Credit risk management of vietcombank,masters thesis

Dissertation submitted in partial fulfillment of the Requirement for the MSc in Finance FINANCE DISSERTATION ON Credit risk management at Vietcombank NGUYEN MANH HAI ID No: 17047737 Intake Supervisor: Prof Dr PHAM QUOC KHANH September 2018 ABSTRACT The subject of this research is Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) that the author focuses on the contemporary issues related to credit risk management in the bank, whereby provides possible solutions Vietcombank now is one of four biggest commercial banks in Vietnam, along with Vietinbank, BIDV, and Agribank From the beginning of the business, Vietcombank has significantly contributed to the stability and growth of national economy, played an important role as a key foreign trade bank of Vietnam, and had impact on not only national economy but also international and regional financial community This research aims at answering the question related to relationship between credit growth and level of non-performing loans at VCB By using qualitative analysis of information taken from reliable sources such as company annual reports, journal articles, and academic studies, the research is able to identify the credit situation of VCB, associated with level of bad debt, as well as the method bank uses to manage doubtful loans The findings of the analysis provided the possible explanations of the expanding credit growth accompanied by an escalating increase in the amount of bad debt It might reflect the insufficient knowledge of the staffs, the issue of staff’s morality, the loosening management of the top manager, or the need to make changes in the bank’s credit risk management model There are two models suggested by author with her own academic knowledge for Individual and Corporate model For Individual model, the combination between collateral asset rating and the credit rating is proposed to score the individual credit more exactly In Corporate model, the integration of internal credit rating model and the Basel II approach is taken into consideration to enhance the bank’s own method of protection from credit risk and to strengthen the supervisory and regulatory role of the State Bank of Vietnam for an equally competitive banking market TABLE OF CONTENTS ABSTRACT TABLE OF CONTENTS LISTS OF TABLES AND FIGURES CHAPTER 1: INTRODUCTION 1.1 Problem statement 1.2 Research objectives and questions 1.3 Research methodology 1.4 Research structure CHAPTER 2: THEORETICAL FRAMEWORK 2.1 Commercial banks in Vietnam 2.1.1 Concepts and Functions 2.1.2 Operation of commercial banks in Vietnam 11 2.2 Credit risk in Vietnamese banking system 14 2.2.1 Definition of credit risk 14 2.2.2 Categories of credit risk 15 2.2.3 Credit risk and bad debt 17 2.2.4 Importance of credit risk management at banks 18 2.2.5 Current situation of credit at Vietnamese commercial banks 18 2.2.5.1 Credit culture 18 2.2.5.2 Credit assessment 21 2.3 Credit risk and credit risk management in Vietnamese banking sector 23 2.3.1 Key players in credit market 23 2.3.2 Credit risk management 25 CHAPTER III: RISK MANAGEMENT OF JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM (VIETCOMBANK) 27 3.1 Overview of Vietcombank 27 3.1.1 Business background 27 3.1.2 Financial performance 28 3.1.3 Business strategy 30 3.2 Current credit performance 31 3.3 Credit risk 32 3.3.1 Bad debt and non-performing loans 32 3.3.2 Potential factors causing credit risk 33 3.4 Credit risk management 36 3.4.1 Credit risk management process 36 3.4.2 Credit rating system 37 3.4.3 Internal credit rating 39 3.4.3.1 Individual client’s credit scoring 39 3.4.3.2 Corporate client’s credit scoring 40 3.4.4 3.5 VCB’s credit risk management SWOT analysis 42 Solutions to current credit risk issues 45 3.5.1 Comprehensive individual credit risk management approach 45 3.5.2 Corporate credit risk management approach 46 CHAPTER IV: CONCLUSION AND RECOMMENDATIONS 50 REFERENCES 54 APPENDIX 61 LISTS OF TABLES AND FIGURES Table 1: Commercial banks’ primary and secondary functions (Academic Collective, 2016) 10 Table 2: Types of commercial banks by ownership (Tran et al., 2015) 12 Table 3: Matching corporate priorities and credit cultures (Strischek, 2017) 20 Table 4: Vietcombank’s financial figures from 2012 to 2017 (Vietcombank, 2018) 29 Table 5: Vietcombank’s strategic target for 2018 31 Table 6: Vietcombank’s credit scoring 39 Table 7: VCB’s credit scoring for individual clients (Vo, 2015) 40 Table 8: VCB’s financial scoring group 41 Table 9: VCB’s SWOT Summary 43 Table 10: Comprehensive individual credit risk management approach 45 Table 11: Categorization of collateral scoring 46 Table 12: List of commercial banks in Vietnam categorized by ownership as of 2016 (State Bank of Vietnam, 2016) 64 CHAPTER 1: INTRODUCTION 1.1 Problem statement Together with the development of the Vietnamese economy in the recent years, especially after the 2008-2012 period of economic crisis, the system of commercial banks has also had accelerating and evolving steps in playing the role of key channel to supply significant capital for the economy In the open market, credit offering undeniably is the basic function of any commercial bank as interest income from lending constitutes primary revenues for the banks According to KPMG in its Vietnam Banking Survey 2013, the sector of loans and advances to customer accounts for more than 50% of the banking assets and the revenues collected from credit activities makes up approximately from half to two- thirds of the total revenues Despite the fact that commercial banks expand its operations by diversifying its products, customers or market niche, there is always implication of risks attached to these activities, namely: Credit risks, Market risk, Operational risk (Golin & Delhaize, 2013) Among the above mentioned risks, the credit risk is considered to be the major concern as it forms the largest portion and the most complex interrelationship with other risks Credit risk once it happens would have a significant effect on not only financial losses but also the bank’s reputation which leads to the missing belief of citizens towards the whole system of banks As a result of credit risk’s spreading interrelation; credit risk can be the root for a financial or social crisis The leading sign of credit risk is the bad debt The high bad debt rate means the incapability of the bank to control the credit risk During the conference to summarize the financial results of the first 6-month of 2015, Mr Thanh Nghiem, the Chairman of Vietcombank showed anxiety for the quality of credit and bad debt While the credit growth was 6.52% higher than the average, the certain bad debt was increased by 1.012 billion VND compared to that of the end of 2014 During author’s internship at Vietcombank, this issue was repeatedly mentioned in every meeting which stimulates author’s curiosity to figure out the reasons behind that and to some certain extent provide a workable model of credit risk management 1.2 Research objectives and questions By analyzing the current situation of Vietcombank in the field of credit activities, credit risk and credit risk management, the ultimate goals of the research are to draw the answers for two research questions:  What credit growth and bad debt of Vietcombank reflect?  Is it possible to build up an effective model of credit risk management for Vietcombank? 1.3 Research methodology The research method used throughout the research is the qualitative analysis The research helps to understand the lying problems of credit risk at Vietcombank, and based on the findings, the author suggests to a model serving as a sound base of the decision making of loan granting The primary data related to Vietcombank was obtained through its official website, annual reports Moreover, there were reliable articles on newspapers or reports from reputed financial institutions used to solidify the statements There was an interview conducted with credit expert working in Department of Bad Debt handling at Vietcombank to extend the knowledge of the bank’s credit activities 1.4 Research structure The research is divided into four main chapters It starts with the introduction to give the overall view of the research on where the topic comes from, what author aims to achieve by the end of the research, which tools author used throughout the research Then, the second chapter explains the theoretical framework of credit risks in the banking industry and how commercial banks generally manage the credit risks In this chapter, the overall Vietnamese banking industry is introduced in accordance with the theory The next chapter analyses and evaluates the situation of Vietcombank mainly in the last three years, from 2012 to 2014, and the first 6-month of 2015 concerning the credit activities It also discusses the posed problem of credit growth and high bad debt rate at Vietcombank The third chapter presents the suggested idea of the author to have a working credit risk management Last but not least, the brief conclusion is given in the last chapter to summarize the findings of the research CHAPTER 2: THEORETICAL FRAMEWORK 2.1 Commercial banks in Vietnam 2.1.1 Concepts and Functions Commercial banks are different from other banks based on their services provided to the economy According to Leaf (1927), banks become commerical banks when they deal in money and credit for profit In other words, commercial banks are financial institutions that take the deposits from the public for safety and lend those deposits to person/organization who need the funds (Gobat, 2012) In the United States, a commerical bank is defined to be an institution that obtains federally insured deposit, paying interest to depositors, and at the same time, makes residental and commerical loans, underwrites securities such as U.S Tresuries, commerical paper, and bonds (Getter, 2016) Meanwhile, in Asian countries, commerical banks often provide various services such as traditional banking services (lending and depositing), commercial banking, investment banking, insurance, and asset management (Laeven, 2005) Despite being defined differently among countries, commercial banks are categorized into two main functions, namely primary and secondary functions (Nguyen, 2016) Sepcifically, the activities of commercial banks falling into each function group are presented in the following: COMMERCIAL BANKS Primary functions • Accepting deposits from fund savers (current • • Secondary functions account deposits, • fixed Discounting bills of exchange or bundles deposits, and saving account deposits) • Overdraft facility Making loans and advances in form of • Agency functions: transferring funds, cash credit, demand loans, overdraft, collecting funds, making payments of and short-term loans tax, insurance and bills as per the Investment: in securities such as direction of customers, purchasing and Government securities, other approved selling securities, collecting dividends, securities, and other securities etc • Performing general utility services such as locker facility and underwriting securities Table 1: Commercial banks’ primary and secondary functions (Academic Collective, 2016) Based on their characteristics and functions, it cannot be denied that commercial banks have significantly important role to not only national banking system but also the whole economy According to Olokoyo (2011), commercial banks provide the biggest capital savings, mobilization and financial allocation to the economy, contributing to the economic growth and development To be specific, the importance of commercial banks is presented in three 10 CHAPTER IV: CONCLUSION AND RECOMMENDATIONS Providing credit is one of the most important functions of commercial bank which helps to circulate the capital in the market in the macro-economic scale, to fund the operating activities of firms and improve living condition of households in the micro-economic scale Similarly, the credit activities play the crucial role towards the survival of the bank as its assets account for a significant portion in the balance sheet and it generates enormous income for the banks Therefore, credit risk is the most concerned issue for managers as it influences many areas of the bank related to the severe and unrecoverable financial losses from the event of customer’s default, the impairment of bank’s reputation To effectively enhance the quality of credit, every bank should actively prevent itself from losses resulted from risk of credit activities by a good risk management model The advantages of possessing a working credit risk management model are undeniable; however, many banks are struggling to find a suitable model to fit in their structure or the market they are operating in Vietnamese economy since the date of opening the door internationally has seen a fast movement of the banking industry Many banks were established and have expanded their presence geographically to serve a wide range of customer groups with different background As a result, there was a growing pace of the credit which consequently implies the threats of the credit risk reflected in the high level of bad debt In recent years, the bad debt rates were at the unfavorable percentages which were more than 3% SBV has showed great concern for this problem and taken many solutions to control the rate of under 3% by the end of 2015 The central bank founded VAMC to purchase the bad debt from commercial banks to provide them with opportunities to make clearance of problem loans in the financial report and to get funded from SBV The support from SBV has assisted many banks in overcoming the financial distresses 50 Nevertheless, in the long run, the banks are in need of having better credit policies, building a functioning credit risk management model to minimize the impact of credit risks Vietcombank is one of the competitive players in Vietnam banking sector Together with the development of overall Vietnamese economy, Vietcombank is now having a good financial position and a sustainable growth Nonetheless, compared to other key competitors, Vietcombank is one step behind in term of credit risk relative to its loan portfolio It is worth mentioning that while the credit growth is higher than its competitors, the bad debt rate, especially NPL ratio is considerably greater The purpose of the research is to handle two related questions faced by Vietcombank which are the questioning relationship between credit growth and high level of bad debt rate, and then a possibility to build a working model to effectively control the credit risk After examining current situation of credit activities and the handling of bad debt at Vietcombank, the author explains the implication of what fast credit growth and high bad debt rate reflect The aspect of staffs is brought into the table The pressure to raise a designated quota of loans for every credit employee may drive the deterioration of credit quality to meet the sales or the lack of necessary training from bank towards its staffs leads to the incompetence to understand and follow Vietcombank’s credit policies or credit culture Moreover, the top managers should be partly to blame for The loosening management control by chance creates the loophole in the practice of credit risk management Other major implication is whether it is time for Vietcombank to make changes to its credit risk management system to bring down the level of bad debt while maintaining a sustainable credit growth 51 The author takes a further step to investigate how the current credit risk management model works in Vietcombank The bank has equipped itself with the internal credit rating model divided separately into two sub-models for group of individual customers, and corporate entities Both of the models have utilized the quantitative and qualitative analysis to score customers and their credit The credit rating letter of customers provides the general view of their creditworthiness Based on the observation, the author indicates the key weakness of each model which are the non-mentioning collateral assets in the Individual model and the blurring connection between the credit risk and the capital adequacy of bank to perform responsibilities towards its other customers in case of default of a specific company in the Corporate model These weaknesses are the key factors leading to a more completed credit risk management proposed by the author For individual credit risk management model, the collateral asset is suggested to be rated based on the value of its relative to the loan Together with the letter of credit rating, there is a matrix to combine both of them for final decision on whether the loan can be granted to the customer In Corporate credit risk management model, collateral security of customer is emphasized once again but in a different angle To get a closer step towards the international standards, SBV has encouraged Vietcombank to implement the Basel II supervisory and regulatory approach on having a minimum capital requirement expressed in CAR (%) to protect itself from credit risk This ratio implies the capital charge to the bank in making the loan with the collateral- based credit risk weighted on the value of the loan In other words, the bank needs to hold an adequate capital to hedge against the credit risk; in case of default, this capital will be used to fund other bank’s activities without having an effect on its existing customers The CAR is required to be at least 9% by SBV The suggested Corporate credit risk management model is an integration of 52 Corporate internal credit rating model and Basel II supervisory and regulatory approach While the Corporate model provides the evaluation of corporate customers, international Basel II approach with adjustments made for Vietnamese banking industry the enhances Vietcombank’s own protection method based on the collateral assets in the event of customer’s default and strengthens the supervisory roles of SBV to discipline the players in an equally competitive banking market The Corporate credit risk management is believed to make sure that all the bank’s credit activities, policies are transparent and compliant with the SBV’s regulations To conclude, there are several respects that Vietcombank needs to successfully undertake Firstly, the required CAR poses the necessary combination of capital raise and the wise use of it so that the capital is not tightened to keep the 9% ratio and there is not a heavy burden to pay dividends from shareholders Secondly, it is important to communicate carefully the credit risk management model, policies to the bank’s employees to minimize the frauds which are said to come from policy misunderstanding Lastly, a huge investment in information system is needed to build a detailed customer base for a better credit rating model When the bank fruitfully achieves above respects with a good credit risk management model, undeniably it is step by step materializing the plan of a leading bank not only nationally but also regionally 53 REFERENCES Academic Collective, 2016 Applied Monetary Economics Adamawa State: Modibbo Adama University of Technology Aksel, K.H., 2017 Organizing a Financial Institution to Deliver Enterprise-Wide Risk Management PwC Akter, R & Roy, J.K., 2017 The Impacts of Non-Performing Loan on Profitability: An Empirical Study on Banking Sector of Dhaka Stock Exchange International Journal of Economics and Finance, 9(3), pp.126-32 Alonso, R., Dessein, W & Matouschek, N., 2008 When Does Coordination Require Centralization? American Economic Review, 98(1), pp.145-79 Andrews, R., Boyne, G.A., Law, J & Walker, R.M., 2009 Centralization, Organizational Strategy, and Public Service Performance Journal Of Public Administration Research & Theory, 19(1), pp.57-80 Baek, S., Cha, S.Y & Lee, N., 2015 The effect of the diversification in Korea: impact on profit and risk Journal of Accounting and Finance, 15(2), pp.51-69 Bandyopadhyay, A., 2016 Managing Portfolio Credit Risk in Banks 1st ed Cambridge University Press Bank for International Settlements , 2000 Principles for the Management of Credit Risk Bank for International Settlements 54 Barr, A & McWhorter, R.P., 1992 Understanding and Strengthening Bank Credit Culture Journal of Commercial Lending, 74(8) Boffey, R & Robson, G.N., 1995 Bank Credit Risk Management Managerial Finance, 21(1), pp.66-78 Brown, K & Moles, P., 2016 Credit Risk Management Heriot-Watt University CafeF, 2018 Thứ hạng tổng tài sản ngân hàng sao? [Online] Available at: http://cafef.vn/thu-hang-ve-tong-tai-san-cua-cac-ngan-hang-hien-nay-ra-sao- 20180415145623003.chn [Accessed 20 September 2018] Colquitt, J., 2007 Credit Risk Management How to Avoid Lending Disasters and Maximise Earnings 3rd ed McGraw Hill Comptroller of the Currency, 1998 Loan Portfolio Management Comptroller of the Currency (OCC) Figlewski, S., Frydman, H & Liang, W., 2012 Modeling the Effect of Macroeconomic Factors on Corporate Default and Credit Rating Transitions International Review Economics and Finance, 21, pp 87-105 Getter, D.E., 2016 Overview of Commercial (Depository) Banking and Industry Conditions Congressional Research Service Gobat, J., 2012 "What is a bank?" Finance & Development, 49(1), pp.38-39 Golin, J & Delhaize, P., 2013 The Bank Credit Analysis Handbook: A guide for Analysts, Bankers and Investors John Wiley & Sons 55 Grippa, P & Gornicka, L., 2016 Measuring Concentration Risk - A Partial Portfolio Approach International Monetary Fund Guseva, A & Rona-Tas, A., 2014 Plastic Money: Constructing Markets for Credit Cards in Eight Postcommunist Countries Stanford University Press Haralambie, M.-M & Ionescu, B.Ş., 2016 Corporate qualitative and quantitative assessment from credit risk perspective Audit Financiar, 14(8/140), pp.868-74 Hull, J., 2010 Risk management and Financial Institutions 2nd ed Boston: Pearson Education International Trade Administration, 2018 Vietnam - Banking Systems [Online] Available at: https://www.export.gov/article?id=Vietnam-Banking-Systems [Accessed 13 September 2018] Joseph, C., 2013 Advanced Credit Risk Analysis and Management 1st ed John Wiley & Sons, Inc Koch, T.W & MacDonald, S.S., 2009 Bank Management 7th ed South-Western College Pub Konovalova, N., Kristovska, I & Kudinska, M., 2016 Credit risk management in Commercial banks Polish Journal of Management Studies, 13(2), pp.90-100 KPMG, 2017 Vietnam Market Entry: Seize the opportunity KPMG Laeven, L., 2005 Banking Sector Performance in East Asian Countries: The Effects of Competition, Diversification, and Ownership Washington, D.C: World Bank Leaf, W., 1927 Banking 2nd ed California: H Holt 56 Lindè, A & Wallgren, E., 2012 The effects of organizational structure and rules on banks risk management - A comparative case study of three major banks in Sweden Umeå School of Business and Economics Martin, C., Puri, M & Ufier, A., 2018 Deposit Inflows and Outflows in Failing Banks: The Role of Deposit Insurance Federal Deposit Insurance Corporation Matica Technologies, 2016 Vietcombank Invests in Matica for High Performance Card Personalization Matica Technologies McKinley, J & Barrickman, J., 1994 Strategic Credit Risk Management Philadelphia: Robert Morris Associates Mehta, D & Fung, H.-G., 2008 International Bank Management John Wiley & Sons Muhamet, A & Arbana, S., 2016 The effect of credit risk management on banks' profitability in Kosovo European Journal of Economic Studies, 18(4), pp.492-515 Naceur, S.B & Omran, M., 2011 The Effects of Bank Regulations, Competition and Financial Reforms on Banks Performance Emerging Markets Review, 12, pp.1-20 Nguyen, L., 2016 Credit risk control for loan products in commercial banks Case: Bank for Investment and Development of Vietnam University of Applied Sciences Olokoyo, F.O., 2011 Determinants of Commercial Banks’ Lending Behavior in Nigeria International Journal of Financial Research, 2(2), pp.61-72 Papin, T., 2014 Pricing of Corporate Loan : Credit Risk and Liquidity cost Université Paris Dauphine 57 Rose, P., 2002 Commercial Bank Management 5th ed Mc Graw-Hill/Irwin Sironi, A & Resti, A., 2005 Recovery risk: the next challenge in credit risk management London: Risk Books Smith, D.T & Butters, J.K., 1949 Taxable and Business Income National Bureau of Economic Research Spjut, R.J., 2018 Transaction Risk: A Legal Guide to Contractual Management Strategies ABA Book Publishing State Bank of Vietnam, 2016 State-owned Commercial Banks [Online] Available at: https://www.sbv.gov.vn/webcenter/portal/en/home/fm/socins/bks/cbks/socb?dDocName=CNTH WEBAP01162394768&_afrLoop=611663408564406#%40%3F_afrLoop%3D61166340856440 6%26centerWidth%3D80%2525%26dDocName%3DCNTHWEBAP01162394768%26leftWidth %3D20%2525%26rightWidth%3D [Accessed 13 September 2018] Strischek, D., 2002 Credit culture Credit Considerations Strischek, D., 2017 Credit culture: four types of credit culture BankersHub Tran, B.T., Ong, B & Weldon, S., 2015 Vietnam Banking Industry Report Duxton Asset Management Van Greuning, H & Bratanovic, S.B., 2009 Analyzing banking risk: a framework for assessing corporate governance and risk management World Bank Publications Vietcombank, 2018 About us [Online] Available at: https://www.vietcombank.com.vn/About/General.aspx?lang=en [Accessed 20 September 2018] 58 Vietcombank, 2018 Annual report 2017 Vietcombank Vietcombank, 2018 Company Presentation [Online] Available at: https://www.vietcombank.com.vn/upload/2018/05/11/1Q_2018_Financial_Results.pdf?1 [Accessed 20 September 2018] Vietcombank, 2018 Milestones [Online] Available at: https://www.vietcombank.com.vn/About/Milestones.aspx?lang=en [Accessed 20 September 2018] Vietnambiz, 2017 tháng đầu năm, tăng trưởng tín dụng có đồng nghĩa tỷ lệ nợ xấu tăng cao? [Online] Available at: https://vietnambiz.vn/6-thang-dau-nam-tang-truong-tin-dung-co-dongnghia-ty-le-no-xau-tang-cao-27921.html [Accessed 20 September 2018] Vietnambiz, 2017 tháng đầu năm, số ngân hàng có tỷ lệ nợ xấu tăng chiếm áp đảo [Online] Available at: https://vietnambiz.vn/9-thang-dau-nam-so-ngan-hang-co-ty-le-no-xau-tang-chiemap-dao-36014.html [Accessed 20 September 2018] Vo, H.M., 2015 Credit risk management in Banking Industry Tampere Univesity of Applied Sciences Vuong, Q.-H., 2010 Financial Markets in Vietnam's Transition Economy VDM Verlag Waqas, M., Fatima, N., Khan, A & Arif, M., 2017 Determinants of Non-performing Loans: A Comparative Study of Pakistan, India, and Bangladesh Finance & Banking Studies, 6(1), pp.5168 Weldon, S., Tran, B.T & Ong, B., 2015 Vietnam Banking Industry Report Duxton Asset Management 59 60 APPENDIX Appendix: List of commercial banks in Vietnam categorized by ownership Listed No Charter capital Number of Commercial bank /Unlisted (VND Billion) branches Unlisted 29,003.6 943 Listed 37,234 149 Listed 31,481 180 Listed 26,650 500 Listed 9,377 81 5,319 30 3,150 12 3,000 27 5,000 22 State-owned Commercial banks (SOCBs) Vietnam Bank for Agriculture and Rural Development (Agribank) Vietnam Joint Stock Commercial Bank of Industry and Trade (Vietinbank) Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) Joint Stock Commercial Bank for Foreign Trade of Vietnam (VCB) Joint Stock Commercial Banks (JSCBs) Asia Commercial Joint Stock Bank – ACB An Binh Commercial Joint Stock Bank – Unlisted ABB Bao Viet Joint Stock commercial Bank Unlisted Viet Capital Commercial Joint Stock Bank - Unlisted Viet Capital Bank BAC A Commercial Joint Stock Bank - Bac Unlisted 61 A Bank LienViet Commercial Joint Stock Bank – Unlisted 6,460 61 9,000 33 5,000 56 5,466 39 Unlisted 11,750 45 Unlisted 3,000 28 Listed 8,878 62 3,021 23 4,000 34 17,127 71 5,644 50 3,010 20 Lienviet Post Bank - LPB Public Vietnam Bank - PVcomBank Unlisted DONG A Commercial Joint Stock Bank - Unlisted EAB Southeast Asia Commercial Joint Stock Unlisted Bank – Seabank The Maritime Commercial Joint Stock Bank 10 – MSB Kien Long Commercial Joint Stock Bank 11 KLB Viet Nam Technological and Commercial 12 Joint Stock Bank - TECHCOMBANK Nam A Commercial Joint Stock Bank - Unlisted 13 NAM A BANK Orient Commercial Joint Stock Bank – Unlisted 14 OCB Military Commercial Joint Stock Bank – 15 Listed MB Vietnam International Commercial Joint Unlisted 16 Stock Bank - VIB 17 National Citizen bank - NCB Unlisted 62 Sai Gon Commercial Joint Stock Bank - Unlisted 18 14,295 50 Unlisted 3,080 33 Listed 11,196 55 Listed 18,852 109 5,842 26 3,500 21 9,181 50 3,249 11 3,000 16 12,355 42 8,100 50 37,234 149 SCB 19 Saigon Bank for Industry & Trade – SGB Saigon-Hanoi Commercial Joint Stock Bank 20 - SHB Saigon Thuong Tin Commercial Joint Stock 21 Bank - Sacombank TienPhong Commercial Joint Stock Bank - Unlisted 22 TPB Viet A Commercial Joint Stock Bank - Unlisted 23 VIETA Bank Vietnam Commercial Joint Stock Bank for Unlisted 24 Private Enterprise - VPBank Viet Nam Thuong Tin Commercial Joint Unlisted 25 Stock Bank - Vietbank Petrolimex Group Commercial Joint Stock Unlisted 26 Bank - PGBank Viet nam Export Import Commercial Joint 27 Listed Stock - Eximbank Ho Chi Minh city Development Joint Stock Unlisted 28 Commercial Bank - HDBank Vietnam Joint Stock Commercial Bank of Unlisted 29 Industry and Trade 63 Joint Stock Commercial Bank for Unlisted 30 34,187.2 190 35,977 101 Investment and Development of Vietnam Joint Stock Commercial Bank for Foreign Unlisted 31 Trade of Vietnam - VCB Wholly foreign owned banks (WFOBs) Hong Leong Bank Vietnam Limited - Unlisted 3,000 HLBVN Hongkong – Shanghai Bank Vietnam Unlisted 7,528 Limited - HSBC Shinhan Bank Vietnam Limited - SHBVN Standard Chartered Bank Unlisted 4,547 (Vietnam) Unlisted 3,080 Limited- SCBVL United Overseas Bank Limited (UOB) Unlisted 3,000 Public Bank Berhad (PBB) Unlisted 3,000 Woori Bank Unlisted 3,000 ANZ Bank Unlisted 3,200 Table 12: List of commercial banks in Vietnam categorized by ownership as of 2016 (State Bank of Vietnam, 2016) 64