Significance of study
Between 2017 and 2021, the global economy underwent significant changes, particularly due to the detrimental effects of the Covid-19 pandemic, which heavily impacted Vietnam In response, the Vietnamese government has relied on banks as a key measure to support businesses and individuals for swift economic recovery, highlighting the banking system's central role in the country's financial framework Banks are tasked with effectively allocating capital resources while also managing the mobilization of funds from various sources, including savings and idle assets Furthermore, banks play a crucial role in supervising investment companies' plans and decisions, providing essential tools to mitigate investment risks.
Analyzing the performance of commercial banks is crucial for the banking system's role in the economy, as it informs investment decisions for management teams and investors While assessing a bank's condition is not a new endeavor, it remains vital due to the ever-changing economic fluctuations both globally and in Vietnam Each commercial bank's orientation varies based on these economic cycles, necessitating a thorough evaluation of their performance This evaluation helps determine the adequacy of policies proposed by the Board of Directors and provides timely recommendations and solutions to enhance the safety and profitability of commercial banks.
Developed in 1979, the CAMEL model is a renowned analytical tool for evaluating bank performance, utilized by researchers to assess both companies and banks This framework, based on the CAMELS model, integrates various financial ratios to identify strengths and weaknesses in bank performance The reliable insights gained from this evaluation enable managers to formulate effective profit-maximizing strategies for their institutions.
Understanding the significance of financial and banking analysis, along with the practical application of the CAMELS model, is crucial for assessing efficiency in the banking sector This article focuses on the topic: "Applying the CAMELS Model in Evaluating Bank Performance: The Case of MSB Bank."
Literature review
Foreign research
Evaluating cοmmercial banks’ performance is an outstanding topic that attracts a huge number of researchers from all over the world
Rahman and Islam's (2017) study titled “Use of CAMEL Rating Framework: A Comparative Performance Evaluation of Selected Bangladeshi Private Commercial Banks” analyzed 17 private commercial banks from 2010 to 2016 Utilizing the CAMEL model's 24 sub-parameters, the research employed a fixed effects regression model to assess how each component influences the overall performance of these banks.
Omrani and colleagues (2018) conducted a study titled "A Bi-Level Multi-Objective Data Envelopment Analysis Model for Estimating Profit and Bank Performance of Bank Branches," aiming to simultaneously measure profit and operational efficiencies across 45 bank branches in West Azerbaijan province The research involved two phases, transitioning from the Data Envelopment Analysis (DEA) model to the Fuzzy Goal Programming (FGP) model The operational performance was categorized into three levels to establish specific values for individual perspectives, creating a suitable framework for future assessments.
In their 2019 study, Sari and partner employed a two-stage TOPSIS analysis alongside stepwise regression to evaluate the performance of 10 commercial banks in Turkey from 2008 to 2018 By utilizing maximum-minimum criteria rather than traditional input-output approaches, their findings revealed that loan-related factors, including the loan ratio, non-performing loans (NPLs), and the allocation and management of loans, significantly impact the banks' overall performance.
The study by Khararoudi et al (2019) examined banking performance, emphasizing the relationship between ambidexterity and financial outcomes By incorporating the concepts of exploitation and exploration from the perspectives of customer agents, central bank agents, and commercial bank agents, the research found that an ambidextrous approach enhances bank performance compared to focusing solely on exploration or exploitation This suggests that investing in ambidexterity can attract more clients and financial institutions, ultimately improving capital input and operational activities.
Domestic research
Research by Le Hoang (2017) used the REM and the FEM models to “research on factors affecting the performance of Vietnamese commercial banks” between
Between 2011 and 2015, nine key variables were identified that influence the performance of commercial banks in Vietnam, encompassing both internal and external factors External factors include the political, economic, cultural, and social environment, as well as inflation and GDP growth rate Internal factors consist of operational time, bank size, capital structure, financial structure, effective cost management, and operational risk The findings highlighted six primary factors affecting bank performance during this period: operational time, bank size, financial structure, effective cost management, credit risk, and liquidity risk Additionally, these results provide a theoretical foundation for understanding the effectiveness of commercial banks in Vietnam today.
The research of Ha Thanh and Hoang Viet (2018) about “Analysis of the bank performance of Vietnam's joint-stock commercial banking system” concentrated on
A study involving 23 out of 30 active commercial banks from 2011 to 2016 utilized the DEA model to assess the influence of bank capital on profitability and credit risk The findings, derived from CRSTE, VRSTE, and SE regression methods, indicated that banks were not managing their input resources as effectively as anticipated A significant factor contributing to this inefficiency was the tendency to allocate more resources towards interest expenses and related charges Additionally, banks faced upward pressure on deposit rates due to anticipated inflation and the need to enhance deposit rates for safety compliance following Circular 06 Consequently, this situation diminished banks' motivation to lower lending rates, leading to a limitation in credit availability and an increase in capital to maintain the CAR ratio, which subsequently exerted pressure on the cost of capital.
A study by Minh Kieu and Thuy Trang (2020) utilized the SFA model alongside the DEA model to analyze the technical efficiency of joint stock commercial banks in Vietnam The findings reveal that the banks' growth during this period is closely linked to the effective implementation of BASEL II, which has fostered technological advancements and enhanced brand recognition in the market Furthermore, management practices significantly influence the performance of these banks; those with robust management policies, efficient asset utilization for profit generation, high liquidity, superior capital adequacy ratios, and the integration of advanced technology into their operations demonstrate improved performance.
Many analysts evaluate the banking industry's performance through technical efficiency analysis, primarily utilizing two methods: Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA) Previous research often combines these approaches with regression analysis to explore the factors influencing bank performance, although much of the survey data is outdated To provide a comprehensive view of the operational status of commercial banks in Vietnam in recent years, employing the CAMELS model for performance analysis is recommended.
Research purpose
This research explores the measurement of commercial bank performance using the CAMELS model, focusing on the business activities within the banking sector By analyzing the CAMELS framework, it identifies key factors influencing bank performance from 2017 to 2021, particularly within the MSB banking system The study clearly delineates the impact of each CAMELS component on overall performance Additionally, it provides actionable recommendations aimed at enhancing profitability and efficiency in the commercial banking sector.
Object and scope of study
Research subjects: assessing the MSB commercial bank’s perfomance by applying CAMELS model
The research utilizes data gathered from MSB Bank's annual reports and consolidated financial statements, alongside reports from securities companies, covering a five-year period from 2017 to 2021 to ensure both reliability and accuracy.
Research methods
The research is mainly analyzed through qualitative method For further analysis, the following analysis tools for supporting the qualitative method are used including: collecting and synthesizing, comparative, dupont method
This article focuses on the collection and synthesis of secondary data from both domestic and international research projects concerning the application of the CAMELS model in banking analysis Specifically, it examines the MSB Joint-Stock Commercial Bank's operations from 2017 to the present, utilizing the CAMELS model for a comprehensive analysis Additionally, it aims to forecast the bank's performance in the coming years, highlighting the relevance and effectiveness of the CAMELS model in evaluating banking activities.
Comparative analysis: The information synthesized by the period of 2017 -
The year 2021 serves as a crucial benchmark for analyzing growth rates across various indicators This data not only facilitates horizontal comparisons over time but also enables vertical comparisons, where each indicator is assessed against related metrics within the same category By expressing these comparisons as percentages, we can effectively highlight the relationships and growth dynamics among the selected indicators.
Dupont analysis is primarily used to interpret the Return on Equity (ROE) and Return on Assets (ROA) ratios by breaking them down into their component indicators This analysis compares the bank's ROE targets over the years, examining the factors that contribute to its growth or decline By doing so, it enables a comprehensive assessment and prediction of ROE trends for future years.
Structure of the study
The content of the thesis is divided into 3 main parts
Chapter 1: Theoretical framework of analysis of the commercial bank’s performance Chapter 2: Situation of financial performance of the MSB commercial bank
Chapter 3: Solutions and recommendations for improving the MSB commercial bank’s performance
THEORETICAL FRAMEWORK OF ANALYSIS OF THE
Concept and characteristics of bank performance
Business performance is a crucial concept across various fields, including economic, technical, and social domains, each offering unique perspectives and criteria for evaluation Economically, while opinions may differ, the consensus emphasizes the importance of resource exploitation in achieving business objectives and driving economic growth In the banking sector, business performance serves as a key indicator of economic progress and is fundamental for assessing the effectiveness of a bank's economic strategies, particularly in relation to the organization, mobilization, distribution, and management of capital during operational activities.
Efficiency, as defined by Farrell (1957), is the relationship between the output produced and the input utilized in that production process This approach allows for the comparison of a firm's actual performance against an ideal standard of perfect efficiency A key benefit of this perspective is its ability to illustrate the fundamental connection to economic efficiency Additionally, Farrell identified the effective boundaries of a business system aimed at maximizing profits and outputs while using fixed inputs However, the precise quantitative and qualitative relationship between these results remains unclear and does not adequately capture the strength of this connection.
Bank performance refers to how effectively a bank utilizes its resources to meet its goals, as defined by Rengasamy (2012) It encompasses the execution of specific activities and the fulfillment of obligations, measured through various indicators that reflect the bank's current status and its capacity to achieve desired objectives.
The European Central Bank (ECB) (2010) emphasizes that a bank's performance is fundamentally linked to its ability to generate sustainable profits, which are vital for ongoing operations and providing fair returns to investors Profitability is not only crucial for banks but also for supervisors to assess the overall banking environment Similarly, Ferrouhi and El Mehdi (2018) describe bank performance as the primary driver of profitability from banking operations, underscoring its significance as the cornerstone of all banking activities Their research also expands the scope of bank performance to include liquidity and risk management objectives.
Chenini Hajer and Jarboui Anis (2016) define bank performance as the successful attainment of set objectives within a specified timeframe and with minimal costs, utilizing available resources effectively Additionally, bank performance involves analyzing tools and metrics for comprehensive control and management of the business system, serving as a guide for organizational behavior and motivation.
Performance in banking reflects the effective use of resources to achieve business goals, primarily focusing on maximizing profitability while minimizing costs By analyzing the relationship between inputs and outputs, as well as assessing opportunities, risks, and investment expenses against business results, we can evaluate bank performance This evaluation highlights not only economic outcomes but also the social benefits derived from banking activities.
1.1.2 Assessing methods of the banking system
Evaluating a firm's performance is crucial for enhancing the efficiency of its entire business portfolio, particularly in commercial banks where it directly impacts monetary services like deposits, withdrawals, and loans Implementing effective assessment methods allows banks, investors, researchers, and customers to gauge performance accurately, leading to informed policies that can drive improvement and boost overall performance.
Banking performance is primarily assessed using financial and profitability ratios, which serve as key indicators for analyzing a bank's financial data and overall position within the banking system Recently, two prominent methods have emerged for evaluating bank performance: the Dupont model and the CAMELS model, widely utilized by researchers and banking institutions alike.
The Dupont method is a framework for analyzing fundamental performance
The Return on Equity (ROE) is calculated using three interrelated components: profit margin, asset turnover, and financial leverage This breakdown allows for the identification of which component most significantly influences fluctuations in ROE The formula for calculating ROE incorporates these three essential elements.
The Dupont model, expressed as ROE = Profit Margin × Asset Turnover × Financial Leverage, is a vital tool for investors and analysts assessing bank performance As noted by Harm (2002), bank managers operate in a complex regulatory environment that can create conflicts between shareholder demands and regulatory pressures This unique corporate governance structure distinguishes banks from less regulated industries, presenting challenges for managers, regulators, and stakeholders, while directly influencing ROA and ROE By utilizing the Dupont model, investors can analyze specific factors affecting return on equity, enabling them to gauge potential returns on their investments and make informed decisions aligned with the bank's performance targets.
The DuPont analysis model offers a precise evaluation of changes in a company's Return on Equity (ROE) by examining profit margins, asset utilization, and financial leverage By effectively managing costs, financing choices, and asset usage, a company can enhance these elements to boost shareholder value and returns This method is not only straightforward to calculate but also enables investors to identify the factors contributing to fluctuations in equity returns Additionally, the DuPont analysis provides insights into the return on investment (ROI) for shareholders, empowering investors with a clearer understanding of the company's financial health and fostering confidence in their investment decisions.
The DuPont analysis, while comprehensive, relies heavily on accurate inputs derived from a company's income statement and balance sheet, making researchers dependent on the data published by the company This dependency can be problematic, as companies may manipulate their financial statements to attract investors or secure partnerships with financial institutions Even with reliable data, challenges arise in assessing the relative value of financial ratios against industry norms Therefore, evaluating financial ratios is most effective when conducted in comparison to industry peers or the company's historical performance, providing a clearer picture of its operational effectiveness.
The CAMELS model is an internationally recognized rating system employed by bank supervisory authorities to evaluate financial institutions based on six key factors Each bank is assigned a score on a scale from one to six, where one indicates the highest quality and six represents the lowest.
The CAMELS framework serves as an essential internal monitoring tool utilized by supervisory agencies like the Financial Institutions Ombudsman, the State Bank, and the State Securities Commission to evaluate the financial stability of institutions and identify areas needing closer scrutiny Research by Barker & Holdsworth highlights the CAMEL system's effectiveness in predicting bank failures through a structured rating approach that incorporates both qualitative and quantitative data Numerous academic studies have examined the efficacy of these criteria in ranking institutions, particularly in the context of the rapidly evolving banking landscape The US Federal Financial Regulations (FFIEC) were initially approved to enhance these monitoring efforts.
In 1979, the CAMEL system was introduced, and following the Asian economic crisis in 1997, the International Monetary Fund (IMF) and the World Bank recommended its application in countries affected by the crisis to help rebuild their financial sectors In the same year, the CAMELS framework was enhanced by adding an additional component, S (Sensitivity to market risks), which is still in use today.
Overview of CAMELS in evaluating bank performance
A commercial bank's capital represents the monetary value generated or utilized by the bank for lending, investing, and providing various business services Its capital structure comprises owner’s equity, mobilized capital, borrowed capital, and other forms of capital.
Capital adequacy is a crucial measure of a bank's financial strength, represented by the ratio of its core capital to its overall performance This stable core capital fosters depositor confidence and enhances safety, while also mitigating risks for the institution As a key financial factor, capital adequacy underpins a bank's ability to offer financial services, invest, and hedge against potential losses Furthermore, it indicates whether a securities company possesses sufficient capital to absorb unforeseen losses, taking into account its leverage.
According to Basel II standards, which are widely adopted by banking systems globally, the minimum Capital Adequacy Ratio (CAR) is set at 8% A higher capital base allows banks to engage in riskier business opportunities, potentially enhancing profitability Conversely, insufficient capital can elevate the risk exposure of commercial banks during adverse events Consequently, while banks often aim for a lower CAR to maximize shareholder returns, regulators and central banks advocate for a higher ratio to ensure the stability and safety of the banking system.
The total equity ratio reflects the relationship between a bank's total assets and its owner's equity A high ratio may suggest that the bank has taken on significant debt to sustain its operations, which could indicate a strategic use of leverage However, excessively high levels can lead to unsustainable debt burdens, increasing interest costs and jeopardizing the bank's financial stability Conversely, a low ratio might imply that the bank operates without debt or is overly conservative, potentially missing out on valuable business opportunities.
Bank assets represent the mobilization of capital to create income-generating opportunities, primarily through profitable assets that account for the majority of the bank's portfolio These assets are crucial for earning interest and generating profits while maintaining liquidity Profitable assets, which include loans, finance leases, investments in securities, and capital contributions to joint ventures, serve as the bank's primary income source but also carry significant risks Among these, the credit portfolio is typically the largest asset for commercial banks, necessitating careful oversight by managers, investors, and regulatory bodies.
Poor quality assets are a primary factor in the failure of many banks, as noted by Drier (2007) The evaluation of asset quality, particularly in relation to loans, is crucial since the primary risk for banks stems from capital loss due to late loan repayments Frost (2004) emphasizes the importance of tools for assessing asset quality, particularly highlighting the significance of the non-performing loans (NPLs) index in evaluating bad debts.
NPLs to total loans = NPLs
Overdue debt ratio = Overdue debts
The ratio of non-performing loans to total loans should be maintained at or below 1%, as this reflects the proportion of loans issued to customers with low repayment ability This metric, along with the overdue rate calculated from the bank's classification of debts into five groups, serves as an indicator of the bank's debt quality and the effectiveness of its customer loan management Adhering to these standards is crucial for compliance with Basel II regulations.
The study document "Banking Management" from the Faculty of Banking at the Banking Academy identifies key indicators for assessing banking performance through the CAMELS framework, focusing on Asset Quality (A) These indicators include total asset growth rate, credit growth rate, overdue debt ratio, and bad debt ratio Pham Quynh Trang (2018) further categorizes these indicators into main asset proportion indicators, key credit quality indicators, and those related to investment and business activities.
Loan quality ratio = Total loans
The bank primarily engages in lending activities while also investing in securities The allocation of assets varies based on business objectives and management capabilities, leading to changes in the ratio of the loan portfolio to total assets A higher ratio indicates a greater concentration on credit, suggesting increased profitability but also heightened risk.
= Credit balance ATE of the period − credit balance ATB of the period
Maintaining a stable credit balance ratio, ideally around 10%, is crucial for banks to avoid exceeding their credit limits The credit growth rate indicates the bank's loan expansion and a high, stable rate signifies a growing asset scale However, an excessively high and unstable ratio can lead to increased credit risks and bad debts, negatively impacting the bank's profits Therefore, banks must adjust their growth rates according to each period's risk management capabilities and the regulations set by the State Bank.
The total assets ratio is essential for assessing the proportion of total assets that are allocated to investments This metric aids administrators in effectively balancing mobilized capital and investments, ensuring the stability and security of the bank's business capital.
The size, structure, and quality of a bank's assets are crucial for its existence and growth, as most operational risks are tied to these assets Ensuring adequate capital and enhancing credit asset quality are vital for maintaining the bank's safety Poor asset quality is a primary cause of bank failures, often resulting from ineffective lending management When the market perceives low asset quality, it can pressure the bank's short-term capital, potentially triggering a liquidity crisis or a rush of withdrawals.
Assessing the management capability of bank leaders is crucial, as their decisions are essential for identifying, measuring, and controlling risks to ensure safe and effective operations in compliance with legal standards Governance capacity is influenced by the organizational structure, the educational background, and the administrative skills of leaders, along with the effectiveness of operational mechanisms to adapt to market fluctuations Additionally, it reflects the ability to reduce operational costs and enhance productivity, maximizing output from available resources This analysis emphasizes income and remuneration as key indicators for evaluating management capacity, based on financial perspectives and data derived from published financial statements of commercial banks.
Profitability serves as a crucial indicator of business performance, reflecting the effectiveness of management through strategic leadership It is widely acknowledged that the earning ability of commercial banks significantly influences capital formation, attracting investors and fostering growth When evaluating the earnings of these banks, it is essential to assess their stability and reliability, comparing them with similar-sized institutions Additionally, the earnings stability and proportion relative to the bank's size and its peers within the banking system are critical factors to consider.
Applying the CAMELS model, the thesis will use three criteria: return on total assets (ROA), return on equity (ROE) and net interest margin (NIM)
Return on total assets (ROA) = 𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒
The return on assets (ROA) ratio illustrates the connection between a bank's profitability and its total assets, indicating how effectively the bank generates profits from its assets A higher ROA signifies greater efficiency in asset utilization, revealing the amount of interest earned per dollar of assets In contrast, a lower ROA suggests less effective use of resources.
SITUATION OF FINANCIAL PERFORMANCE OF THE
Introduction of the MSB commercial bank
2.1.1 Overview of the MSB commercial bank
Vietnamese registered name: Ngan Hang Thuong Mai Co Phan Hang Hai Viet Nam English registered name: Vietnam Maritime Commercial Joint Stock Bank
Headquarters: 54A Nguyen Chi Thanh, Lang Thuong ward, Dong Da district, Hanoi city
MSB has developed a wide network with a total number of network points spreading in Viet Nam including:
- 300 ATMs with a wide coverage in 51/63 provinces in Viet Nam
Figure 2.1: Organizational structure of MSB bank
From MSB Bank’s annual statements
The General Meeting of Shareholders, comprising all voting shareholders, serves as the highest authority within MSB, addressing critical matters in line with legal and charter stipulations It convenes through annual meetings, extraordinary sessions, and by gathering shareholder opinions via documentation This assembly holds the power to approve MSB's development direction, elect or dismiss Board of Directors and Supervisory Board members, and exercise additional rights as defined by law.
The Board of Directors at MSB Bank holds comprehensive authority to exercise rights and obligations on behalf of the bank, except for matters designated for the General Meeting of Shareholders Comprising six members, including the General Director, an independent member, and four non-executive members, the Board is supported by various committees that enhance banking governance and facilitate the execution of business strategies These committees include the Risk Management Committee, Risk Handling Committee, Human Resources Committee, Strategy Committee, Technology Committee, and the Board of Directors' Office, all aimed at ensuring effective, safe, and proper development of the bank's objectives.
The Board of Supervisors at MSB conducts internal audits and evaluates compliance with laws, internal regulations, the Charter, and decisions made by the General Meeting of Shareholders and the Board of Directors Comprising three expert members, the Supervisory Board is supported by an assistant department and an internal audit department, which can utilize MSB's resources and engage external experts and organizations to fulfill its responsibilities effectively.
The General Director – The legal representative of MSB bank
The General Director of MSB Bank serves as the highest executive officer, overseeing daily operations while being accountable to the Board of Directors and the Supervisory Board This role entails adhering to legal provisions and the bank's charter, with the General Director bearing responsibility for any legal violations that result in damage to MSB Bank, including the obligation to compensate for such losses.
The General Director is supported by a team that includes Deputy General Directors, the Chief of Office, and Directors from various divisions and councils, such as the Capital Management Council, Product Development Council, and Risk Management Council Under the General Director, several key units operate, including Retail Banking, Corporate Banking, and the Technology Division, alongside specialized departments like Marketing and Communications, Legal and Compliance Advisory, and Digital Transformation.
The organizational structure of MSB Bank is strategically designed to separate business operations from support activities, allowing specialized banks to concentrate on customer development and promotion Support units play crucial roles in operations, technology, and risk management, while the specialized banks adopt a customer segmentation approach MSB employs a "bank in bank" model, enabling each specialized bank to operate autonomously in managing costs, revenues, and profits, which enhances the efficiency and smooth execution of tasks and requests.
Capital mobilization involves activities such as accepting deposits, issuing certificates of deposit, bonds, and treasury bills to raise funds from individuals and businesses It also includes borrowing capital from both domestic and international sources, as well as from credit institutions and the MSB, in compliance with MSB bank regulations.
Credit activities encompass the provision of loans to individuals and businesses, the discounting of commercial papers and other valuable documents, and the issuance of bid and contract performance guarantees These services also include financial leasing and other forms of credit as regulated by banking authorities.
Payment and treasury services: perform payment services, collection and payment, L/C payment letters, cash collection and check payment services for customers
In addition to capital contributions and share purchases, activities include participation in the money market, trading valuable securities in both VND and foreign currencies, engaging in foreign exchange trading, offering insurance services for assets, and trading various other valuable papers.
2.1.2 History and development of the MSB commercial bank
Founded in 1991, MSB has evolved into a robust multi-purpose financial group with an extensive presence across Vietnam over the past 30 years The bank has successfully established its brand and reputation through effective business operations, a diverse range of services, and exceptional risk management strategies With a modern information technology infrastructure, MSB is expanding into new market segments beyond traditional banking, earning recognition as a stable, safe, and reliable financial institution committed to sustainable development.
Period 1: 1991 – 2010: Establishment and initially development
1991: Officially established in Hai Phong city MSB is the first joint stock commercial bank licensed in Vietnam with a charter capital of 40 billion dong
2005: Moved the head office to Hanoi city
2007: Register as a public company to State Security Commission of Vietnam
2010: Signed strategic consulting agreement with McKinsey & company
2014: Is one of 10 banks selected by the State Bank to pilot Basel 2
2015: Merged with Mekong Development Joint-stock commercial bank and acquired TFC Company
Period 3: 2016 – 2020: Recovery with new development strategies
2018: Successfully piloted the Basel 2 system
2018 – 2023: Signed a new phase of strategic consultation with McKinsey & company
2019: Changing the brand from maritime bank to msb bank to improve credit rating
2020: Complete 3 criteria of Basel 2 and listed on HOSE
Period 4: 2021 – now: Expanding scale after listing
2.1.3 MSB commercial bank’s strategic goals
Mission: “For a more convinient and comfortable”
Vision: “Become a bank that everybody wants to join and nobody wants to leave”
MSB Bank prioritizes customer benefits, emphasizing convenience and comfort in all its products and services In today's fast-paced society, where time is a precious commodity for busy individuals, customers seek high-quality and convenient banking solutions that allow them to focus on their other responsibilities MSB Bank aims to support national development as a long-term goal, contributing significantly to the economy and fulfilling its monetary policy role The bank recognizes that its success hinges on delivering value to customers, ensuring a sustainable and robust future for both the institution and its clients.
Core values o Responsibility o Listening o Respect o Innovation o Efficiency
Applying CAMELS to evaluate MSB commercial bank’s financial stituation
A Overview of the capital situation
Figure 2.2: Changes in total capital of MSB bank from 2017 to 2021
From MSB Bank’s financial statements
From 2017 to 2021, MSB bank's capital steadily expanded, with growth rates rising from 21.20% in 2017 to 22.75% in 2018 However, in 2019, the growth rate dropped significantly to 13.94% due to the economic impact of the Covid-19 pandemic Although Vietnam's economy began to recover in 2020, MSB bank continued to feel the effects of the crisis It wasn't until 2021 that MSB's growth rate rebounded, increasing by approximately 3% within a year The bank's capital grew from 156,978 billion dong in 2019 to 203,665 billion dong in 2021, marking a total increase of 46,687 billion dong, or 29.74%, during the 2018-2021 period, despite fluctuations in growth rates Understanding the capital structure is essential to explain the variations in MSB bank's capital growth.
Total capital Growth rate of total capital
Table 2.1: Capital structure of MSB Bank during the period 2017 – 2021
Deposits and borrowings from other credit institutions 29,534 37,671 47,017 56,026 68,035 Deposits from customers 56,848 63,529 80,873 87,510 94,616 Derivatives and other financial liabilities 53 162 7 52 77
Total liabilities and owner's equity 112,239 137,769 156,978 176,698 203,665
From MSB Bank’s financial statements
The capital structure analysis reveals that the bank's liabilities consistently represent approximately 90% of its total capital Between 2017 and 2021, total capital rose by 91,426 billion dong, driven primarily by an increase in liabilities of 83,110 billion dong, while owner's equity saw a modest rise of 8,316 billion dong Consequently, the significant growth in capital and the overall expansion of MSB bank can be attributed mainly to the rise in liabilities.
Liabilities have risen significantly due to an increase in issued valuable papers, customer deposits, and loans from other credit institutions Customer deposits, which consistently represented over 50% of total capital, dropped from 56,848 billion dong in 2017 to 94,616 billion dong in 2021 Deposits and borrowings from other credit institutions nearly doubled in just five years Meanwhile, amounts owed to the Government and the State Bank of Vietnam fluctuated, starting at 2,020 billion dong in 2017, peaking at 9,708 billion dong in 2018, and then falling to 21 billion dong over the next two years before surging to 1,017 billion dong in 2021, largely due to the economic impact of the COVID-19 pandemic In response, the State Bank of Vietnam reduced reserve requirements for commercial banks Additionally, MSB's issued valuable papers grew steadily from 13,722 billion dong in 2017 to 22,038 billion dong in 2021 In 2021, MSB successfully raised 13,043 billion dong through bond issuance, with 8,399 billion dong coming from bonds with terms of 12 months to 5 years, utilizing various methods for capital mobilization to enhance tier-2 capital.
Figure 2.3: CAR ratio of MSB bank and other joint-stock commercial banks of Vietnam
From MSB Bank’s financial statements
In 2017, MSB Bank achieved one of the highest capital adequacy ratios (CAR) among commercial banks in Vietnam, consistently meeting the State Bank of Vietnam's regulations According to Basel I, the minimum CAR requirement is 8%, and MSB maintained compliance during the first two years, demonstrating its strong capital adequacy.
CAR ratio of MSB and other commercial banks in Vietnam
Between 2017 and 2018, the average Capital Adequacy Ratio (CAR) of joint-stock commercial banks, including ACB, TP Bank, and MSB Bank, significantly surpassed the average CAR of commercial banks in Vietnam This trend highlights MSB Bank's improved capital adequacy, attributed to effective management of capital and credit risk From 2019 to 2021, MSB Bank's CAR showed a gradual increase, rising from 10.25% in 2019 to 11.24% in 2021, coinciding with its adoption of Basel 2 in 2019 The State Bank of Vietnam mandates a minimum CAR of 9% for joint-stock commercial banks, which MSB Bank has consistently met, indicating its capacity to support risky assets However, MSB Bank's CAR remained below the average for joint-stock commercial banks during this period, suggesting challenges in customer lending and loss absorption To address this, MSB Bank has aimed to boost its charter capital, achieving a 41.92% increase from 11,110 billion dong in 2019 to 15,275 billion dong in 2021.
The CAR ratio of MSB bank is the lowest compared to TP bank and ACB bank, indicating a need for improvement in its capital adequacy level This is attributed to the slower growth rate of MSB's core capital relative to its risky assets, resulting in lower risk coverage compared to its competitors.
MSB Bank aims to enhance its profit-making scale through credit growth by increasing risky assets such as lending and investments, alongside boosting capital through retained earnings However, while pursuing growth, it is crucial for MSB to prioritize risk management, focusing on market, credit, and operational risks, while maintaining a stable Capital Adequacy Ratio (CAR) A stable CAR not only ensures financial safety and risk hedging but also fosters customer trust and solidifies MSB's position in the banking industry.
Table 2.2: The financial leverage of MSB bank in 2017 – 2021
Total average assets 102,423 125,004 101,833 166,838 190,182 Average equity 13,661 13.771 14,342 15,870 19,457 Financial leverage (times) 7.50 9.08 7.10 10.51 9.77
From MSB Bank’s financial statements
The COVID-19 pandemic significantly impacted both owner’s equity and total assets Between 2017 and 2018, financial leverage increased sharply from 7.50 to 9.08 times, reflecting a 21.07% change However, subsequent trends indicate further fluctuations in these financial metrics.
From 2019 to 2020, MSB Bank experienced a significant increase in financial leverage, rising to 10.51 times, an increase of approximately 48% This surge was driven by a growth rate of assets that consistently outpaced equity growth, with liabilities primarily increasing due to capital mobilization from deposits and paper issuance, indicating a strong market reputation and customer trust However, in 2021, financial leverage slightly decreased to 9.77 times Despite this fluctuation, MSB Bank continues to maintain a healthy financial position, with leverage levels lower than comparable banks in the industry.
Figure 2.4: Financial leverage of the average commercial banks in Vietnam and MSB bank
From MSB Bank’s financial statements
Over five years of research, MSB Bank's financial leverage was significantly lower than that of the average commercial banks in Vietnam, indicating a slower growth of liabilities compared to equity This suggests that MSB Bank relies heavily on equity to navigate financial situations While the bank maintains a safe level of leverage, it has not fully capitalized on the potential benefits of financial leverage By effectively utilizing financial leverage, MSB Bank could increase its profitability; however, this strategy also exposes the bank to liquidity risks related to future customer withdrawal demands.
Table 2.3: Owner’s equity of MSB bank in 2017 – 2021
Capital 11,880 11,110 11,110 11,110 15,767 a Charter capital 11,750 11,750 11,750 11,750 15,275 b Reserves for investments in construction 1 1 1 1 1 c Share premium 400 400 400 400 492 d Treasury shares - -1,041 -1,041 -1,041 -
From MSB Bank’s financial statements
MSB Bank's owner’s equity has shown a steady but modest increase over the years, rising by 98 billion dong in 2018, 1,044 billion dong in 2019, 2,011 billion dong in 2020, and 5,163 billion dong in 2021 The charter capital remained unchanged at 11,750 billion dong until 2020, indicating that the bank did not issue new shares or pay dividends in shares during this period However, in 2021, MSB Bank's charter capital increased to 15,275 billion dong, which is essential for expanding its business activities and enhancing competitiveness against both domestic and foreign banks To boost equity, MSB Bank, like many commercial banks, may increase charter capital through new share issuance or mergers and acquisitions, thereby strengthening its core capital and improving its capital adequacy ratio Additionally, from 2018 to 2020, MSB Bank repurchased over 1,000 billion dong worth of treasury shares, a move that helps maintain a safe capital adequacy ratio.
Capital growth at MSB Bank primarily stems from increased reserves and undistributed after-tax earnings The bank is committed to enhancing banking quality to foster an optimal working and business environment By increasing capital to support business expansion, MSB Bank aligns with Basel II international standards, thereby strengthening its competitive position in both regional and international markets.
Table 2.4: Structure of MSB bank’s assets in 2017 – 2021
II Balances with the State
III Balances with and loans to other credit institutions 8,602 22,689 20,579 16,978 33,442
V Derivatives and other financial assets - - - - -
VI Loans, advances and finance leases to customers 35,784 47,768 62,708 78,498 99,876
VII Investment securities 44,902 40,696 45,636 55,677 48,226 VIII Capital contribution and other long-term investments 9 10 10 22 10
From MSB Bank’s financial statements
Between 2017 and 2021, MSB experienced a steady increase in total assets with minimal volatility Customer loans remained crucial, constituting over 40% of the bank's total assets, amounting to 64,092 during this period Additionally, investment securities and loans to other credit institutions also represented approximately 40% of total assets, reflecting their profitability This growth was driven by MSB's strategic focus on enhancing its customer loan portfolio.
The remaining items account for a small proportion of MSB bank's total assets:
From 2017 to 2021, cash, gold and silver, and precious stones represented only about 1% of total assets, showing minimal change over the years Due to the non-earning or low-yielding nature of cash and cash equivalents, banks typically minimize their cash holdings and prefer to invest in higher-return assets to enhance asset efficiency and profitability.
Between 2017 and 2021, deposits at the State Bank of Vietnam experienced significant fluctuations, decreasing sharply from 3.10% in 2017 to 1.75% in 2018 This figure peaked at 2.59% in 2019 before gradually declining to only 1.5% by 2021 The reduction in deposits reflects a strategic decision by MSB Bank to maintain a reasonable level of reserves at the State Bank, ensuring compliance with required reserves and facilitating payment activities with both the State Bank and other commercial banks Notably, since 2019, the State Bank of Vietnam has lowered the required reserve ratio for banks, adjusting it from 5% to 3% for demand deposits and those maturing in less than 12 months, impacting all types of credit institutions.
Overall assessment of the MSB bank’s performance through CAMELS
In the period 2017 - 2021, the cаpitаl structure of MSB bаnk is relаtively stаble
MSB Bank has demonstrated continuous growth in its capital sources, with each year's growth rate surpassing the previous one, thereby facilitating the bank's expansion and increasing its overall value The stability of MSB Bank's capital is bolstered by the consistent growth of customer loans, primarily sourced from individual and corporate deposits To enhance customer deposit attraction, the bank has implemented various strategies, including product innovation, branch network expansion, improved customer service, and the diversification of deposit channels through an e-banking system Notably, MSB Bank offers a range of deposit products for individual customers, featuring flexible interest payment methods and a commitment to competitive interest rates Furthermore, the bank primarily relies on its core capital, minimizing dependence on external capital sources, which has allowed it to maintain a relatively healthy capital position despite the economic challenges posed by the COVID-19 pandemic.
In recent years, asset quality has shown improvement, with total credit balance making up the largest share of the asset portfolio MSB Bank is shifting its focus to lending in market 2, which helps mitigate risks during challenging times for businesses To enhance its asset safety, the bank is reducing investments in trading securities and concentrating on investment securities, primarily government bonds This strategy not only ensures a safer asset portfolio but also provides a highly liquid investment channel that meets the bank's liquidity requirements.
The management apparatus of MSB Bank demonstrated remarkable effectiveness, particularly during the challenging period of 2019-2020 when most staff worked from home due to the COVID-19 pandemic Despite these obstacles, MSB Bank achieved significant success in its banking activities by centralizing operations and enhancing group management functions The bank effectively controlled its employee system while working remotely and implemented a suitable bonus scheme based on performance These efforts contributed to MSB Bank being recognized as “Asia's Best Workplace 2021.”
The earnings status of MSB Bank has been steadily improving since the Covid-19 pandemic, evidenced by significant growth in profitability, with ROA and ROE ratios rising to 2.12% and 20.74% respectively in 2021 This improvement is attributed to increased income and effective cost management, particularly the faster growth of interest income compared to mobilization costs Consequently, MSB Bank has recently been recognized among the top performers in the industry.
30 commercial banks in Vietnam had strong development prospects after the covid
MSB Bank's liquidity status aligns with the essential requirements for commercial banks in Vietnam, demonstrating significant long-term improvements The bank has enhanced its deposit coverage ratio and long-term liquidity through a strategic adjustment of asset maturity, ensuring compliance with regulatory liquidity limits.
Despite the effective use of capital at MSB Bank, its potential remains underutilized within Vietnam's banking sector, as evidenced by a gradually increasing CAR ratio that still falls below the industry average Furthermore, MSB Bank heavily relies on its core capital and has not prioritized financial leverage or external financial instruments, which limits the scale of its operations and may contribute to liquidity risk.
MSB Bank's asset portfolio lacks diversification, primarily focusing on securities and tangible assets while neglecting broader investment opportunities unlike other commercial banks in Vietnam The bank faces challenges in customer loans, with credit growth showing a slight slowdown and underwhelming performance compared to its peers Additionally, the increase in non-performing loans (groups 3-5) during this period highlights MSB Bank's ongoing difficulties in managing debt collection, particularly exacerbated by the pandemic.
MSB Bank has experienced significant changes in its personnel structure, particularly among lower-ranking staff, likely due to high expectations that create pressure and demoralization To mitigate the risk of "brain drain," management and the executive board should reevaluate their remuneration, salary, and bonus structures.
Despite positive developments in MSB bank's earnings sources, its market position remains unimpressive The bank's Net Interest Margin (NIM) is below the industry average, indicating that the growth rate of its earning assets has not kept pace with rising costs This highlights MSB's challenges in managing expenses as effectively as other commercial banks in Vietnam.
MSB Bank continues to struggle with managing foreign currency risks, particularly evident from its foreign exchange operations, which were atypical during 2018 and 2020 Despite notable changes in 2021, the bank still encountered challenges and losses related to the USD.
The Covid-19 pandemic has significantly altered the economy, but it is now on a path to recovery To maintain growth, banks must implement effective policies to strengthen their market position With rising demand for business expansion loans and favorable consumer loans, commercial banks are increasingly competing to lower interest rates since early 2022 to attract customers seeking medium and long-term capital.
The intense competition from other banks has significantly hindered MSB's growth Since 2019, the rapid development of digital banking services has allowed banks to broaden their market reach and enhance their brand image Many institutions leverage marketing campaigns and collaborate with celebrities and influencers to effectively engage consumers In contrast, MSB has not prioritized the growth of its social media presence, making it challenging for the bank to compete in this evolving landscape.
The bank prioritizes safe loan sources, which has led to underutilization of medium and long-term loans due to their higher interest rates compared to short-term options However, these loans carry significant risks, necessitating a focused investment in credit management and banking technology to enhance risk assessment and ensure better financial outcomes.
Inefficient interest rate management has led to a rise in interest expenses per dollar of mobilized capital, resulting in suboptimal lending practices Additionally, MSB has struggled with expense management, as evidenced by the increasing proportion of expenses Notably, interest expenses have surged, alongside significant rises in operating and service costs, which have contributed to a decline in the bank's profitability.
Chapter 2 of the thesis introduces general information about MSB Joint-Stock Commercial Bank as well as the process of formation, development and ongoing business activities at the bank The thesis analyzes and evaluates the financial indicators in each component of the CAMELS model, in general, it can be seen to evaluate the performance of MSB bank in the period 2017 - 2021 Thereby giving us a more specific view of the actual situation of operations as well as the causes of bad results so that we can take remedial measures to help the bank operate effectively, safely, and healthily.
SOLUTIONS AND RECOMMENDATIONS FOR
Development orientation of the MSB commercial bank
In the wake of the COVID-19 pandemic, the Vietnamese economy and banking system have experienced significant transformations To align with the economic recovery, MSB Bank is committed to becoming a fully developed institution by enhancing its technological capabilities and leading banking management in Vietnam With a vision to be the most innovative and customer-focused bank in the country, MSB is dedicated to core values such as customer orientation, exceptional effort, honesty, teamwork, and discipline The bank prioritizes delivering innovative solutions to meet customer needs and aims to pursue strategic developments from 2021 to 2025.
MSB Bank is strategically leveraging the retail market's potential by targeting SME customers to enhance risk diversification and performance For large corporate clients, the bank adopts a selective approach, fostering secure collaborations to scale operations effectively It is committed to continuously improving service quality by upgrading distribution facilities, investing in resources, and enhancing human capital Additionally, MSB Bank aims to promote and maximize financial products supported by capital initiatives from the State Bank and financial institutions following the COVID-19 pandemic.
To effectively attract and retain individual customers, the bank is focused on rapidly developing new markets while maintaining its existing market shares Enhancing retail banking services must be coordinated with other banking functions to maximize service effectiveness As the digital banking era unfolds, the bank is committed to improving online services that prioritize time-saving, convenience, and security for customers.
To enhance operational efficiency and customer satisfaction, banks must focus on upgrading their information technology systems and online services A critical challenge remains the security of online information, necessitating continuous efforts to protect both the bank and its customers Additionally, maintaining and upgrading all computer systems and network infrastructure at bank offices is essential for boosting employee productivity and overall performance.
MSB Bank aims to implement the Basel III model effectively, focusing on long-term economic integration globally Additionally, the bank has set strategic goals for the next nine years to enhance its operational framework and strengthen its market position.
By 2030, MSB Bank aims to expand its market share to include large corporate customers, positioning itself as the leading bank in Vietnam's banking sector The bank's strategic focus includes selective and sustainable profitable growth, restructuring its customer and income base, and enhancing service automation for improved quality MSB will prioritize non-credit services, particularly modern payment solutions, while strengthening its financial capacity and operational efficiency Additionally, the bank is committed to improving labor productivity and cost management, ultimately enhancing its reputation and competitive position both domestically and internationally.
Solution affects factors
Increase the scale of core capital:
Equity serves as a crucial measure for addressing the expanding demands of banks A robust capital base indicates that the bank possesses a solid risk management strategy, thereby bolstering its strength and competitiveness in the financial sector Consequently, increasing the bank's capital size is of utmost importance.
Issuing additional shares can enhance a bank's financial self-sufficiency, but it incurs costs and may result in the dilution of existing shareholders' ownership stakes.
Issuing long-term convertible bonds offers a sustainable capital source without immediately altering shareholder ownership This financing option allows interest expenses to be tax-deductible, benefiting corporate income tax calculations However, banks must meticulously assess bond interest rates, as these costs are independent of business performance, potentially leading to financial strain.
Raise capital from retained earnings: This additional internal capital is both safe and keeps the bank from being dependent on capital markets and incurs no capital costs
Pay dividends: in shares to shareholders or not in cash to increase equity capital
Improve the efficiency of the bank's capital mobilization:
In a landscape rich with capital among the population, banks have significant opportunities to enhance capital mobilization However, to thrive in today's competitive market, they must implement targeted strategies to outpace their rivals.
Firstly, bаnks should reseаrch аnd tаke use of аpplying fintech models to innovаte products аnd services, improve competitiveness; Add more utilities аs well аs offer аttractive service fees
To enhance customer satisfaction, it's essential to develop a flexible interest rate structure tailored to individual needs Traditional customers can benefit from adjustable interest rates, while new customers are drawn in by exceptional service quality and a commitment to dedicated support.
To enhance the bank's image and brand, it is essential to promote marketing activities focused on its products through various communication channels frequently accessed by customers, including leaflets, newspapers, the internet, and social media.
To enhance your product offerings, it's essential to actively gather and analyze customer feedback to identify their needs and satisfaction levels, as well as areas of dissatisfaction Additionally, prioritizing an effective after-sales care process is crucial for establishing a positive reputation and image among customers.
Conducting comprehensive competitor research is essential for developing effective business strategies This analysis should focus on product comparisons, pricing structures including interest rates, advertising efforts, banking networks, and customer care policies By understanding these elements, businesses can better position themselves in the market.
Improve the quality of credit activities:
To effectively diversify credit products, it's essential to selectively target scaling customers by offering various forms, terms, and interest rates tailored to a broad audience Implementing preferential programs for loyal customers helps maintain strong relationships while simultaneously expanding connections with new clients.
Enhancing the quality of credit appraisal is essential, requiring close supervision throughout the entire process This includes careful monitoring during pre-lending activities such as customer inquiries and assessments, as well as ongoing evaluation during and after lending, which involves verifying the purpose of capital use and tracking customer repayment periods This vigilance is crucial, as credit activities pose significant risks that can easily escalate if not properly managed.
Enhancing the professional qualifications of credit and appraisal staff is essential for ensuring competence and integrity throughout their roles This commitment begins with building customer relationships and extends to assessing clients, processing disbursement documents, and monitoring post-loan statuses Implementing training programs to elevate skills and maintaining strict ethical standards from recruitment through ongoing evaluations are crucial for fostering a responsible workforce in the banking sector.
Develop banking services, increase the ability to generate profits:
To enhance customer convenience, MSB Bank should broaden its card acceptance network nationwide, ensuring easy payment options for clients Additionally, the development of contactless cards at ATMs will facilitate quicker transaction processing, improving the overall banking experience.
MSB Bank can enhance its account services by offering convenient, safe, and secure procedures, which will help mobilize affordable capital and increase the efficiency of non-cash payments In light of today’s technological advancements, MSB should also focus on diversifying and strengthening its online payment channels, such as e-wallets and integration with online trading platforms.
Human resources play a crucial role in the success of a bank, and MSB Bank must prioritize the training and development of its employees By implementing short-term training programs and collaborating with both domestic and international training centers, MSB Bank can ensure that its staff possess the necessary knowledge and skills These initiatives will significantly enhance the professional capabilities of employees, ultimately contributing to the bank's overall success.
Implementing an open and transparent recruitment policy
Regularly organizing training and education courses
Improve risk management and forecast market movements:
Credit risk management has become increasingly important for MSB Bank, particularly during the rise in bad debts influenced by the COVID-19 pandemic To mitigate these risks, banks must prioritize honesty and accuracy from the initial loan document submission through to appraisal, approval, and decision-making stages Additionally, MSB Bank can improve accountability by decentralizing responsibilities and clearly defining the roles of each level involved in the credit granting process.
Interest rate risk management: Bank needs to regularly adjust the structure of the
Recommendations
Stable and consistent regulatory environments are crucial for safe and effective banking activities, especially in international payments and import-export financing Since banking is interconnected with various industries, regulations in those sectors also impact the banking industry Therefore, the Government must enhance the legal framework to foster the development of banking and overall economic activities.
The socio-economic environment significantly influences banking operations, with a stable macroeconomic setting fostering a favorable business climate for both enterprises and banks To promote this stability, the government must focus on critical issues such as inflation and exchange rates, while also developing long-term policies aimed at sustainable economic growth and reinforcing the legal framework surrounding tax policies.
provide solutions and regulations to prevent cases of unfair competition in the banking system
In a market where banks of varying sizes and operational capacities offer similar products, competition is inevitable To ensure fair competition and uphold equality among banks, it is essential to establish a regulatory agency dedicated to monitoring the safety and soundness of competition This agency would be responsible for detecting unfair practices and safeguarding the interests of all banks Additionally, an appropriate sanctioning mechanism should be implemented to address any acts that infringe upon fair competition and harm the interests of others.
3.3.2 For the state bank of Vietnam
The State Bank of Vietnam must enhance the quality of inspection and supervision for commercial banks by developing effective inspection plans and refining supervision targets Establishing an early warning system to detect banks facing difficulties is crucial, alongside improving the qualifications and ethical standards of inspectors and supervisors.
The State Bank of Vietnam should enhance its guiding role in managing and consulting commercial banks by consistently synthesizing and analyzing market information This will enable the bank to make objective and scientific judgments and forecasts, particularly concerning credit activities By doing so, commercial banks will have a solid foundation for reference and orientation in planning their credit facilities, ensuring sustainable development and mitigating risks.
To foster a stable banking system and support the developing economy, the State Bank of Vietnam must implement consistent policies on interest and exchange rates These policies should optimize the bank's capabilities while providing essential support to economic factors, ultimately maximizing value creation.
The State Bank of Vietnam should implement policies that enable banks to effectively support economic recovery following the pandemic Additionally, it should enhance its role as a facilitator, connecting commercial banks with both domestic and international financial institutions This approach will expand diplomatic relationships and allow commercial banks to access low-interest capital sources, fostering the development of credit relationships.
Chapter III presents essential strategies for MSB Bank's future implementation, derived from a thorough analysis and evaluation of financial indicators within each component of the CAMELS model, while acknowledging the outlined limitations.
Chapter 3 outlines essential strategies for MSB Bank to address its weaknesses in both business operations and internal health assessment To effectively implement these solutions, the bank's management must establish clear directions aimed at fostering development and strengthening the institution, ultimately enhancing its image and competitive position in the market.
In the current integration era, Vietnam's economy and banking system face significant opportunities and challenges, marked by increasing competitive pressure and heightened risk levels To navigate these dynamics, banks must focus on banking analysis indicators to ensure compliance with government regulations and timely decision-making Utilizing the Camels model allows banks to assess their operational status, identify limitations, and understand their competitive position relative to peers, driving motivation for market improvement MSB Bank, in particular, should strive to maintain and enhance its market position by promoting credit growth, managing investments wisely, increasing capital, and effectively managing risks Additionally, MSB Bank must address weaknesses in personnel, technology, and experience while enhancing its domestic and international marketing strategies.
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NHẬN XÉT CỦA GIẢNG VIÊN HƯỚNG DẪN
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