Tiểu luận môn rm solutions to enhance effectiveness in credit risk management of commercial banks in vietnam

Bộ tài Học viện tài Viện đào tạo quốc tế IIFE - TIỂU LUẬN MÔN RM SOLUTIONS TO ENHANCE EFFECTIVENESS IN CREDIT RISK MANAGEMENT OF COMMERCIAL BANKS IN VIETNAM Người thực hiện: Nguyễn Quang Hiển Lớp: DDP0501 Mã SV: DDP0501007 Giảng viên hướng dẫn: TS Lê Đình Hải & TS Lưu Quốc Đạt Hà Nội 2022 Table of contents Chapter 1: general introduction I, The urgency of the subject II, objectives of research and research tasks Chapter 2: overview of research, theoretical and practical research activities of commercial banks in vietnam credit risks in the operation of commercial banks credit risk management efficiency in commercial banks 10 Chapter 3: Research design and methods 15 3.1 Methods of data collection .15 3.2 Methods of data processing 15 3.3 Analytical methods 15 Chapter 4: Actual situation of effective credit risk management of commercial banks in Vietnam 27 4.1 Credit risk issues at commercial banks in Vietnam 27 4.2 Operational solutions .29 4.3 Current status of credit risk management in commercial banks .31 Chapter 5: Proposing solutions to improve the efficiency of credit risk management of commercial banks in Vietnam .33 5.1 Completing the organization of the credit granting apparatus and credit process 33 5.2 Building an effective credit policy 34 Chapter 1: general introduction I, The urgency of the subject Credit risk management plays an important role in securing bank credit and contributing to minimizing risks in banking operations The widening integration of the vietnamese economy into the world economy has facilitated the country' s financial activity, the banking market has many sắc, marking the new development of the vietnamese banking system However, with the characteristic of a sensitive business area, the influence of many direct and indirect factors, banking risk is inevitable and potentially a serious risk of affecting the sustainable development of the bank, the financial market, and the economy in general However, today' s credit risk management work in vietnam' s commercial banks remains khe, the maximum efficiency in reducing credit risk Because credit risk management plays an important role in securing bank credit and contributing to reducing risks in banking operations “SOLUTIONS TO ENHANCE EFFECTIVENESS IN CREDIT RISK MANAGEMENT OF COMMERCIAL BANKS IN VIETNAM” to be able to find out, research the measures to increase the effectiveness of credit risk management in Vietnam II, objectives of research and research tasks research objectives The heading towards achieving the following research objectives: Identifying factors affecting credit risks in the commercial banking system in vietnam Proposed solutions for contributing to improving credit risk management in vietnam' s commercial banking system research tasks To achieve the objectives, the subjects of the following research tasks: · Overview of credit risk management in commercial banks · Clarify the rationale / theory of credit risk management · Analysis of factors affecting credit risks in commercial banks Tiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnam Tiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnam · Assessment of the situation in credit risk management in commercial banks in vietnam · Proposed solutions for enhancing the efficiency of commercial credit risk management in vietnam research questions Any factors affecting the increase or decrease of credit risk in commercial banks? Which measures to reduce credit risk in commercial banks in vietnam subjects and scope of study research subjects Subjects of research subject to credit risk management in commercial banks and solutions to enhancing credit risk management in vietnam 4.2.Scope of study Time range: focus on assessing the effectiveness of credit risk management in vietnamese commercial banks in the 2018 - 2020 segment and offering solutions to improve the effectiveness of credit risk management consistent with the realities of vietnamese commercial banks Space coverage: commercial banks in vietnam Content scope: credit risk management contributions of subjects technically + rõ of credit risk management practices in vietnam + to clarify the factors affecting credit risk management at commercial banks in vietnam + recommendations for improving credit risk management efficiency in vietnam commercial banks practical + the meaning of the subject: Tiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnam Tiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnam Research results have implications for strategic solutions for commercial banks in the management of credit risks from which to find appropriate solutions to the problems of credit risk management and effectiveness of credit risk management At the same time the topic is more enriching than the theoretical basis and the practice of credit risk management in commercial banks, as a reference for similar research topics structure of the subject Chapter 1: general introduction Chapter 2: overview of research, theoretical and practical research activities of commercial banks in vietnam Chapter 3: design and methodology Chapter 4: effective situation of credit risk management by commercial banks in vietnam Chapter 5: propose solutions to enhancing credit risk management by commercial banks in Vietnam Chapter 2: overview of research, theoretical and practical research activities of commercial banks in vietnam credit risks in the operation of commercial banks In the market economy, providing credit is the basic economic function of the bank The risk in banks tends to focus mainly on credit portfolios This is the biggest and often occurring risk When the bank falls into serious financial state, the common cause arises from credit activities 1.1.Concept credit risk is a risk that arises in the bank' s credit, in fact, through the customer' s inability to repay debt or improperly repay the bank credit risk is also known as insolvency risk and false risk, which is the type of risk associated with bank credit You can see that credit risks have two levels: the customer is not due on time and the customer can' t repay the bank 1.2.Credit risk classification Tiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnam Tiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnam Based on the causes of risks, credit risks are divided into two types of transaction risk (transaction risk) and category risk (portfolio risk) Diagram 1: credit risk classification -Transaction risk: is a form of credit risk that causes it due to limitations in transactions and lending, customer reviews The transaction risk has three main components: +The risk risk is the risk associated with the evaluation and analysis of credit, when the bank selects effective borrowing options to make decisions for lending +The risks arising from the standards of guarantee such as the terms in the loan contract, the types of assets guaranteed, the subject guarantee, the method of ensuring and lending on the value of the collateral +Professional risks are risks related to loan management and lending activities, including the use of risk rating systems and handling of problems with problems -Category risk: is a form of credit risk that causes the cause of the bank' s lending portfolio management Category risks are divided into categories: internal risks and concentration risks +Internal risk (intrinsic risk) comes from factors, features that are specific, unique inside of each borrower or sector, economic sector It comes from the characteristics of activities or the use characteristics of borrowing customers 16 Tiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnam Tiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnam significant impact on the formation of objective interest rates according to the market demand, affecting the health and liberalization of the state bank' s supply of money through credit - the rapid increase in credit institutions is necessary for the credit market to develop However, the more credit institutions and financial institutions, the more intense the market competition is Credit institutions are likely to expand their operational areas by setting up and developing more branches, even on the same small area (in the same small administrative unit of districts, towns, but there are also - branches of the same bank established independently) 4.2 Operational solutions On credit administration The state bank shall continue to implement credit solutions to control the credit scale suitable to the orientation, and improve the quality of credit and control inflation and create favorable conditions for access to credit capital By synchronous solutions, in the first nine months of 2021, despite the negative effects of covid - 19, credit grew from the beginning of the year and improved the same period in 2020 According to the state bank' s data, as of october 7, 2021, the total credit balance and investment of the entire system of credit institutions in vietnam rose 42% to the end of 2020, higher than the same period 2020 (the same period of 2020 increased by 48%) With the situation of the epidemic under control and the determination of credit institutions, the end of 2021 will be close to the growth of credit proposal from the beginning of the year On the results of the structure of debt structure for customers affected by the covid - 19 - billion - dollar debt - repayment period of the state bank of 2020, the credit institutions have restructured the debt repayment term for 278, 000 billion by 2020, about 531, 000 billion in debt rescheduling, the group of creditors from 23 / 2020, about 531 trillion ($ 2020, 000, 531), the debt generating group, for customers from 23 january 2020, is about 531 billion In addition, the banking sector has actively implemented other programs that support people, enterprises that are overcome by covid - 19 For pay - off programs, and pay recovery wages (under the government' s resolution no 68 29 Tiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnam Tiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnam / nq - cp of july 1, 2021, and the decision no 23 / 2021 / qd - ttg of july 7, 2021, the prime minister' s $ 130, 741) About utility banking services: Banking and banking operations continue to grow strongly The legal and policy framework in payment activities continues to be completed by the state bank in order to develop non - cash payment (ttkdtm), create favorable conditions for the people to make payment for payment in the period of social reform, many programs, etc., etc.) Ttkdtm still grows In the first eight months 2021, the total number of transactions via the interbank electronic payment system rose 32% to 133, 69%, via a qr channel for the first eight months of the year, via the corresponding tăng, 81%, and 133, 69%, qr, via the qr code, 66, 69%, via a qr, code, qr channel via the qr, kênh, qr channel via the qr, 69%, qr channel, via a qr and 133 About bad debts According to the state bank' s data, from 2012 to the end of june 2021, the entire system of credit institutions handled around 530, 000 billion of bad debt In which, accumulated from august 15, 2017 to 30 / / 2021, the entire system of credit institutions handled nearly 350, 000 billion of the bad debts determined by the national assembly' s resolution no 42 / 2017 / qh14 Meanwhile, if the report of credit institutions, total bad debts determined by resolution 42 / 2017 / qh14 of the entire system of credit institutions in vietnam to june 30, 2021 is 425, 500 billion, down 4% from the end of 2020 Accumulated from 15 / / 2017 to 30 / / 2021, the entire system of credit institutions in viet nam processed 354, 600 billion of bad debts determined by the resolution no 42 / 2017 / qh14 (the state bank calculated from 15 / / 2021), which is at least 2, 600 billion dong and months) According to the report of credit institutions, credit institutions who have handled the bad debts are 183, 000 trillion (51, 61% total bad debts determined by resolution 42) Handling outstanding debts outside the balance sheet determined by resolution no 42 / 2017 / qh14 is 93, 500 billion vnd (accounting for 26 37% total bad debts under resolution no 42 / 2017 / qh14) Handling of bad debts determined by resolution no 42 / 2017 / qh14 sold to vamc (vamc) is 78, 100 billion dong (tpđb) On the basis of 30 / / 30 Tiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnam Tiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnam 2020, the entire system of credit institutions handled 55 trillion in bad debts determined by resolution 42 / 2017 / qh14 Thus, from two different sources of data (aggregated data and announced by the nước; bank of), credit institutions, there is a difference in the result of bad debt handling and bad debt rates at the same time, but not much However, both sources of data show that credit institutions have been very determined to handle bad debts, flexible and diverse forms of debt handling, nhau; resolution no 42 / 2017 / qh14 of the national assembly, which have been coordinated with the functional agencies and organizations that are involved in a very strong process of handling bad debts However, due to the objective factor of the covid - 19 epidemic, the potential rate of bad debt increases in the past two years, poses new challenges in 2022 when enterprises are still difficult by the epidemic and resolution no 42 / 2017 / qh14 Besides the levels, the functional sectors and the support for recovery of local socio - economic development in the new phase of the epidemic should not be much interested in the coordination of bad debts in the resolution of resolution 42 4.3 Current status of credit risk management in commercial banks Commercial banks have implemented the following management policies: • Credit risk management policy for customers: Customer credit risk is managed by comprehensive, comprehensive in all stages of the ability to generate credit risks, through specific regulations of each credit service type - Limit credit for customers: complying with regulations on lending limits and guarantees for customers according to the regulations of the state bank Limit credit to business customers: perform internal credit rating to quantify the risk of each customer' s risk, determine the limits of credit to manage the total credit risk Internal credit rating has 10 classes: aaa, aa, a, bbb, bb, b, ccc, cc, c, d, customers with credit rating from cc or lower Point to - point structure, point - to - point, grade - scoring techniques applied in the continuous credit rating shall be continuously approved in order to conform to reality  Credit allocation policy 31 Tiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnam Tiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnam Geographical distribution : to perform the division of credit - level credit within the geographical area based on the capacity, position and position of each nhánh; subject to the extension of the credit activities in the areas where the credit extension is extended and the credit quality is guaranteed, the maximum credit balance shall be imposed on the credit - quality branches - Distribution by type of product, customer object, item and field: diversifying the products in principle of minimizing risks, diversification of the risks nhừm customers reduce risk of possible risks, diversification of items and investment sectors in accordance with the trend in economic development • regulations on assessment of risks : Make periodical reports on credit quality in the system to assess risk management, and propose measures to improve credit quality  Loan guarantee The feasible business plan is the criteria for deciding the lending However, credit risks are very diverse and there are risks beyond the control of human beings that are unpredictable The application of loan security measures will enhance the accountability and risk sharing of customers with the bank, to increase the application of loan security measures, diversify the form of collateral, to contribute to the decrease in losses, thus contributing to the loss of the risk of the risk • Bad debt handling: To effectively handle bad debts, request commercial banks to operate in the construction of appropriate debt handling solutions in accordance with the actual situation Basic solutions have been taken over time + to set up a bad debt settlement committee at branches including members of the department of professional departments in order to build plans and specific measures, advise the director of the branch to make timely and timely decisions The bad debt handling board shall make periodic meetings once a month to ensure the inspection and supervision of the handling of debt handling and continuously + general orientation of the banks in the handling of bad debts is to implement reasonable solutions on the basis of the analysis of each specific customer' s situation Implementation of negotiation, coordination with customers in debt handling for rapid implementation and less time For customers with a lack of cooperation, ỳ and thác liability, then resolute in taking legal measures, initiating lawsuits to enhance debt recovery 32 Tiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnam Tiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnam Chapter 5: Proposing solutions to improve the efficiency of credit risk management of commercial banks in Vietnam 5.1 Completing the organization of the credit granting apparatus and credit process 5.1.1 Organizational structure of the credit granting apparatus To improve the quality of credit through strengthening the credit capability with an independent credit assessment unit, the effectiveness of the inspection work, the control of the internal inspection and control division, must build a credit risk management unit, the independent internal inspection and control division The proposal for the construction of a credit institution' s system of credit institutions as follows: - To set up the management of credit risk management, internal inspection rooms in the areas attached to the main branch to perform the functions in the management area - Within the scope of the delegated scope, the risk management department shall consider and approve the cases beyond the competence of the branch To create an intermediate layer that affects the speed of processing of the dossier, the vay of the district - level risk management department shall be submitted directly to the higher level (general director, deputy general director) - The jurisdiction of branches of branches: decentralization, decentralization is a requirement in management work 5.1.2 Credit Process With the modification of the credit institution structure, the credit process should follow: 33 Tiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnam Tiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnam - Based on the specific factors of customers, the process of the credit process for enterprises (regardless of d) state oanh and other big businesses) and build credit for private, individual - In the credit process applicable to enterprises, the customer relations office shall be the part of the assessment and suggestions for the credit to the competent authority at the branch approving the branch - To ensure objectivity and control of compliance with guidelines in credit, disbursements always require an independent component, based on decisions made by the approval level, to be precise, ensuring the ability to control the use of customers' capital - Credit limit is limited to working capital lending such as the current logic, but it is necessary to set up a regulation on the total investment loan for the customer' s project to be controlled by the project lending 5.2 Building an effective credit policy It is necessary to develop a reasonable and effective credit policy as follows: - To conform to the specific characteristics of the investment branch of the branch, to promote the local strengths and have limited measures in credit investment for the fields and trades which are not advantaged in the business competition - Reflect credit policy in each period, ensuring unified management on the overall view - To meet the requirements for business efficiency, increase market share , balance between maximizing profits and reducing risks, ensuring credit growth and safe investment in the incidence of bad debts 34 Tiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnam Tiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnam - On customer policy: customer policy will include marketing policies, credit policy policies, lending policy policies, policy guarantees, policies on services, service charges, service charges, and the extent to which the customer policy is applied to the use of the customer' s policy (financial indicators, non - financial) and the extent to which the customer policy is applied - Customer orientation: retail lending on the basis of new conditions on the basis of selection and routing roadmap Conclude Along with the global trend of improving the efficiency of credit risk management, commercial banks in Vietnam have been performing well their tasks and goals Risk management is extremely important and a must in the operation of commercial banks Based on the theoretical foundations of credit risk management, the essay has delved into the study of the current situation, the causes, from which to draw experiences and give specific solutions to improve the effectiveness of credit risk management credit risk management in the Vietnamese commercial banking system Reference list Báo cáo thường liên Ngân hàng TMCP Ngoại thương Việt Nam 2005, 2006, 2007, 2008, 2009,2010,2011 Giáo trình “Quản trị ngân hàng thương mại”- Trường Đại học Kinh tế TP.HCM Giáo trình “Nghiệp vụ Ngân hàng thương mại”- Trường Đại học Kinh tế TP.HCM Website Cổng thông tin điện tử tư pháp: http://www.moj.gov.vn Website Ngân hàng TMCP Ngoại thương Việt Nam www vietcombank.com Website Bộ Tài chính: http://www.mof.gov Website Wikipedia Others website : www.vnexpress.com, www.vnecono my.vn 35 Tiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnamTiểu.luận.môn.rm.solutions.to.enhance.effectiveness.in.credit.risk.management.of.commercial.banks.in.vietnam 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