Credit quality at vietnam joint stock commercial bank for industry and trade

The credit quality of Vietnam Joint Stock Commercial Bank for Industry and Trade Vietinbank in the period 2017 - 2022 is not high, although looking at the bad debt ratio we see that it i

INTRODUCTION

1 Rationale

Bank credit is a product the bank provides to serve its customers Like other products, it also has quality, however because the banking industry is a special economic sector, closely related to many areas of the economy, credit quality has its own characteristics For banks, credit quality is expressed in the scope and level of credit limits that must be suitable for the bank while still ensuring competitiveness in the market, making economic relations healthier and serve growth and development, for customers, credit quality is the satisfaction of reasonable customer requirements with reasonable interest rates and simple procedures

Along with the continuous growth and development of the economy, the need for capital has become extremely urgent for infrastructure construction, equipment innovation as well as economic restructuring The activities of commercial banks have become an indispensable part in the development process, and banks have become an important link constituting the smooth movement of the economy Along with other economic sectors, the bank is responsible for participating in stabilizing the currency market, controlling inflation, creating a favorable investment environment, and creating jobs for workers Credit activities are the most basic and important activities among all commercial banking activities That activity has created the majority of assets in the total assets of commercial banks, and is the activity that creates the main source of income for each commercial bank in the form of income from loan interest However, this activity always carries many potential risks and can cause large losses, leading to insolvency or bank bankruptcy This is why credit quality is always a vital issue in business activities that any bank must pay special attention to throughout the process of existence and development

The credit quality of Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) in the period 2017 - 2022 is not high, although looking at the bad debt ratio

we see that it is positive, the data shows that the bad debt ratio in 2017 was 1, 15%, in

2018 it increased to 1,59%, in 2019 it decreased to 1,15%, in 2020 it was 0,93%, in 2021

it was 1,27%, in 2022 the bad debt ratio was 1,24%, we need to pay attention to the absolute numbers and due to post-pandemic debt postponement and rescheduling measures, and the legal environment is gradually being improved, the business activities

of Vietnamese commercial banks are facing many difficulties, especially the credit quality is not high, which is reflected in large overdue debts and bad debts Accurately and scientifically analyzing the causes of credit risks, from there, propose effective solutions to improve credit quality that are both urgent and long-term strategic and of great interest to many people

From the above perception, as a PhD student majoring in Finance - Banking at the Academy of Finance, and at the same time an officer working at VietinBank, I decided

to choose the topic: "Credit quality at Vietnam Joint Stock Commercial Bank for Industry and Trade " research topic for my doctoral thesis

2 Overview of research situation

The issue of "credit quality" has had many research projects domestically and internationally, with some of the following typical projects:

2.1 Domestic research projects related to the thesis

In this content, the thesis summarizes many research works and scientific discussions around the topic of the thesis such as:

1 Vũ Ngọc Anh (2021), Bad debt management at Vietnam Technological and Commercial Joint Stock Bank, Doctoral thesis in economics, Academy of Finance, Hanoi 2021 [3]

2 Đinh Nguyễn Bảo Anh (2023) Operational risk management at The Joint Stock Commercial Bank for Investment and Development of Vietnam, Doctoral thesis

in economics, Academy of Finance, Hanoi 2023 [1]

3 Hà Thị Mai Anh (2015), Doctoral thesis "Solutions to improve export credit quality at The Vietnam Bank for Agriculture and Rural Development or Agribank", Academy of Finance [2]

4 Trần Văn Dự (2010), "Solutions to improve the quality of lending to production households at Agricultural and Rural Development Banks in the Northern Delta

region", Doctoral thesis in economics, Banking Academy [11]

5 Nguyễn Thị Thu Đông (2012), “Improving credit quality at Joint Stock Commercial Bank for Foreign Trade of Vietnam during the integration process”, doctoral thesis in economics, National Economics University [12]

6 Dương Thị Hoàn (2019) ), Doctoral thesis "Improving credit quality at Vietnamese joint stock commercial banks" Academy of Finance [21]

7 Nguyễn Văn Thanh (2015), Doctoral thesis "Quality of household credit at Vietnam Bank for Agriculture and Rural Development", Academy of Finance [43]

8 Nguyễn Văn Tuấn (2015), Doctoral thesis "Solutions to improve credit quality at Vietnam Bank for Agriculture and Rural Development", Ho Chi Minh City Banking University [51]

9 Nguyễn Thị Như Thủy (2015), “Credit efficiency of the Bank for Agriculture and Rural Development of Quang Nam province”, Doctoral thesis in economics, Ho Chi Minh National Academy of Politics [47]

10 Nguyễn Thị Thu Cúc (2015), “Bad debt management at the Vietnam Bank for Agriculture and Rural Development”, doctoral thesis in economics at the Academy of Finance [8]

11 Trần Trung Tường (2011), “Credit management of joint stock commercial banks in Ho Chi Minh City”, Doctoral thesis in economics, Banking University

of Ho Chi Minh City [48]

12 Nguyễn Tuấn Anh (2012), “Credit risk management of Vietnam Bank for

Agriculture and Rural Development”, Doctoral thesis in economics, National Economics University [3]

13 Nguyễn Quang Hiện (2016), “Quản trị rủi ro tín dụng tại Ngân hàng thương mại

cổ phần Quân đội”, Luận án tiến sĩ kinh tế, Học viện Tài chính [22]

14 Trần Thị Việt Thạch (2016), “Credit risk management according to Basel 2

Agreement at Vietnam Bank for Agriculture and Rural Development”, Doctoral thesis in economics, Academy of Finance [44]

15 Nguyễn Như Dương (2018), “Credit risk management solutions at VietinBank”,

Doctoral thesis in economics, Academy of Finance [10]

2.2 International research projects related to the thesis

16 A.Burak Guner (2007) Research on the relationship between lending

opportunities and credit quality, analyze credit portfolios [49]

17 Faiçal Belaid (2014) Quality of credit operations [51]

18 Laivi Laidroo, Kadri Mannasoo (2017) Research on credit commitments that

affect credit quality [53]

19 KPMG (2008) Research on Credit Risk Management [56]

20 N.Grace (2012) Research on the effectiveness of credit risk management on the

financial performance of commercial banks in Kenya [52]

21 Samuel Hymore Boahene, Julius Dasah và Samuel Kwaku Agyei (2012) Research on credit risk and profitability of selected banks in Ghana [57]

2.3 Research gap

The above studies have made an important contribution to providing basic theories

on improving credit quality in recent times However, the studies mentioned above still have some "gaps" that have not been researched or clarified

 In terms of theoretical research

The theoretical basis of research on improving credit quality at commercial banks is not systematic and updated on credit quality at commercial banks

 In terms of practical research

Firstly, previous studies on credit quality within commercial banks were mainly

expressed through contents such as: credit growth, credit efficiency, credit risk, bad debt management in specific areas of bank financing such as: lending for import-export activities, international payments, lending to small and medium-sized

enterprises

Secondly, most of the previous studies focused on credit quality but at a specific

commercial bank or a specific area such as Hanoi, Ho Chi Minh City, Da Nang there has not been any scientific work that has comprehensively researched the issue of improving credit quality at VietinBank, especially especially in the period from 2017 -

2022

Thirdly, from different research angles, previous authors have built a quantitative

research model on factors affecting credit quality from the perspective of commercial

banks However, due to differences in time and space, fluctuations in the

macroeconomy and the level of impact of factors in previous studies may no longer be appropriate when conducting research on the subject with VietinBank from 2017 -

2022 Therefore, it is necessary to build a research model from a customer-centric perspective to suit the current situation of VietinBank

Fourthly, solutions to improve credit quality of commercial banks need to be

suitable for each stage of operation of the banking system, associated with economic fluctuations Previous research topics have proposed a number of solutions

socio-to improve commercial bank credit quality, but they are not comprehensive and specific for VietinBank Furthermore, those solutions are seen in different historical periods, from 2017 - 2022 is very diverse when integrating 4.0 and the covid - 19

pandemic

On the basis of accessing and inheriting the research works of previous authors, the PhD student found that there are no research projects that fully address improving credit quality at VietinBank With the above analysis, it shows that the thesis's research topic is topical and highly meaningful both in theory and practice The research content

is expanded and deepened, so there is no overlap with the research objects and scope of previous works Therefore, the topic of improving credit quality is still an urgent issue and has many new points that require research and proper assessment in the context of increasing credit risks The above "gaps" of research projects have suggested to the author new research directions to successfully carry out his thesis

3 Aim of the study

Aim of the study: Proposing a system of solutions and recommendations to improve credit quality at VietinBank until 2030

Research mission: To achieve the research purpose, the research tasks are:

- Determine the theoretical framework to research the credit quality of commercial banks;

- Research and clarify the theoretical basis for credit quality and banking management according to recommendations of international practices;

- Clarifying the current status of credit quality, assessing strengths, weaknesses and causes of weaknesses in credit quality in recent times at VietinBank;

- Propose solutions and recommendations to improve credit quality at VietinBank until 2030

4 Research question

- What models are there to research and evaluate credit quality? What models can

be used to research and evaluate bank credit quality?

- What are the specific criteria for evaluating credit quality at commercial banks that satisfy customer needs?Yếu tố nào ảnh hưởng đến chất lượng tín dụng tại ngân hàng thương mại?

- What is the current status of credit quality at VietinBank in the period 2017 - 2022? What are the results and limitations in improving credit quality? Why are there those restrictions?

- What needs to be done to improve credit quality at VietinBank by 2030

5 Object and scope of the study

5.1 Research subject

The research object of the thesis is the credit quality of commercial banks

5.2 Scope of the study

Regarding content: research on credit quality in the lending segment of commercial banks is approached according to the SERVPERF model, from a customer-centric perspective

 About space: at VietinBank

 Regarding time: Primary data will be surveyed in 2022, secondary data from 2015

to the end of 2022, proposed solutions until 2030

- Perform data analysis: analyze credit quality indicators, compare and contrast data between years, evaluate fluctuations and fluctuation trends over the years From there,

it helps the author evaluate the current status of credit quality at VietinBank

7 New contributions of the thesis

From the results of theoretical and practical research on improving credit quality of commercial banks in general and VietinBank in particular, the thesis has the following new contributions:

7.1 Theoretical contributions

Firstly: The thesis has synthesized and clarified a number of theories about credit activities and credit quality of commercial banks, especially evaluation criteria and factors affecting the credit quality of commercial banks and credit quality research models

Second: The thesis has surveyed experiences in improving credit quality at a number of domestic and foreign commercial banks From there, the thesis draws valuable lessons for reference for VietinBank on improving credit quality

Third: The thesis has built a quantitative research model including 5 factors affecting VietinBank's credit quality Research results show that there is a positive influence of these factors These results are consistent with theory as well as the results

of previously published studies, but the level and order of influence have changed many times The thesis also provides quantitative evidence showing the positive effects

of a number of factors on the credit quality of commercial banks that previous studies have not tested

Fourth: To comprehensively assess credit quality, the thesis analyzes groups of assessment indicators such as: credit scale and growth, bank profitability, level of credit safety

7.2 Practical contribution

Firstly, the thesis analyzed in detail the current status of credit quality at VietinBank according to the criteria In particular, by collecting information through actual surveys and quantitative models, the thesis evaluated VietinBank's credit quality in the period

2017 - 2022 through indicators and each influencing factor The combination of qualitative and quantitative research has contributed to increasing the reliability of the thesis's comments and assessments on VietinBank's credit quality in the period 2017 -

2022 This is very necessary for policy makers and VietinBank, because up to now

there is a lack of detailed and scientific analysis and arguments on the current status of credit quality at VietinBank

Second, based on the orientations to improve credit quality for VietinBank by 2030, the thesis has proposed a number of solutions and recommendations to improve the credit quality of VietinBank The solutions and recommendations partly follow the theoretical analysis and practical assessment of VietinBank's credit quality

8 Structure of the thesis

In addition to the introduction, conclusion, and various appendices, the thesis includes 3 chapters:

Chapter 1: Theoretical basis for credit quality of commercial banks

Chapter 2: Current status of credit quality at VietinBank

Chapter 3: Solutions to improve credit quality at VietinBank

CHAPTER 1: THEORETICAL BASIS FOR CREDIT QUALITY OF

1.1.2 Credit activities of commercial banks

In this content, the researcher introduces the definition, characteristics, classification and credit process of commercial banks

1.2 CREDIT QUALITY OF COMMERCIAL BANKS

1.2.1 Credit quality definition

Credit quality is the degree to which a bank meets customer satisfaction in using the bank's credit services on the basis of ensuring the bank's operational objectives and risk appetite

1.2.2 Credit quality research model

In this content, the researcher synthesizes a number of service quality research models such as SERVQUAL model (Parasuraman, 1988), SERVQUAL scale, SERVPERF model (Cronin and Taylor, 1992)

With the above mentioned perceptions in evaluating service quality The author applies the scales in Parasuraman's SERVPERF model to evaluate credit quality through customer satisfaction with commercial banks' credit services

1.2.3 Criteria for evaluating credit quality of commercial banks

In this section, the researcher focuses on three groups of indicators, which are: Group of indicators on credit scale, growth and structure; Group of indicators

showing profitability from credit activities; Group of indicators reflects the level of risk control in credit activities of commercial banks

1.2.4 Factors affecting credit quality

Subjective factors include: Bank credit policy; Credit processes; Marketing activities of commercial banks; Organizational structure and organizational work in lending of commercial banks; Human resources of commercial banks; Internal control system; Technology of Commercial Bank

Objective factors: Macroeconomic environment; Political - legal environment; Competitors; Client

1.3 EXPERIENCE IN IMPROVEING CREDIT QUALITY AND LESSONS FOR VIETINBANK

1.3.1 Experience in improving credit quality at commercial banks around the world

To improve credit quality, PhD researched the experiences of US Citibank and Korean commercial banks; Bangkok Bank - Thailand; ANZ - Australia

1.3.2 Experience in improving credit quality for customers at some Vietnamese commercial banks

In addition to international experience, the PhD student researched the experience of VCB, VPBank, and VietinBank

CONCLUSION OF CHAPTER 1

Chapter 1, by filtering and inheriting previous research related to theoretical content, the thesis has systematized theoretical knowledge related to credit, credit quality, especially measures Measures to improve credit quality at commercial banks Conduct in-depth research on the credit quality of commercial banks from the concept of credit quality, measurement criteria, credit quality assessment, factors affecting credit quality It focuses on reviewing credit quality according to theoretical models and selecting a credit quality assessment model Evaluating credit quality from many perspectives from both bank administrators and customers

is a research issue that needs attention from commercial banks, from which there are measures to improve credit quality to meet the needs of customers best credit capital needs for customers The author also researched experiences in improving credit quality at domestic and foreign commercial banks, thereby drawing useful lessons for Vietinbank

With the selected theoretical framework, it is used as a basis to evaluate the current status of credit quality at Vietinbank in the period 2017 - 2022 in chapter 2 and propose solutions to improve Improving credit quality at Vietinbank until 2030

in chapter 3

CHAPTER 2: CURRENT STATUS OF CREDIT QUALITY AT

VIETINBANK 2.1 OVERVIEW OF VIETINBANK

In this section, after studying the history of formation and development, organizational structure and business results in the period 2017 - 2022 of VietinBank through activities: capital mobilization, lending, services and results financial results

2.2 CURRENT STATUS OF CREDIT QUALITY AT VIETINBANK

2.2.1 Current status of the credit process

Credit process is a combination of the bank's principles and regulations in granting credit The content of the credit process is detailed instructions on the steps

to be taken in the process of appraisal, credit analysis and management after granting credit to customers Based on the general credit process of commercial

banks, VietinBank stipulates that the credit process includes eight specific steps as follows: (1) Contact customers, receive and check customer records (implementer), (2) Customer appraisal, collateral valuation, (3) The Sales Department submits documents (scans) to the Head Office Appraisal Center through credit management software, (4) Credit approval, (5) Complete loan security procedures and sign credit contracts, (6) Implement credit granting, (7) Check and handle issues arising after credit granting, (8) Notify due obligations, collect debts, liquidate contracts and maintain credit records

2.2.2 Current status of credit quality according to credit structure

2.2.2.1 Credit structure according by term

At VietinBank in the period of 2017 - 2022, in the credit structure by term, term credit always accounts for a high proportion (around 60%), medium and long-term credit accounts for about 40% and the remaining, Of which, medium-term credit has a proportion of about 10% and long-term credit has a proportion of about 30% This structure is relatively reasonable because short-term credit has the advantage of quick turnaround and low risk, while medium and long-term credit has higher income but higher credit risk However, following the trend, banks have gradually increased the proportion of medium and long-term loans, focusing on long-term loans that will increase income if there is good appraisal, risk assessment and good management of these credits In recent years, VietinBank's proportion of long-term credit fluctuated in 2015, 2016 and 2017, long-term credit accounted for about 43% of total outstanding loans, in 2017 the proportion of medium and long-term capital decreased slightly to 43.22%

short-2.2.2.2 Credit structure according to customer type

According to the above credit structure, most of the credit is focused on lending

to economic organizations, lending to economic organizations at VietinBank is constantly increasing in the period 2017 - 2022, accounting for the majority in both quantity and ratio important, In terms of quantity, from 395,776 trillion VND in

2015 to 652,867 trillion VND in 2020, 772.56 trillion VND in 2022, in terms of proportion, it always accounts for around 70% (accounting for 62,55% - 73,55%) However, from 2017 - 2022 compared to 2015 - 2017, this proportion has gradually decreased and been replaced by personal loans, this is an adjustment trend consistent with the bank's retail development orientation

2.2.2.3 Credit structure by currency

Regarding structure by currency, outstanding credit debt in the period 2017 -

2022 is still largely concentrated in local currency, and is increasing In 2015, the domestic currency debt balance was 474,369 trillion VND, accounting for 88,16%

of the total credit balance at VietinBank, the converted foreign currency debt balance was 63,711 trillion VND, accounting for 11,84% of the total credit balance

By 2022, the outstanding domestic currency debt will be 1.165,28 trillion VND, accounting for 92,19% of the total outstanding credit debt at VietinBank, the converted foreign currency debt balance will be 98,72 trillion VND, accounting for 7,81% of the total outstanding credit debt For many years, Vietnam has maintained

a foreign currency deposit mobilization interest rate of 0%, so the foreign currency source of commercial banks in general mainly comes from other activities of commercial banks Import-export enterprises have sources of foreign currency earned in their business activities only to maintain a minimum balance in foreign currency, most of which are used for profitable business activities in business activities Therefore, the proportion of outstanding loans in foreign currency remains low and continuously decreases in the period 2018 - 2022

2.2.2.4 Credit structure by industry group

VietinBank's credit activities are oriented to focus on a number of industries and industry groups such as: Commercial activities and Services; Industry; Production and distribution of electricity, gas, hot water, steam and air conditioning; Construction The above industry groups account for 80% of outstanding credit debt

in the period 2017 - 2022 Among industry groups, the Industry group accounts for a high proportion but tends to decrease in the period 2017 - 2022 Commercial and service activities have a continuously increasing proportion of outstanding debt from 2017 - 2021 but decrease in 2022 Looking at the data table above, we see that the fluctuations in the industry group in VietinBank's credit balance structure fluctuated quite clearly in the period 2017 - 2022

2.2.2.5 Credit structure according to loan nature

According to the nature of loans, the majority of VietinBank's outstanding loans

in the period 2017 - 2022 focus on lending to economic organizations and individuals (accounting for 97,8% to 98,8%), the remaining discounted loans account for a small proportion (from 0,7% to 1,1%) or loans from sponsorship and entrusted sources also account for an insignificant proportion of the total outstanding personal debt (from 0, 3% to 1,4%) These ratios also reflect that VietinBank's credit activities are consistent with practice

2.2.3 Current status of the internal credit rating system

Currently, VietinBank has built an internal credit rating system Thoroughly grasp the innovation of risk management content and methods in banking business, currently, VietinBank has comprehensively recognized credit risk in relation to other risks and has stipulated the issue of risk quantification as a basis for risk management activities

VietinBank's internal credit rating system began to be applied in 2008 using expert methods By 2012, the internal credit rating system was rebuilt using statistical methods and applied first to individual customers and micro enterprises and then deployed to corporate customers However, the internal credit rating system based on expert methods is still applied

The nature of the internal credit rating system is a set of methods, processes, controls, data collection and information technology systems that support the assessment and scoring of potential debt defaults of the customer, based on the scored score to classify that customer into the appropriate risk class VietinBank's internal credit rating system includes 3 groups of rating objects: enterprises, small-scale business units and individuals

Thus, currently VietinBank's credit risk assessment is still being implemented according to the internal credit rating method, which is an expert method, based on past data combined with the bank's experience This method hardly uses quantitative methods, so objectivity and transparency are not guaranteed According to the general development trend, this method cannot be considered the main method for measuring credit risk to make credit approval decisions

2.2.4 Current status of internal control

All business activities of VietinBank are inspected and supervised For credit activities, the control process is carried out based on the credit process

Figure 2.2 Credit operations control process

(Source: Vietinbank report)

2.2.5 Current status of credit quality at Vietinbank

2.2.5.1 Credit quality survey method at VietinBank has been implemented

To evaluate VietinBank's credit quality, the author conducted a survey of corporate and individual customers using the bank's credit services The survey was conducted for 4 months (from the beginning of January 2022 to the end of April 2022) The author uses the SERVPERF scale based on 5 factors: reliability, responsiveness, assurance, sympathy, tangibility with 26 observed variables Customers will rate with a 5-point Likert scale for each variable, from completely disagree (1 point) to completely agree (5 points) Through consulting with experts in the field of credit, the observed variables were changed and edited to suit the surveyed subjects The official research was conducted at all VietinBank transaction points with a sample size of 3,000 random VietinBank customers combined with object filtering Accordingly, to ensure the reliability of the data set to be collected, the criterion when selecting customers for survey is that the time the customer has used credit services at VietinBank must be 1 year or more

According to the plan, the questionnaire was sent to customer groups including corporate customers and individual customers in the following forms: sending mail

Internal control of credit activities

Pre-disbursement stage

- Control customer documents applying for credit

- Control the appraisal process

- Control the approval process

Disbursement phase

Control the disbursement process

Post-disbursement stage

- Control usage

- Control debt collection and handle arising issues

- Control the contract liquidation process

directly to customers and sending it directly to customers (through transactions at the counter), sent via email to send the survey form Of which 2,000 coupons were distributed to individual customers, 1,000 coupons were distributed to corporate customers

After two weeks, the author received 2.675 valid answer sheets (including 985 votes from corporate customers and 1.690 votes from individual customers) ensuring the factors that need to be analyzed

Thus, there are a total of 985 corporate customers accounting for 37% and 1,690 individual customers accounting for 63% of the total 2,675 customers surveyed From the above results, it can be seen that at VietinBank, the structure of individual customers uses credit services more than corporate customers

The rating is based on a 5-point scale in which: 1 is Completely disagree; 2 is Disagree; 3 is Normal; 4 Agree; 5 is Totally agree

2.2.5.2 Results of credit quality survey at VietinBank

First: Evaluate the reliability of credit services

There are 5 statements given for survey participants to evaluate the reliability factor attributes of credit services and the rating is based on a 5-point scale as follows:

 TC1: The bank always does exactly what it has committed (credit commitment, disbursement commitment, guarantee commitment )

 TC2: The bank sincerely solves customer problems (shares customer support when customers encounter difficulties )

 TC3: Provide good credit services right from the first time (support in consulting customer needs so that customer's plan is most effective)

 TC4: Using the service is due to the brand (the bank's brand is reputable and known to many people)

• TC5: Do not let errors occur during operations (good control of all stages, good staff quality)

Feelings of corporate customers about the bank "doing what it has committed to",

"sincerely solving customer problems", "providing good credit services right from the first time" priority" and "using services because of the brand" is better than individual customer groups Feelings of corporate customers about the bank "doing what it has committed to", "sincerely solving customer problems", "providing good credit services right from the first time" priority" and "using services because of the brand" is better than individual customer groups On the contrary, the individual customer group has a better evaluation than the corporate customer group in the criterion "no errors occur during the operational process" This may be because credit operations for businesses are often more complicated and involve more procedures than credit for individuals Thus, the survey results show that most customers' feelings about trust in VietinBank's credit quality are in a positive direction, except for cases where customers are having difficulties and want to receive support If there is any attempt to help from the bank, the bank has not yet resolved the issue and has no solution for the customer

Second: Evaluate the response of credit services

Survey results show that VietinBank customers rate the level of response of credit

services as low, with an average score from 2.4 to 3.55, in which:

- Criteria highly appreciated by both corporate and individual customers are: "ready

to meet customer needs", "credit officers are willing to help customers", "clearly inform customers" when the service will be performed”

- The remaining criteria all have scores below 3.0 points, the lowest score is the criterion "interest rate policy of competitive banks"

In general, corporate customers evaluate VietinBank's response to credit quality as higher than assessments from individual customers Customers all rated the score of the "interest rate policy" criterion as the lowest, showing customer dissatisfaction with this issue However, there is a common point between the corporate customer group and the individual customer group regarding the group of criteria that reflect the response: both groups of people say that they do not know exactly when they will receive the product they need, although both of these surveyed groups highly appreciated the working spirit of bank staff, who are always ready to help and answer customers' questions even at the busiest times

Third: Evaluate the assurance of credit services

Although only 1 criterion out of 4 criteria reflecting the assurance of VietinBank's credit quality is rated below average However, customer assessments of this criterion also affect the remaining assessments in terms of customers' perception of VietinBank's credit quality assurance In other words, the survey results show that the staff's problem-solving skills when serving customers' credit service needs are not good, and the bank needs to take measures to improve to improve credit quality assurance criteria to serve customers in the coming period

Fourth: Evaluate the sympathy of credit services

Individual customers' assessments of sympathy in credit quality at VietinBank are more favorable than corporate customers' assessments of this issue However, in general, both individual customers and corporate customers believe that VietinBank's officers and employees can provide “thoughtful customer care services and flexible customer policies” or “credit granting process” is very limited When customers encounter difficulties, it is not easy to contact the bank for support Evaluation scores for this criterion are mostly below 3 points

Fifth: Evaluate the tangibility of credit services

Based on the scoring results and actual observations and assessments, VietinBank's current offices still have many limitations, the rented transaction office is still cramped and has not undergone major upgrades and renovations, so the office space is still cramped Office equipment at the bank has deteriorated, The design is not formal, making it unsuitable for modern offices; Many bank transaction locations lack parking for customers to make transactions, leading to limitations and loss of customers' time when coming to make transactions

The most underrated factor for credit services is the response factor Specifically, there are 4 lowest criteria that must be mentioned: it takes a long time to register to use the service, loan application review time is slow, collateral policy is not flexible, policy Interest rates are not competitive so they cannot meet customers' needs