A survey on credit operations in saigon hanoi commercial joint stock bank hanoi branch from 2013 to 2015,graduation thesis

z Graduation thesis – Banking Academy STATE BANK OF VIETNAM BANKING ACADEMY FOREIGN LANGUAGE FACULTY  GRADUATION THESIS A SURVEY ON CREDIT OPERATIONS IN SAIGON – HANOI COMMERCIAL JOINT STOCK BANK HANOI BRANCH FROM 2013 TO 2015 Supervisor : M.A Tran Thi Thu Thuy Student name : Le Thu Trang Class : K15 ATCD Faculty : Foreign Language Student code : Hanoi 2016 i 15A7510235 Graduation thesis – Banking Academy DECLARATION I declare that this graduation thesis named “A SURVEY ON CREDIT OPERATIONS IN SAIGON – HANOI COMMERCIAL JOINT STOCK BANK FROM 2013 TO 2015” is the product of my own work which has not been submitted for my degree or examination in any other university All the sources I have used have been specified as completed references i Graduation thesis – Banking Academy ACKNOWLEDGEMENTS After several months of hard work, my graduation has been completed Now it is high time to thank everyone warmly who provided their kind assistance to me First of all, I would like to thank my supervior MA Tran Thi Thu Thuy – Lecturer of Banking Faculty for her guidance and suggestion through my work I am grateful to her for providing helpful knowledge in area of bank credit and of English for finance and banking In addition, the same appreciation are given to the officials of Saigon – Hanoi commercial joint stock bank – Hanoi Branch for facilitating me a lot during my internship I also would like to express my thanks to all teachers at Banking Academy, especially teachers of Faculty of Foreign Languages, Banking Faculty and Financial Faculty for giving their valuable lectures during the time I have studied there Without them, my graduation thesis would not be finished Last but not least, the dearest appreciations are directed to my family and friends, for giving me great support and help during these months Special thanks go to my mother and father for being patient and supportive to their sweet daughter ii Graduation thesis – Banking Academy TABLE OF CONTENTS CHAPTER I: INTRODUCTION 1.1 Rationale of the study .1 1.2 Aims of the study 1.3 Scope of the study 1.4 RESEARch question 1.5 RESEARCH mETHODOLOGY 1.5.1 Research process 1.5.2 Support instruments in research process 1.5.2.1 The sources of data collection 1.5.2.2 The indicators for measuring the performance of credit activities CHAPTER II:THEORETICAL FRAMEWORK ON CREDIT OPERATIONS IN SHB HANOI .3 2.1 Basic knowledge of commercial banks 2.1.1 Definition of commercial banks 2.1.2 Types of commercial banks 2.1.2.1 State-owned Commercial Banks .3 2.1.2.2 Joint Stock Commercial Banks 2.1.2.3 Foreign banks 2.1.3 Operations of commercial banks 2.1.3.1 Mobilising Savings for Capital Formation: .4 2.1.3.2 Financing economy 2.1.3.3 Financing Trade .5 2.1.3.4 Financing Agriculture 2.1.3.5 Help in Monetary Policy 2.2 Credit operations in commercial banks .6 2.2.1 Background knowledge of credit in commercial banks .6 2.2.1.1 Definition of credit 2.2.1.2 Classification of credit .6 2.2.1.3 Functions of credit 2.2.1.4 Roles of credit iii Graduation thesis – Banking Academy 2.2.1.5 Basic knowlege of loans in commercial banks 2.2.2 Background knowledge of credit operations in commercial banks 10 2.2.2.1 The credit activities of commercial banks 10 2.2.2.2 Several indicators of evaluating credit operations in commercial bank 12 CHAPTER III: RESEARCH METHODOLOGY 13 3.1 Methods of study 13 3.2 Subjects of study 13 3.2.1 Operations of credit department of SHB Hanoi 13 3.2.2 Structure of credit department in SHB Hanoi 14 CHAPTER IV:ANALYSIS OF CREDIT ACTIVITIES IN SAIGON – HANOI COMMERCIAL JOINT STOCK BANK _ HANOI BRANCH .15 FROM 2013 TO 2015 15 4.1 Analysis of mobilizing situation over the period .15 4.1.1 The situation of the bank’s capital 15 4.1.2 The situation of capital mobilization 17 4.2 Analysis of The situtation of lending activities under credit terms over the period 21 4.2.1 The situation of total loans over the period 21 4.2.2 The situation of debt collection over the period 26 4.2.3 The situation of outstanding loans over the period 31 4.2.4 The situation of non-performing loans over the period .35 4.3 Evaluation of credit activities by using indicators in SHB Hanoi over the period 40 4.3.1 The loans-to-deposits ratio (LTD) 40 4.3.2 The loans-to-assets ratio 41 4.3.3 Credit risk ratio 41 4.3.4 Debt collection ratio .41 CHAPTER V: FINDINGS OF CREDIT ACTIVITIES IN SHB HANOI FROM 2013 TO 2015 .43 5.1 Achievement and limitation of credit activities 43 iv Graduation thesis – Banking Academy 5.1.1 Achievement of credit activities in SHB Hanoi 43 5.1.2 Limitation of credit activities in SHB Hanoi 43 5.1.2.1 With the capital mobilization and banking services 43 5.1.2.2 With the lending activities: .44 5.1.2.3 With the treatment and recovery of debts: .44 5.2 Suggestions for improving credit activities in SHB Hanoi .44 5.2.1 With the capital mobilization and banking services 45 5.2.2 With the lending activities 46 5.2.3 With the treatment and recovery of debts: 47 CHAPTER VI: RECOMMENDATIONS AND CONCLUSION 49 6.1 Recommendations .49 6.1.1 With government 49 6.1.2 With the State Bank of Vietnam 49 6.1.3 With SHB Hanoi 50 6.2 Conclusion .50 REFERENCES 52 v Graduation thesis – Banking Academy LIST OF TABLES Table 4.1: Capital situation of SHB over the period 15 Table 4.2: Mobilization situation in SHB Hanoi over the period 19 Table 4.3: The situation of total loans under credit terms over the period 23 Table 4.4: The situation of debt colletion over the period 28 Table 4.5: The situation of outstanding loans over the period 32 Table 4.6: The situation of groups of loans over the period 36 Table 4.7: The situation of non-performing loans under credit term over the period 37 Table 4.8: Indicators of evaluating credit operation in SHB over the period .40 vi Graduation thesis – Banking Academy LIST OF GRAPHS Graph 4.1: The structure of total loans under credit terms over the period 24 Graph 4.2: The structure of debt collection under credit terms over the period 29 Graph 4.3: The structure of outstanding loans under credit term over the period 33 Graph 4.4: The structure of non-performing loans under credit term over the period 38 vii Graduation thesis – Banking Academy LIST OF ABBREVIATIONS SHB Hanoi Saigon – Hanoi commercial joint stock bank _ Hanoi branch SOEs The State-Owned Enterprises SMEs Medium and small enterprises SOCBs State-owned Commercial Banks JSCBs Joint Stock Commercial Banks NPLs Non-performing loans Dept Department ATM Automated Teller Machine viii Graduation thesis - Banking Academy ABSTRACT In this research analysis, the subject of credit operations has been examined at credit department in Saigon – Hanoi commercial joint stock bank – Hanoi Branch It aims to analyze the situation of credit operation in Hanoi branch of this bank from 2013 to 2015 based on the data provided which was mainly exploited to measure the credit performance of SHB Hanoi Then, achievement and limitation are found before providing several suggestions and recommendations for enhancing and promoting the efficiency of credit activities in this bank ix Graduation thesis - Banking Academy Graph 4.4: The structure of non-performing loans under credit term over the period 2015 11.6% 2014 2013 88.4% 7.2% 9% 92.8% 91% 38 Graduation thesis - Banking Academy Besides the increasing outstanding loans, the existing NPLs were considerable in three researched years with the unstable trend In 2013, the amount of this loans was 6,745 million and doubled after one year By 2015, this firgure had continued to rocket by 137 477 million, corresponding to the rate of 653.2% However, the number of nonperforming loans still accounted for a small proportion of the bank's total loans The great growth of total loans in recent years accompanying to the increasing NPLs were understandable a Short-term NPLs The amount of short-term NPLs in 2014 was 19 523 million, rising by 13 382 million corresponding to the rate of 217.9% in comparison with the first year of period, In the last year given, this figure continued to strengthen significantly by 120 598 million or 617.7% compared to 2014 In terms of structure, the proportion of short-term NPLs was high over 85% but a slight downward trend during 2015 This percentage accounted for 91.0% in 2013, rose to 92.8% in 2014 and reduced to 88.4% in the remaining year b Medium and long term NPLs Regarding NPLs of medium and long term, it also boosted but took up a small percentage of total loans (ranging from 7% to 12%) In particular, the number of these loans was 604 million in 2014 and rose by 152.5% when compared to 2013, and after year this figure intensified to 11 times (in detail 18.404 million) The root of the surge in NPLs of the short, medium and long term for years (2014 and 2015) was the strong development of outstanding credit, and the instability of the economy, which not only caused the damage to businesses but also made the business unable to pay debts to banks There were several objective causes of the fact that some borrowers used the funds for improper purposes or arbitrarily changed the purpose of the fund utilization as proposed with the bank before, and the case of that the sense of some borrowers were not high, and there were still some customers without the willing to repayment although they were capable to repay loans from bank 39 Graduation thesis - Banking Academy The proportion of NPLs under the term of the bank in 2015 had changed in comparison with two years before, which was due to the reduction of the proportion of short-term NPLs and the upturn of medium and long-term ones, complied with the policy about structure of lending of the Bank Bank aimed to raise the percentage of outstanding long-term loans, leading to the proportion of medium and long term NPLs also extended (from 9.0% to 11.6% between 2013 and 2015) On the other hand, this accumulation was due to the fact that the investment projects completed beyond the time limit for high costs 4.3 EVALUATION OF CREDIT ACTIVITIES BY USING INDICATORS IN SHB HANOI OVER THE PERIOD Table 4.8: Indicators of evaluating credit operation in SHB over the period Unit: Millions VND Indicators Units 2013 2014 2015 Total loans/ Total deposits Total loans/ total assets % 64,0 42,3 53,0 % 37,3 33,8 43,3 % 63,3 38,0 76,0 % 1,4 0,5 2,5 Total bad loans/ Total loans Debt collection/Total loans 4.3.1 The loans-to-deposits ratio (LTD) This indicator, reflecting the ability to utilize deposits of bank, is too high or too low, both of which are not good Generally, over the three years bank had not used up its deposits, in expression of this ratio that was always less than one This showed that the situation of the mobilization was more effective, expressing through the fact that the participating rate of bank’s deposits in outstanding loans over three years was relatively stable Specifically, by 2013, 1.0 VND of capital had been used for only 40 Graduation thesis - Banking Academy 0.64 VND of outstanding loan In 2014, the mobilization of capital was also much higher than that in 2015 and the growth rate of deposits outpaced the growth rate of loans Therefore, at that year, one VND of deposit was used for just 0,423 VND of loan, and after year, this index increased to 0,53 Although this figure declined in comparison with the first year of researched period, the Bank's outstanding loan had enlarged over the years due to the growth rate of loans being slower than that of deposits 4.3.2 The loans-to-assets ratio This is an indicator reflecting the credit policy of the bank, which express how much the bank's activities have focused on granting credit During three recent years, in SHB this index only fluctuated from 33% to 43% This suggests that the source of funds in bank does not focus on granting credit but expanding into many other fields Therefore, bank still maintains profitability and simultaneously disperses risk 4.3.3 Credit risk ratio This index reflects the performance of the bank credit The lower this ratio of the bank is, the higher the credit quality of bank is Based on the statistics, in 2013, the proportion of bad debt on total loans was 1.4%, and reduced to 0.5% after year The positive result was due to the effective working of appraisal of loan, besides the investment projects were implemented in compliance with the permit and under the leadership of the bank executives By 2015, this percentage increased to 2.5% However, this rate was still below the level guaranteed by the central bank regulation which is 5% Although the bank has achieved flying results as above but bank also needs to consider the bad debt incurred by objective factors to decrease non-performing loans to the lowest level 4.3.4 Debt collection ratio This indicator reflects the results of debt collection at SHB Hanoi as well as the ability of customers to repay loans The table showed that debt collection ratio of bank was volatile from 2013 to 2015 This ratio remained 63.3% in 2013, and by 2014, it had dropped to 38.0% The reason was that the short-term loans were granted with 41 Graduation thesis - Banking Academy many customers in the last six months of the year 2014, while the medium and long credit-term loans also rose in the same year, so bank had to collect debts in the next one That is the reason why in 2015 this ratio had climbed to 76.0%, higher than in 2013, which showed that the bank had a close cooperation between the rise of loan sales and the strengthening of debt collection to help the bank's capital circulate continuously and ensure safety from the stage of selection of customers who are prestigios and have the financial capacity to lend to the stage of approving loans and collecting debts at the maturity date 42 Graduation thesis - Banking Academy CHAPTER V FINDINGS OF CREDIT ACTIVITIES IN SHB HANOI FROM 2013 TO 2015 5.1 ACHIEVEMENT AND LIMITATION OF CREDIT ACTIVITIES 5.1.1 Achievement of credit activities in SHB Hanoi Saigon – Hanoi commercial joint stock bank _ Hanoi branch had an interest in the management of interest rate risk, namely SHB Hanoi always complied well with the regulations on deposit rates and lending rates Besides, the bank had always focused on the interest rate adjustment, according to market volatility Within three years, the bank had not stopped investing equipments, computers and computer softwares to enhance the technologies of the bank Moreover, the management of capital of the bank had paid constantly attention and as a result the bank maintains a logical structure between capital and outstanding loans This achievement of SHB Hanoi was resulted from various advantages of bank such as follows: The policies and regulations promulgated by bank have adapted practically, more effectively and created conditions to attract capital, credit investment Moreover, staffs of bank are young, highly qualified, professional, dedicated to work for the purpose of safety, efficiency and sustainability of business activities of the bank and technical facilities are quite fully equipped In addition, total capital rising with high growth rate expresses confidence of customers in bank increasingly better, while the inspection and control are enhanced because the errors are closely detected, timely treated and arising negativeness adversely affecting the bank's operations are prevented Particularly, the Bank has actively and positively built a complete technology system in the accounting profession, credit, appraisal matching with the bank's operations in the current period 5.1.2 Limitation of credit activities in SHB Hanoi 5.1.2.1 With the capital mobilization and banking services 43 Graduation thesis - Banking Academy The products of capital mobilization was not diversifying because of the low product development of SHB Hanoi As a consequence, funds mobilized grew slowly, specifically deposits of economic entities occupied the majority while that of the population were little, leading to the unstability Moreover, the system of Automated Teller Machine (ATM) had not been really noticed but in pratice, it is also an important source of capital mobilization, contributing to the growth of idle capital in the economy Additionally, SHB Hanoi implemented the activities of marketing did not have professionalism (monotous products and quite boring propaganda), besides weak communication skills, lacking of measures to approach more new customers On the other hand, SHB Banking services were monotonous, and not diversifying, as well as had not yet designed for different customer groups to attract customers powerful 5.1.2.2 With the lending activities: Lending activities of SHB Hanoi are mainly short-term loans, while mediumterm loans accounts for a lower proportion of total loans sales, additionally the medium-term lending rate is higher than short-term lending rate Therefore, bank can extend the medium-term loans, which means an increase in profits for the bank Furthermore, outstanding loans rise gently while the market share decline and bad debt tends to climb Specifically, personnel forces are thin, adding to large area of operation and passiveness in lending to businesses, together with the incomplete and untimely financial statements of the business Consequently,loan officers are worried about lack of procedures, so they have changed to lend household entities In other respects, the ability to access and exploit the information of customers remains weak and the warning about risk is lack of timeliness 5.1.2.3 With the treatment and recovery of debts: SHB Hanoi has not really paid attention to the loans after granted because lack of inspection, as well as not yet handled debts, especially the non-performing loans which have no resolute treatment 5.2 SUGGESTIONS FOR IMPROVING CREDIT ACTIVITIES IN SHB HANOI 44 Graduation thesis - Banking Academy 5.2.1 With the capital mobilization and banking services Through analysis, it is found that deposits of banks have better progress demonstrated by the increase in mobilization year after year, which meets the borrowing requirements of the customer However, to further improve the mobilized capital and the business operations of the bank, SHB Hanoi needs to carry out reasonable solutions Firstly, they should apply a flexible interest rate policy in line with market rates, diversify maturities and interest rates but not lower than deposit rates of other commercial banks in the city Secondly, they also should apply forms of mobilization to win rewards or promotional gifts for depositers and some other mobilized forms and other promotions matching with preferences of people in the city Thirdly, SHB Hanoi needs to promote the remittance to mobilize foreign currency to the banks Fourthly, with economic organizations, bank needs to create and strengthen the relationship between bank and entities, which enlists their sympathy and supportiveness, encourage them to transact with bank to attract idle capital, especially large entities such as the state treasury, the post office, social insurance and other economic units outside the city Fifthly, SHB Hanoi should strengthen the dissemination of marketing information and upgrading the office buildings, the transaction dept to make a good impression with the customer from the start Stimultaneously, the large advertisement campaign is suggested to make through radio, advertising banners, flyers, brochures to each agency and household units to showcase products and services and create trusts and keep long-term relationships with customers, which aims to attract more customers Sixthly, they also should combine with the compensation committees to explore people having a source of fund from compensation, then orient efficient marketing 45 Graduation thesis - Banking Academy strategies to encourage customers deposit, who have large numbers of idle funds that banks can raise capital Seventhly, SHB Hanoi can implement modern products and services such as ATM cards, debit cards, credit cards to attract idle funds at low interest rates There are regularly promotions such as opening card for free and if necessary, the bank reduce cost of services as much as possible regardless of decreasing profits, however, the number of capital raised from this service is very high Eighthly, the bank needs to expand the marketing and introduction to each department and the employees on the work of mobilizing and encouraging customers There are suitable comissions for organizations and individuals whose have the working of campaign encourage customers deposit in SHB Hanoi 5.2.2 With the lending activities Besides raising funds with flexibility and attractive measures, bank will have to attempt to find solutions to improve the efficiency of capital utilization To prevent funds from freezing which raises costs and reduces profits, the bank must take steps to truly harmonize the mobilization and lending activities in order to bring increasing business efficiency As well as strategies of capital mobilization, SHB Hanoi declines lending rates lower than others to predominate in interest rates With the actual lending activities in recent years, there are many problems needing to improve in order to achieve business goals and earn profit Therefore SHB Hanoi should perform some of the following issues to further enhance the efficiency of its capital utilization a Making strategic customers, expanding the credit, gradually improving credit quality while maintaining traditional customers of the Bank For traditional customers who are prestigious and have effective production and business operations, the Bank should take a preferential lending rates for enterprises to strive for lowering the price of products which make competitions and thereby create a higher profit margin 46 Graduation thesis - Banking Academy For private individuals, the lending will be performed based on the collateral, however, bank should not consider the mortgage as the decisive factor On the other hand, the borrowing purposes may bring true effectiveness and the capacity of repayment are mainly overestimated leading to lending decisions Another important issue is that during and after lending process, the bank should regularly inspect the use of loans, especially those large loans and new firsttransaction customers On the other hand, SHB Hanoi needs to strengthen information between the bank on the financial situation of the business and the customer's violation Thereby, bank can avoid risky borrowers with negative outlook from the lending process to limit risk through the risk management information systems b Specializing credit officers Board of Directors appoint each credit officers who specialize in lending and debt collection in each specified geographical area The such division will help staffs understand the financial situation as well as business contacts and demand for loans of each customer Since then plans for efficient loan are established and the loans allocated really are used in production and effective business Thereby the recovery of the debt and interest is quick and smooth when payment is on maturities SHB Hanoi should pay attention to the development of human resources Because the human force is always a leading factor to form a business policy of the bank in general and credit policy in particular The Bank, therefore, had better organize the work of fostering employees about skills, experiences, as well as moral qualities by investing for employees through additional training for their specialized knowledge, enabling them to have the opportunity to learn advanced technical and professional qualifications for all forms : training on site, attend seminars, short-term and long-term domestic and foreign training courses when conditions permit 5.2.3 With the treatment and recovery of debts: The bank should regularly perform reviews and assessment of the real situation of outstanding loans, as well as approving closely before granting new loans to prevent 47 Graduation thesis - Banking Academy the possibility of risk SHB Hanoi also had better set up a reward policy for credit officers attracting many protential customers who repay both principle and interest at maturity date Additionally, bank needs to prepare plans for recovery of debt to prevent non-performing loans, such as follows: a Draft a clear policy on payment to limit the problem arises: require customers to sign an agreement, provides for the payment required to make timely and clearly customers are subject to penalties if slow payment b Demonstrate specific date in lending contract Phrase "payment within 30 days" will be less than the term affirmed "the deadline on May 30." c Set up a debt recovery process: identify credit office who will be responsible for working with clients as well as specify the time, how to send a reminder or phone calls Staff needs to be aware of the importance of the recovery of debts d Use phone calls and face-to-face appointment instead emails: Forget sending reminder emails or letters because they can be thrown away or erased Instead, pick up the phone and made an appointment to meet directly to discuss e Make sure that credit officer is talking to people who have the ability to decide to pay If he can not directly meet that person, he should briefly talk about purpose of the call and the payment deadline, then ask the clerk notes the information and confirm f Always remain calm and professional This is a business transaction, and bank grants loans and customers owe the bank Do not yell or threaten g Requires precise commitments The credit officer should not let the customer end the conversation by repudiation "I will submit in the coming days." He must request an exact figure on the exact time, then repeat the to avoid any risk of misunderstanding and after the call he have to send a confirmation email content h Hire a specialized organization about debt recovery If the bank has bad debts withouth receiving any reponses of repayment from customers, bank should ask an organization doing debt collection work with this clients 48 Graduation thesis - Banking Academy CHAPTER VI RECOMMENDATIONS AND CONCLUSION 6.1 RECOMMENDATIONS Through credit situation in Saigon Commercial Joint Stock Bank - Hanoi branch with dedicated guidance of the bank officers, and analyzing and understanding the operation of credit at the bank, it is noticeable that credit activities of banks is still effective and relatively safe but there are many existing difficulties affecting the evolution of the Bank To limit the credit risk of the Saigon Commercial Joint Stock Bank – Hanoi branche, some recommendations are giving in this thesis: 6.1.1 With government All the business activities of economic institutions in general and commercial banks in particular are controlled by the management of the goverment Without the legal system, it will reduce trusts, operational efficiency Therefore, the State authorities should simplify the procedures, and limit unnecessary notarized documents, and quickly proceed the documents It is essential that a coordination between commercial banks and courts needs to enhance to handle debts more effectively Government agencies should also complete the process of granting land ownership for families, individuals to boost colleteral available 6.1.2 With the State Bank of Vietnam The policy regulations, the document of guiding instructions, answers need to be realistic, clear and easy to understand to avoid confusion in the implementation process The Bank should also build gradually the legal framework to ensure a fair and safe environment for all commercial banks and financial institutions operating in the territory of Vietnam There are strict regulations on enterprises having the credit relationship with the bank, periodicly financial reports sent quarterly, months and full year, timely and accurately Moreover, the Bank had better strengthen the inspection of credit activities and foster professional staff, as well as acquire the 49 Graduation thesis - Banking Academy comments of banks, revise the current law regulations to amend and supple them more relevant, more realistic In addtion, SBV needs to construct and complete financial market with a system of modern financial information, simultaneously ensure the financial system to operate safely and efficiently 6.1.3 With SHB Hanoi SHB Hanoi should expand the business network and develop banking services in the potential areas to attract depositors and lenders but based on building credit development strategy in line with regional development of the city Bank also need to simplify the procedures for granting credit for businesses and individuals to avoid customers to wait long in the borrowing process In addition, bank had better classify the types of customers and select high-reputation enterprises with effective performance Due to the large area with a large volume of customers, the duty of credit officer requiring them to regularly and closely follow each customer but low staff costs, limited salaries, their capacity does not promote to the extend Therefore bank should review expenses for credit staff and give higher bonuses for them if working with enthusiasm and effetiveness 6.2 CONCLUSION Facing with the unstability of the domestic and foreign economy and to achieve economic efficiency as expected, bank needs to exert further to overcome the difficulties and limitations Saigon Commercial Bank - Hanoi has overcome many difficulties and fierce competition between banks in the same city, challenges in the process of economic integration in the world to achieve certain successes Stemming from the situation of credit activities in SHB Hanoi, subject has been studied the theoretical issues on credit operations as well as the improvement of the efficiency of credit Operating in the competitive environment in all aspects, SHB Hanoi has shown its bravery, role and its functions With the situation of capital mobilization, the bank's capital through the three years fluctuated, however, the good news is that bank 50 Graduation thesis - Banking Academy deposits increased continuously over the years and accounted for the increasing proportion of total capital According to this trend in the coming years, the deposits will continue to contribute to funds of banks Regarding the performance of lending activities, the situation of loans surged with high growth rates, but the phenomenon of bad debts was also rising About the indicators of measuring the performance of credit activities, the credit operations of the bank are admirable with positive indicators, such as: debt collection ratio, the rotation of revolving fund and credit risk ratio which are also lower than the limit allowed by the central bank, although NPLs, bad debts had climbed but still in control of the bank Mentioning the resutls of business, over years revenue and profit of the bank had continued to magnify, which shows that SHB Bank Hanoi had followed the right direction with appropriate development policies that contributes to regional economic development To achieve results, the entire staff of the bank has worked with a high sense of responsibility and dedication to heat decision at duties In summary, effective credit operations achieved in recent years indicates that the reputation of SHB Hanoi improved and confirmed the competitive position in the city Thanks to the leadership of the board of directors, with internal solidarity, attentive service style of bank’s staff, such results are achieved deservably 51 Graduation thesis - Banking Academy REFERENCES BANKING CREDIT (2014) – Banking Academy Rose, Peter S COMMERCIAL BANK MANAGEMENT, 5TH EDITION (2002) COMMERCIAL BANKING (2014) – Banking Academy Heffernan, S MODERN BANKING (2005) Financial reports of Saigon – Hanoi commercial joint stock bank _ Hanoi branch from 2013 to 2015 Website: www.shb.com.vn Website: www.investopedia.com 52