue of the bank Due to see the importance of consumer credit for the operation of the Asian Commercial