Solutions to improve the efficiency of personal credit at acb hoang dao thuy transaction office

BANKING ACADEMY OF VIETNAM FACULTY OF FOREIGN LANGUAGES - GRADUATION THESIS TOPIC: SOLUTIONS TO IMPROVING THE EFFICIENCY OF PERSONAL CREDIT AT ASIA COMMERCIAL JOINT STOCK BANK – HOANG DAO THUY TRANSACTION OFFICE Student : Vo Le Khanh Huyen Class : K21ATCB Academic year : 2018 -2022 Student ID : 21A7510064 Advisor : Dr Can Thuy Lien Ha Noi, April 2022 Tai ngay!!! Ban co the xoa dong chu nay!!! 17014128952681000000 BANKING ACADEMY OF VIETNAM FACULTY OF FOREIGN LANGUAGES - GRADUATION THESIS TOPIC: SOLUTIONS TO IMPROVING THE EFFICIENCY OF PERSONAL CREDIT AT ASIA COMMERCIAL JOINT STOCK BANK – HOANG DAO THUY TRANSACTION OFFICE Student : Vo Le Khanh Huyen Class : K21ATCB Academic year : 2018 -2022 Student ID : 21A7510064 Advisor : Dr Can Thuy Lien Ha Noi, April 2022 CERTIFICATE OF ORIGINALITY I declare that the thesis “Solutions to improve the efficiency of personal credit at ACB - Hoang Dao Thuy Transaction Office” is the result of my research and has not been copied from any previous research The collected data is true and accurate If there is a copy of other studies found, I take full responsibility Ha Noi, May 2022 Author Vo Le Khanh Huyen i ACKNOWLEDGEMENTS I am inloaned with great thanks to the individuals and organizations that have facilitated, supported, and guided me to complete my graduation thesis I would like to sincerely thank Dr Can Thuy Lien, who directly guided and supported me in the process of making my graduation thesis Thanks to her enthusiastic guidance, I was able to complete the thesis I would like to thank the lecturers of Banking Academy who have always been enthusiastic and dedicated to imparting to students the necessary knowledge and experience so that we can apply them in the process of studying and working I would like to express my sincere thanks to the leadership, specialists, officers, and employees working at Asia Commercial Joint Stock Bank ACB - Hoang Dao Thuy Transaction Office for facilitating, providing data, and teaching me many things about professional knowledge and practical experience Thanks to your support and help, I have gained the necessary information to use in my research and accumulated useful experience for my future work 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 ABSTRACT viii CHAPTER 1: INTRODUCTION 1.1 Introduction .1 1.2 Background of study .2 1.3 Objectives of study 1.4 Significance of study 1.5 Scope and limitation of study .4 1.6 Definition of terms 1.7 Structural organization of study CHAPTER 2: LITERATURE REVIEW 2.1 Literature review 2.2 Theoretical and Conceptual Framework .9 2.2.1 Theoretical Framework 2.2.2 Conceptual Framework 10 CHAPTER 3: RESEARCH METHODOLOGY 11 3.1 Locale of Study 11 3.2 Research Design 11 3.3 Source of Secondary Data 11 3.4 Evaluation of Secondary Data .12 3.5 Categories of Secondary Data for the study .12 3.6 Validity and Reliability 12 CHAPTER 4: FINDINGS AND DISCUSSION 14 4.1 Introduction of ACB and Hoang Dao Thuy Transaction Office 14 4.1.1 Introduction of ACB 14 iii 4.1.2 Introduction of ACB - Hoang Dao Thuy Transaction Office 15 4.2 Business actitvities in the period of 2019-2021 17 4.2.1 Business results .17 4.2.2 Capital mobilization .18 4.2.3 Other actitvities 21 4.3 The current situation of personal credit in the period of 2019-2021 .22 4.3.1 ACB’s regulations on personal credit 22 4.3.2 Analyzing the current situation of the efficiency of personal credit 24 CHAPTER 5: RECOMMENDATION 41 5.1 Summary of findings 41 5.2 Conclusion .41 5.3 Development orientation of personal credit of the bank 41 5.4.Recommendation 43 5.4.1 To the State Bank of Vietnam .43 5.4.2 To ACB’s head office .44 5.4.3 To ACB - Hoang Dao Thuy 45 CONCLUSION 49 REFERENCES iv LIST OF ABBREVIATIONS ACRONYMS WORD’S MEANING ACB Asia Commercial Bank ACB – Hoang Dao Thuy Asia Commercial Bank – Hoang Dao Thuy Transaction Office CIC Credit Information Center CSR Customer Service Representative NPL Non-performing Loan SBV The State Bank of Viet Nam VND Viet Nam Dong v LIST OF TABLES Table Page Table 4.1 Income Statement in the period 2019-2021 17 Table 4.2 Capital mobilization of ACB – Hoang Dao Thuy from 19 2019 to 2021 Table 4.3 Loans at ACB – Hoang Dao Thuy from 2019 to 2021 25 Table 4.4 Personal outstanding loan from 2019 to 2021 28 Table 4.5 Structure of outstanding loan by term from 2019 to 2021 30 Table 4.6 Structure of outstanding loan by loan group from 2019 to 32 2021 Table 4.7 Outstanding loans ratio from 2019 to 2021 34 Table 4.8 NPL ratio from 2019 to 2021 35 Table 4.9 Efficient Capital from 2019 to 2021 36 Table 4.10 Credit turnover from 2019 to 2021 38 Table 4.11 Interest from personal credit in the period 2019 - 2021 39 vi LIST OF FIGURES Figure Page Figure 3.1 Research design process 11 Figure 4.1 Organization diagram of ACB – Hoang Dao Thuy 16 Figure 4.2 Capital structure – Hoang Dao Thuy from 2019 to 2021 20 Figure 4.3 The revenue from card issuance and insurance at ACB – 21 Hoang Dao Thuy in the period 2019 – 2021 Figure 4.4 Loan collection at ACB – Hoang Dao Thuy from 2019 – 2021 vii 27 ABSTRACT The title of the thesis: Solutions to improve the efficiency of personal credit at Asia Commercial Joint-stock Bank - Hoang Dao Thuy Transaction Office Author: Vo Le Khanh Huyen Advisor: Dr Can Thuy Lien Key words: personal credit, solutions, ACB – Hoang Dao Thuy Abstract: Personal credit is an important credit activity of a bank Therefore, the thesis is conducted to provide solutions to improve the efficiency of personal credit First, the study introduces ACB and ACB – Hoang Dao Thuy Then, the business of ACB Hoang Dao Thuy from 2019 to 2021 would be analyzed Next, the personal credit is evaluated through criteria such as loan, loan collection, outstanding loan, NPLs, overdue loans, efficient capital, and credit turnover Some outstanding issues related to the efficiency of personal credit at ACB - Hoang Dao Thuy The research has been pointed out The first problem is the low growth rate of outstanding loans and unstable loan collection The NPLs and overdue loans still exist The efficient capital is still inefficient, and the credit turnover is slow The interests from personal credit tend to decrease Finally, some solutions were proposed to deal with the remaining problems Many practical and innovative solutions were given at the end of the study that can help improve the efficiency of individual credit viii