(LUẬN văn THẠC sĩ) capital adequacy measurement, a case study of an binh commercial joint stock bank

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HOCHIMINH CITY FALCUTY OF BANKING MBA PROGRAM Capital Adequacy Measurement A CASE STUDY OF AN BINH COMMERCIAL JOINT STOCK BANK Thesis made by NGUYEN THANH PHONG Thesis Tutor: Assoc Prof., Ph.D Tran Hoang Ngan Vice Rector of HCMC University of Economics 06/2010 Ho Chi Minh City TIEU LUAN MOI download : skknchat@gmail.com Acknowledgements To achieve this thesis, I would like to convey my sincere thanks and appreciation to the Economics University of Ho Chi Minh City , MBA program officers who have facilitated and helped me with all their kindness and assistance My special thanks to Ms Pham Thanh Thuy, Director of Treasury Division of An Binh Commercial Joint Stock Bank, Mr Vo Van Nhuan, Vice Head of Financial Accounting Department, of ABBank, Mr Nguyen Cong Anh and Ms Tuy Loan, Expert of Financial Accounting Department of An Binh Commercial Joint Stock Bank who created favorable conditions, gave me relevant data and helped me to carry out significant analysis and CAR measurement jobs during the time I had been doing this research dissertation From DHL- VNPT Express Ltd., I appreciate Mr Do Huu Anh, Deputy General Director, Ms Dao Thi Ngoc Anh who have supplied me valuable data, information and edited this research All of us have had good cooperation during the time of this thesis being done Apart from the above mentioned, Mr Nguyen Huu Nhan, Mr Ngo Tran Kien Quocmembers of MBA Banking class, Dr Truong Tan Thanh- lecturer of Investment analysis and portfolio management and my wife having encouraged and helped me with all their hearts made me more confident and delighted to carry out this research dissertation I would like to say that a lot of thanks are owed, in particular, to the assistance and guidance from Assoc Prof., Ph.D Tran Hoang Ngan, Vice Rector of Ho Chi Minh City Economics University Ph.D Tran Hoang Ngan, the tutor has encouraged and given me a lot of advice on doing this thesis Without Ph.D Tran Hoang Ngan‘s advice, a lot of difficulties would surely arise during my performance on this task Once again, all assistance helping me with this thesis is highly appreciated i TIEU LUAN MOI download : skknchat@gmail.com Abstract In current age, globalization of financial institutions is a characteristic point and unavoidable trend that make each country have to establish a banking management system to protect against financial risks, to reinforce transparency in the banking payment system and to tighten regulation on capital adequacy In order to conduct the opening door policy and integrate intothe world economy, implement commitments of the WTO, Vietnam has many efforts to apply international standards in capital banking management In 2005, SBV issued the Decision 457/2005 promulgating the regulation on safety assurance ratio in activities of credit institutions and they continued to grant the Decree number 141/2006 date the January 1st, 2006 required Vietnamese commercial banks to have a chartered capital of 3,000 billion VND at the end of 2010 which were seen the interest of SBV in capital fund of commercial banks The research problem of the thesis is to examine the adequacy of bank capital in Vietnamese banking system through a case study of An Binh Bank In term of structure, the research study has six chapters Chapter One and Two review research background, scope of work, methodology, significance of the study, risk in banking operation and banking capital adequacy Chapter Three introduces research methodology is carried out in the thesis Chapter Four and Five present an overview of CAR measurement in Vietnamese banking system and survey results obtained from a real model Chapter Six provides some conclusions and recommendations from the research With the finding as presented above, the dissertation provides many implications to be able to improve in banking capital adequacy management in Vietnamese commercial banks ii TIEU LUAN MOI download : skknchat@gmail.com Glossary of terms and abbreviations SBV State bank of Vietnam SOCBs State owned commercial banks JSCBs Joint stock commercial banks SPBs Social policy bank JVBs Joint-venture banks FBBrs Foreign bank branches FFOBs Fully foreign owned banks VAR Value at risk ORM Operational Risk Management ALM Asset Liability Management ALCO Asset Liability Committee ABB An Binh Commercial Joint Stock Bank FRB the Federal Reserve Board FRS the Federal Reserve System FDIC Federal Deposit Insurance Corporation OCC The Office of the Controller of the Currency RWAs Risk- weighted assets US the United States OECD The Organization for Economic Co-operation and Development BIS Bank for International Settlements CAR Capital adequacy ratio GDP Gross domestic product IBRD International Bank for Reconstruction and Development EBRD European Bank for Reconstruction and Development ADB Asian Development Bank AfDB Africa Development Bank iii TIEU LUAN MOI download : skknchat@gmail.com EIB European Investment Bank IADB Inter- American Development Bank ACB Asia Commercial joint stock Bank STB Saigon Thuong Tin Commercial Join Stock Bank VCB Vietnam Foreign Trade Commercial Join Stock Bank Vietinbank Vietnam Joint Stock Commercial Bank for Industry and Trade EAB Eastern Asia Commercial Joint Stock Bank TCB Technological and Commercial Joint Stock Bank EIB Export Import Commercial Bank OCB Orient Commercial Joint Stock Bank NAB Nam A Commercial Joint Stock Bank SCB Saigon Commercial Joint Stock Bank HDB Hochiminh City Housing Development Joint Stock Bank VBSP Vietnam Bank for Social Policies VDB Vietnam Development Bank BIDV Bank for Investment and Development of Vietnam MHB Mekong Housing Bank VBARD Vietnam Bank of Agriculture and Rural Development DAB Dong A Bank MB Military Bank VIB Vietnam International Bank ROA Return on Assets ROE Return on Equity EPS Earning per Share PCC Primary capital components TA Total assets AfL& LL Allowance for loan and lease losses ATRR Allocated transfer risk reserves SCC Secondary capital components iv TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank (LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank Table of Contents Acknowledgements i Abstract ii Glossary of terms and abbreviations iii Table of Contents v List of Tables ix List of Figures .x Chapter One: Introduction 1.1 INTRODUCTION 1.2 RESEARCH BACKGROUND 1.3 RESEARCH PROBLEMS 1.3.1 RESEARCH OBJECTIVES 1.3.2 RESEARCH QUESTIONS .4 1.4 SCOPE OF WORK AND LIMITATION 1.5 METHODOLOGY 1.6 SIGNIFICANCE OF THE STUDY 1.7 STRUCTURE OF THE STUDY Chapter Two: Literature survey 2.1 INTRODUCTION 2.2 RISK IN BANKING OPERATION 2.2.1 BANKING RISK OVERVIEW 2.2.1.1 Credit risk .7 2.2.1.2 Market concentrate risk v TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank (LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank 2.2.1.3 Interest rate risk 2.2.1.4 Funding risk 2.2.1.5 Foreign currency risk 2.2.1.6 Economic risk .9 2.2.2 2.3 BANKING RISK MANAGEMENT ORGANIZATION ADEQUACY OF BANK CAPITAL 10 2.3.1 REGULATIONS OF ADEQUATE CAPITAL 11 2.3.1.1 Uniform capital requirements 12 2.3.1.2 Risk- adjusted capital requirements 14 2.3.2 REGULATORS’ VIEW POINTS 16 2.3.3 BANKERS’ VIEW POINTS 17 2.4 CONCLUSIONS 17 Chapter Three: 18 Research methodology 18 3.1 DEFINE RESEARCH PROBLEM AND ESTABLISH RESEARCH OBJECTIVES 18 3.2 DETERMINE AND COLLECT DATA 18 3.3 EVALUATE AND ANALYZE DATA 19 3.4 RECOMMENDATIONS AND CONCLUSIONS 20 Chapter Four: 21 An overview of CAR measurement in Vietnamese banking system 21 4.1 VIETNAMESE BANKING STRUCTURE 21 4.2 REAL ACTIVITIES OF VIETNAMESE COMMERCIAL BANKS 23 4.2.1 ACHIEVEMENTS 23 4.2.1.1 Number of commercial banks increased annually 23 vi TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank (LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank List of appendices - Investment in projects under contracts, stipulated in the Government's Decree No.79/2002/ND-CP of October 25,2002 on organization and operation of financial companies - Receivables secured by real estate of borrowers The group of assets which have risk weight of 100% - Charter capital allocations to subsidiary companies other than credit institutions, having the legal person status and practicing independent cost-accounting - Receivables from banks established in states other than OECD member states, with a residual maturity of under year or more claims guaranteed by these banks, with the remaining term of year and more - Receivables from central governments of states other than OECD member states, except for cases where loans as well as loan sources are in the national currencies of such states - Real estate, machinery, equipment and other fixed assets - Other receivables The group of assets which have risk weight of 150% - Loan for securities investment - Loans to security companies for securities trading - Loans to enterprises which are governed by credit institution themselves (Source: Decree 457/2005/QD-NHNN, Decision No 03/2007/QD-NHNN.) Appendix 3: Risk converted ratio off balance assets Components Conversion factor Commitments to guarantee, finance clients Irrevocable commitments in replacement of the form of direct provision of credits but carrying a risk level like direct provision of credits: loan 100% guarantees, payment guarantees, standby L/C Irrevocable commitments toward the credit institutions' obligation to 50% 62 TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank (LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank List of appendices make payment on others' behalf: contract performance guarantees, bidding guarantees Other commitments with an original term of year or more 50% Trade-related commitments: irrevocable letters of credit, goods delivery guarantee Revocable L/C, Other unconditional revocable commitments 20% 0% (Source: Decree 457/2005/QD-NHNN, Decision No 03/2007/QD-NHNN.) Appendix 4: ABBank's CAR calculation in 2008 according to SBV's regulation @ million VND Tier Components a- Chartered capital b- The chartered capital addition reserve fund c- The financial reserve fund d- The operation development investment fund e- Undivided profit Total Book values 2,705,882 1,164,163 23,087 12,046 617 3,905,795 Tier 2: Components a- The increased value of fixed asset which are revalued according to the provisions of law b- The increased value of investment securities (including investment shares, contributed capital) which are revalued according to the provisions of law c- Convertible bonds and preferred stocks issued by credit institution are issued by credit institution have residual maturity within years d- Convertible bonds have residual maturity Risk Riskweight adjusted Book assets values category 50% 40% 100% 40% 0 63 TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank (LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank List of appendices within 36 months ñ- Other debts have residual maturity within years e- General reserve Total 24,359 100% 100% 24,359 24,359 On balance sheet assets Components 1- Group of assets have RW ratio of % a- Cash Vietnam Dong deposits in SBV b- Gold c- Vietnam dong deposits maintained by State owned credit institutions at the Social Policy Bank under the Government’s Decree No 78/2002/ NĐ-CP dated 4, Oct, 2002 d- Loans being financed capital, trust investments under trust contracts under which credit institutions enjoy only trust commission and bear no risks Risk RiskBook weight adjusted assets values category 1,361,150 0% 173,943 0% 714,629 0% 0% 0% 1,052 0% 412,298 0% 59,228 0% ñ- Vietnam dong receivables invested in bonds and valuable papers issued by Vietnamese government or SBV e-Discounts and rediscounts of valuable papers issued by credit institutions themselves h- Receivables from central governments or central banks of OECD member states I-Receivables secured with securities of central government of OECD member states or guaranteed by central governments of OECD member states 2- The group of assets which have risk weight of 20% 2,267,271 20% 453,454 a- Receivables from other credit institutions at home and abroad in each currency 2,267,271 20% 453,454 0% 0% 64 TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank (LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank List of appendices b- Receivables from provincial/municipal People's committees, foreign-currency receivables from the Vietnamese Government or Sate Bank of Vietnam c- Receivables secured with valuable papers issued by other credit institutions established in Vietnam d- Receivables from State Owned financial institutions; receivables secured with valuable papers issued by State Owned financial institutions ñ- Precious metals (excluding gold), gems e- Cash item in the process of collection g- Receivables from IBRD, IADB, ADB, AfDB, EIB and EBRD and receivables guaranteed by these banks or secured with securities issued by these banks h- Receivables from banks established in OECD member states receivables guaranteed by these banks j- Receivables from securities companies established in OECD member states and comply with agreements on risk- basis capital management and supervision and receivables guaranteed by these companies k- Receivables from banks established outside OECD member states with a residual maturity of under year and receivables with a residual maturity of under year and secured by these banks 3- The group of assets which have risk weight of 50% a- Investment in projects under contracts, stipulated in the Government's Decree No.79/2002/ND-CP of October 25,2002 on organization and operation of financial companies b- Receivables secured by real estate of borrowers 4- The group of assets which have risk weight of 100% a- Charter capital allocations to subsidiary companies which are not credit institutions, have the legal entity and independent cost- 20% 20% 20% 20% 20% 20% 20% 20% 20% 6,291,375 50% 3,145,688 50% 6,291,375 50% 3,145,688 3,002,463 100% 3,002,463 100% 65 TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank (LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank List of appendices accounting b- Receivables from banks established which are not OECD member states, have a residual maturity of under year or more claims guaranteed by these banks, with the remaining term of year and more c- Receivables from central governments of states which are not OECD member states, except for cases where loans as well as loan sources are in the national currencies of such states d- Real estates and other fixed assets ñ- Other receivables 5- The group of assets which have risk weight of 150% and 250% a- Loan for securities investment b- Loans to security companies for securities trading c- Loans to enterprises which are governed by credit institution themselves d- The contributed capital portion, jointventure capital amount, shares purchased of investment funds, and/or other enterprises which exceeds 15% of owned capital of credit institution Total 100% 677,357 2,325,106 100% 100% 677,357 100% 2,325,106 1,155,691 188,380 2,116,917 250% 470,950 195,000 250% 487,500 150% 772,311 14,077,951 150% 1,158,467 8,718,522 Off balance sheet assets Components a- Capital loan guarantees nominated by government b- Import payment guarantees c- Standby letters of credit issued as capital loan guarantees d- Contract performance guarantees nominated by government đ- Bidding participation Risk RiskConversion weight adjusted Book factors category assets values 95,850 126,430 173,352 97,849 100% 100% 0% 100% 126,430 100% 100% 50% 50% 0% 100% 48,924 66 TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank (LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank List of appendices guarantees e- Irrevocable commitments toward the credit institutions' obligation to make payment on others' behalf with an original term of year or more 2,342,315 g- Irrevocable letters of credit issued to import merchandise h- Acceptances to pay short term commercial bills of exchange secured with goods I- Goods delivery guarantees k- Other trade related guarantees 390,358 l- Revocable letters of credit m- Other unconditional revocable commitments, with an original term of months Total 3,226,154 CAR = 38.7% 50% 100% 1,171,158 20% 100% 20% 20% 20% 0% 100% 100% 100% 100% 0 78,072 0% 100% 1,424,584 Appendix 5: Seminar “ABBANK - Top Business VNR500: Financial Solutions for gold class” Appendix 6: Profit and loss report 67 TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank (LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank List of appendices 68 TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank (LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank(LUAN.van.THAC.si).capital.adequacy.measurement a.case.study.of.an.binh.commercial.joint.stock.bank