Evaluating the status of casa mobilization at asia commercial joint stock bank

BANKING ACADEMY OF VIETNAM FACULTY OF FOREIGN LANGUAGES _ GRADUATION THESIS TOPIC: EVALUATING THE STATUS OF CASA MOBILIZATION AT ASIA COMMERCIAL JOINT STOCK BANK Student : Pham Anh Khoa Class : K21ATCB Academic year : 2018 - 2022 Student ID : 21A7510074 Advisor : Dr Can Thuy Lien Hanoi, May 2022 Tai ngay!!! Ban co the xoa dong chu nay!!! 17014126226201000000 CERTIFICATE OF ORIGINALITY I hereby declare that this graduation thesis has been written truthfully and without deception This thesis has been made by myself with the support of the advisor, without copying, the referenced materials are clearly cited, ensuring respect for copyright as well as the research of others I am fully responsible for this thesis and this statement Author Pham Anh Khoa i ACKNOWLEDGEMENTS First and foremost, I would like to express my sincerest thanks to the Faculty of Foreign Languages, Banking Academy of Vietnam, where I have been learning for years During that time, the faculty has always created the best conditions for me and other students in the process of learning and self-training Secondly, I would like to express the deepest and sincerest gratitude and apologies to Dr Can Thuy Lien, the advisor with profound knowledge and always patient with me During the thesis work, she was always dedicated to guiding us, correcting each of the smallest mistakes despite her busy work Her guidance helped me complete the thesis and gain many precious experiences In addition, I would like to thank my granny, my parents as well as my close friends for their supports and encouragements throughout my research Above all, I wish I could send my thanks to my grandfathers in the afterworld They gave me great motivation to complete the graduation thesis ii TABLE OF CONTENTS CERTIFICATE OF ORIGINALITY i ACKNOWLEDGEMENTS ii TABLE OF CONTENTS iii LIST OF ABBREVIATIONS v LIST OF TABLES vi LIST OF FIGURES .vii LIST OF APPENDICES viii ABSTRACT ix CHAPTER 1: INTRODUCTION 1.1 Introduction 1.2 Background of the study 1.3 Objectives of the study 1.4 Significance of the study 1.5 Scope and limitation of the study 1.6 Definition of terms CHAPTER 2: LITERATURE REVIEW 2.1 Literature review 2.2 Theoretical and Conceptual Framework 2.2.1 Theoretical Framework 2.2.2 Conceptual Framework 12 CHAPTER 3: RESEARCH METHODOLOGY 13 3.1 Locale of the Study 13 3.2 Research Design 13 3.3 Data Gathering Procedure 13 3.4 Sources of Secondary Data 14 3.5 Categories of Secondary Data for the study 14 3.6 Validity and Reliability 14 3.7 Self Reflection on Secondary Data Collection Analysis 15 CHAPTER 4: FINDINGS AND DISCUSSIONS 16 iii 4.1 Business operations at ACB in the period 2019 – 2021 16 4.1.1 Total deposits of the customers 16 4.1.2 Total outstanding loans 17 4.1.3 Business results 21 4.2 Assessing the CASA mobilization at ACB 23 4.2.1 CASA mobilization and CASA growth rate 23 4.2.2 CASA mobilization in terms of type of depositors 29 4.2.3 CASA mobilization in terms of type of currencies 30 4.3 Comparing CASA to other sources of capital mobilization 32 4.3.1 The ratio of CASA to total deposits 32 4.3.2 The ratio of CASA to total mobilization 34 4.3.3 CASA’s cost of fund compared to other channels 35 4.4 Factors affecting CASA mobilization 37 4.4.1 CASA’s interest rate 37 4.4.2 Payment accounts’ fees 39 4.4.3 Payment accounts utilities 41 4.4.4 Bank image 43 CHAPTER 5: CONCLUSION AND RECOMMENDATION 46 5.1 Summary of findings 46 5.2 Conclusion 46 5.3 Recommendation 47 5.3.1 To the State Bank of Vietnam 47 5.3.2 To ACB 49 REFERENCES APPENDIX iv LIST OF ABBREVIATIONS ACRONYM MEANING ACB Asia Commercial Joint Stock Bank ATM Automated Teller Machine BIDV Joint Stock Commercial Bank for Investment and Development of Vietnam CASA Current Account Savings Account CIC Credit Information Center eKYC Electronic Know Your Customer MB Military Commercial Joint Stock Bank SMEs Small and Medium Enterprises TCB Vietnam Technological and Commercial Joint Stock Bank USD United States dollar VIB Vietnam International Bank VND Vietnam dong VPB Vietnam Prosperity Joint Stock Commercial Bank v LIST OF TABLES TABLE PAGE Table 4.1: Personal and corporate loans of ACB in 2021 19 Table 4.2: Business results of ACB from 2019 to 2021 21 Table 4.3: CASA mobilized at ACB in 2019, 2020 and 2021 23 Table 4.4: CASA mobilized based on type of depositors 29 Table 4.5: Cost of mobilization sources 35 Table 4.6: CASA interest rate of ACB in 2022 37 Table 4.7: Some basic fees of ACB payment accounts 39 vi LIST OF FIGURES FIGURE PAGE Figure 4.1: Total deposits of the customers at ACB from 2019 to 2021 16 Figure 4.2: Total outstanding loans of ACB from 2019 to 2021 17 Figure 4.3: Outstanding loans and bad debt rate of nine commercial banks in 2021 18 Figure 4.4: CASA growth rate of ACB, MB, TCB, VPB, TPB, VIB in 2020 and 2021 25 Figure 4.5: CASA mobilized at ACB, MB, TCB, VPB, TPB, VIB in 2019, 2020 and 2021 26 Figure 4.6: CASA mobilized based on type of currencies 31 Figure 4.7: The ratio of CASA to total deposits 32 Figure 4.8: The ratio of CASA to total mobilization in 2019, 2020 and 2021 34 vii LIST OF APPENDICES Appendix 2020 ACB Consolidated Business Results Report Appendix 2021 ACB Consolidated Business Results Report Appendix ACB payment cards fees viii ABSTRACT The title of the thesis: Evaluating the Status of CASA mobilization at ACB Author: Pham Anh Khoa, student of the Faculty of Foreign Languages, Banking Academy of Vietnam Advisor: Dr Can Thuy Lien, the Dean of the Faculty of Foreign Languages, Banking Academy of Vietnam Key words: CASA mobilization, solutions, ACB Abstract: CASA is gradually becoming an important source of capital for commercial banks, especially large and reputable banks Therefore, the study was conducted to provide solutions to improve the efficiency of CASA mobilization at ACB Firstly, the thesis presented an overview of ACB's business activities in the period of 2019-2021, including profit, depositing and lending activities Afterwards, ACB's CASA mobilization would be evaluated based on the amount of CASA mobilized and the growth rate of CASA over the three years In addition, corresponding figures from other banks were also presented and comparisons would be made Next, the advantages and disadvantages of CASA compared to other sources of fund were clarified In addition, the factors affecting the efficiency of CASA mobilization were determined, thereby partly showing the strengths and weaknesses of ACB in mobilizing CASA Finally, practical solutions not only to ACB, but also to the State Bank of Vietnam were proposed to solve the remaining difficulties Through the study, the limitations of ACB in mobilizing CASA were pointed out, including many errors encountered in ACB's digital banking application, not many utilities integrated on payment accounts, some high fees, complaints of the customers about staff’s service However, many practical solutions were suggested to solve these limitations, which could help to improve the efficiency of ACB's CASA mobilization ix