Đang tải... (xem toàn văn)
Nowadays, banking is one of the most important financial channels for the economy. Improving and expanding banking activities are the orientation and guideline for banks to survive and grow in the increasingly fierce competition. Among that, credit activity is a vital field in the bank and decides most of other activities in the national economy. It is also a main source of creating profitability and decides the existence and development of the bank. For a long time, most banks only focused on lending the production business but not much paid attention to the final stage of producing – consuming. Actually, when society increasingly grows, not only the enterprises need capital to make business and expand the current market but the individual need more capital than ever before as well. People’s living standards are more and more improving, not only in need of basic necessities like food, clothes but also tons of needs both in mental and physical life.
INTERNSHIP REPORT/VO THI KIM NGAN Dedication I dedicate all my efforts and struggles of the educational life of my dear parents who help support and guide the course of my educational life, without them I’m meaningless. Also I devote the work of this internship report on Agribank report, as respectable and honorable teachers who teach and support me develop my personality as a competent professional. My all internship work is dedicated to following employees of Agribank. They are too much supportive and teach me how to learn a practical life. They always give me different tasks which bring more knowledge to me and guide me how to accomplish these tasks. Acknowledgment To finish this report, I am deeply grateful to all those who have shared ideas, valuable comments and encouragement during my writing of this paper. First of all, I would like to express the deep sense of gratitude to my supervisor, Ms. Nguyen Hong Mai for her useful guidance, critical comments and valuable suggestions on this report. Without her help, this report could not have been completed. Besides, my sincere thanks are also given to the Faculty of English for Banking and Finance, Banking Academy for the devoted teaching of all the lecturers and for giving me the knowledge and studying methods. Their teaching not only helps me gain valuable knowledge and skills during 4 years but also lays the foundation for my future work. Next, I would like to express my special thanks to the staff at the Agribank fifth transaction department of Cau Giay Branch for their big support so that I could finish my internship there and finish the paper successfully. Last but not least, I wish to extend my thanks to my family and frinds for their support, contribution and encouragement in the making of this report. However, owing to my lack of experience and knowledge as well as the limited scope of the research, some shortcomings and mistakes are unavoidable. Please kindly take into account. Executive Summary 1 INTERNSHIP REPORT/VO THI KIM NGAN Nowadays, banking is one of the most important financial channels for the economy. Improving and expanding banking activities are the orientation and guideline for banks to survive and grow in the increasingly fierce competition. Among that, credit activity is a vital field in the bank and decides most of other activities in the national economy. It is also a main source of creating profitability and decides the existence and development of the bank. For a long time, most banks only focused on lending the production business but not much paid attention to the final stage of producing – consuming. Actually, when society increasingly grows, not only the enterprises need capital to make business and expand the current market but the individual need more capital than ever before as well. People’s living standards are more and more improving, not only in need of basic necessities like food, clothes but also tons of needs both in mental and physical life. People’s psychology has changed now, which considered borrowing as the need to use the goods before liquidity. To meet that need, banks have developed a new credit mode: consumer loans. It contributes to raise bank’s revenue. It means consumer loans help individual obtain capital to improve their lives. After studying the activities of AFTD for a period of time, I found out that the bank was concerned about the consumer loans. However, it has not been actually the major activity of the bank. Therefore, continuing research and offering solutions would bring enormous significance for both theoretical and practical aspects for the diversification of the bank’s activities. For this reason, the issue “EVALUATION OF CONSUMER LENDING ACTIVITIES ATVIETNAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT” has been chosen for my internship report. This report mainly aims at: • Referring factors affecting the development of consumer loans • Analyzing figures and data relating to the operations of consumer loans at AFTD • Describing the AFTD’s current situation of consumer loans • Evaluating the effectiveness of those activities • Suggesting some solutions to improve the branch’s competitiveness. 2 INTERNSHIP REPORT/VO THI KIM NGAN Methodology 1. Desk research: the study is based on figures and information from AFTD of Cau Giay branch’s internal data and theory mainly from David Cox (1997), Modern Banking Operations 2. Other secondary data: information of Agribank, AFTD, Vietnam’s economy and policies, etc were collected from the TV, internet, newspaper, magazines … 3. Primary data: Interviews to executive managers at the department of Credit Activities in AFTD, as well as staff who directly involves in consumer loans operations. Hanoi, April 29 th , 2014 3 INTERNSHIP REPORT/VO THI KIM NGAN TABLE OF CONTENTS TABLE OF CONTENTS 4 List of tables 5 List of figures 6 Part 1: Introduction about Agribank 7 1.1.Overview of Agribank 7 1.1.1.Brief history 7 1.1.2.Nature of the organization 8 1.1.3.Business volume 10 1.1.4. Main products and services 10 1.1.5. Competitors 11 1.2. Organizational structure 12 1.2.1. Organizational chart 12 1.2.2. Number of employees 13 1.2.3. Main offices 14 1.2.4. Introduction of all departments 14 Part 2: Description of the internship 16 2.1.The establishment of Cau Giay Branch of Agribank and the fifth transaction department 16 2.1.1.The establishment of Cau Giay Yen Branch of Agribank 16 2.2.Internship activities 17 2.2.1.Training phase 17 2.2.2.Internship contents 18 2.2.3.Internship process 18 2.3.Critical analysis 18 Part 3: Recommendations & Conclusion 21 3.1. Some recommendations for the development of consumer lending at AFTD 21 3.2. Conclusions 25 Reference 27 4 INTERNSHIP REPORT/VO THI KIM NGAN List of tables 5 INTERNSHIP REPORT/VO THI KIM NGAN List of figures 6 INTERNSHIP REPORT/VO THI KIM NGAN Part 1: Introduction about Agribank Understanding the importance of the internship to the later professional career, I chose the fifth transaction department – Cau Giay Branch, directly under the control of Vietnam Bank for Agriculture and Rural Development as my internship location from February 25 th to May 18 th , 2014. It is really an ideal working environment for me when my major is English – Finance and banking. Following is the general introduction of my internship milieu. 1.1. Overview of Agribank 1.1.1. Brief history AGRIBANK (Vietnam Bank for Agriculture and Rural Development) has become one of the leading commercial banks playing a major role in making investment in agricultural economic development in rural areas, together with other sectors of Vietnam economy. • Full Name: Bank of Agriculture and Rural Development Vietnam • International transaction name: Vietnam Bank for Agriculture and Rural Development • Abbreviated name : AGRIBANK • Headquartered at: 18, Tran Huu Duc, My Dinh, Tu Liem, Hanoi. • Website: www.agribank.com.vn • Email: webmaster@agribank.com.vn Agribank's milestones in development: 1988: Established under the name of Agricultural development Bank of Viet Nam by decree No. 53/HDBT dated 26 March, 1988 of the Council of Ministers (now the Government). 1990: Changed name to Vietnam Bank for Agriculture (VBA) 1991: Established the representative office of Vietnam bank for Agricultural in Ho Chi Minh City. 7 INTERNSHIP REPORT/VO THI KIM NGAN 1992: established VBA provincial branches. 1994: Approved new innovative management system model of the Agribank and began to be organized into a State-owned Corporation. 1996: Changed name to Vietnam Bank for Agriculture and Rural Development (AGRIBANK) 2001-2010: Implemented the plan of bank restructuring. 2001: Became the leading commercial bank in Vietnam, with the most extensive network of branches in rural areas. 2002: Became a member of APRACA and the Confederation International du Credit Agricole (CICA). 2009: Utilized modern information technology to develop and introduce modern banking products and services, payment connectivity with the State Treasury, in coordination with Taxation and Customs Offices for the collection of state budget; 2010: Be in Top 10 of 500 largest enterprises in Vietnam and continuously to be the largest Financial Institution in Vietnam. 2011: Completely changed into Ltd company with 100% capital of state and became the leading credit institution for pilot lending for the new rural construction 2012: Won the title such as: Top 10 biggest enterprises in Vietnam – VNR500; Top ASEAN Enterprise, Top brand name of ASEAN; Top Bank for Payment; Top Banks of Vietnam. 2013: Held the 25 year universal (March 26, 1988 – March 26, 2013) 1.1.2. Nature of the organization Agribank was established by Decree No. 53/HDBT dated 26 March, 1988 of the Council of Ministers (now the Government) with the reform of the financial system and the introduction of commercial banks in Vietnam. The Agricultural Development Bank of Vietnam was created out of the State Bank of Vietnam (SBV). After being established in November 1990, the Vietnam Bank for Agriculture was by law a legal entity having universal banking functions with major 8 INTERNSHIP REPORT/VO THI KIM NGAN focus on agricultural sectors and rural areas, and responsible for its own finance, operations. On 30 July, 1994, by Decision No.160/QD-NHN9, The Governor of the State Bank of Vietnam approved new innovative management system model of the Agribank, on that basis, the General Director of VBA specified in writing in document No. 927/TCCB/VBA dated 16 August, 1994 which detailed as: the Vietnam Bank for Agriculture had two levels: Advisory level and Operational level. This was truly a turning point in the organizational structure of VBA and set the foundation for business operations of the existing Vietnam Bank for Agriculture and Rural Development. On March 7 th , 1994 pursuant to the Decree No 90/TTg of the Prime Minister, VBA began to be organized into a State-owned Corporation with the organizational structure consisting the Board of Directors, General Director, assisting apparatus including apparatus for internal control, subsidiaries including dependent accounting business units, independent accounting business units, and executive and non-executive functions were clearly separated, in which Chairman of Board of Directors and General Director were two separate roles. On 15 November, 1996, under the new name, Agribank is allowed to carry out commercial banking activities but with a focus on investment for agricultural sector and rural areas by providing medium and long-term loans for infrastructure development, particularly agriculture, fishery, forestry, contributing to the cause of industrialization and modernization of agriculture and rural development. In 2002, Agribank expanded operation at home market as well as strengthened international relations. In the context of the world economy and Vietnam in particular facing many difficulties in the economic crisis, Agribank remains sustainable development and growth. Agribank had the total assets of VND 617,859 billion (approximately 20% GDP), rose by 10% compared with 2011. As the biggest commercial bank in Vietnam in terms of fund resources, assets, and the bad debts are controlled. 9 INTERNSHIP REPORT/VO THI KIM NGAN 1.1.3. Business volume 2013 (VND billion) Total asset 560,000 Total fund resource 513,000 Equity 29,605 Total outstanding loans 469,000 Table 1: Business volume Operating network: 2,400 branches and transaction offices nationwide; 1,033 correspondent banks in 92 countries and territories and a customer base of over millions customers. • Personnel: 42,000 staffs 1.1.4. Main products and services - Accounts and deposits: accepting deposits and mobilizing savings with the diver, attractive interest rates such as promissory notes, bonds, certificates of deposit - Loans: lending in short, medium or long term, daily life consumption, investment trusts; mortgage lending by valuable papers, co-sponsored loans, lending by issuing credit cards - Guarantee: implementing businesses; payment guarantees; bid guarantee; contract performance guarantee, contract of guarantee, guarantee confirmation. - Domestic payment services: domestic money transfer services, service of collection and payments; state budget collection services, bill payment services, automatic collection services - Securities: the point of providing Agriseco’s services, implementing transactions of opening accounts, securities registration, securities trading 10 [...]... budget and settlement in concord with regulation; managing, using technology devices, informatics to support for business operation Computing Department – recapitulating, count and store data, information relating to bank s activities; handling arising operations that are in relation to posting, statistic accounting; complementing reporting regime, statistics and information in concord with regulation;... information, research and investigation on factors related to consumer loans The bank staff needs to study and fully understand the general information of macro context to consumer lending activities Those are all about guidelines and policies of the government about both the economic - social changes and the financial – banking sector domestically and internationally Consumer lending activity is sensitive... 1997, separated from Agribank Tu Liem branch in Hanoi and changing into level 2 branch under the control of the bank for Agriculture and Rural Development in Hanoi Right from the beginning of its operation, though was difficult due to the lack of manpower and facilities , but the leadership and staff of the branch has made great efforts to achieve good results and significant contributions to the development. .. NGAN Collecting and analyzing information comprehensively and accurately gives the basis for AFTD to find out appropriate strategies to build up personal credit activities in the future 3.1.2 Developing a proper and attractive strategies for consumer loans to customers For the easy access of customers to the bank' s capital, the most convenient and also ensuring the benefits and efficiency of business,... branch to perform and regulation of - AGRIBANK The branch has a trust and reputation of many company and local people, which creates chances to enhance the lending demand and profitability THREATS 19 INTERNSHIP REPORT/VO THI KIM NGAN - There are many other transaction office in the same sector so the branch have to - face stiff competitions The tight monetary policy of the State to curb inflation causes... growth of the whole system So, what are the solutions that help AFTD not only meet and expand the amount of customers both in quantity and quality but also further strengthen the operations of consumer loans Based on the research on consumer loans and the real situation at AFTD, I would like to offer some suggestions to promote the consumer loans as follows: 3.1.1 Perfecting the policy of information,... improvement strategy; complementing marketing strategy, information propaganda, building up brand launching plan 1.2.5 Comments on the organizational structure of Agribank Agribank has totally more than 2300 branches and 9 subsidiaries It can be said that, with the number of branches and subsidiaries, Agribank needs a very complicated organizational chart to describe accurately the operational structure... fluctuations in economic, political, social changes; so, the macro information will hold the important part in the development of consumer loan in the bank Also, AFTD needs to investigate the factual cases of competitors consumer lending In reality, most domestic banks including state- owned banks or joint- stock ones, conduct consumer loans activities extensively The head office should collect information... development of Agribank In 2004, the branch moved to new headquarter at 99 Tran Dang Ninh with full equipment has facilitated to expand more the operations of the branch, creating momentum for the future development On 12/01/2006, the State Bank of Vietnam issued Decision No 35 upgrade Cau Giay Branch of Agribank from branch level 2 to level 1 belonging Agribank From which, on 13/01/2006, CEO of Agribank... much consideration to the field of consumer credit, this form of credit is still underdeveloped, accounting for the modest proportion of total outstanding loans under the situation of harsh competition in the context of international integration, Vietnamese commercial banks in general and AFTD in particular must diversify forms of credit to spread, limit and control risks at the lowest level In short, . significance for both theoretical and practical aspects for the diversification of the bank s activities. For this reason, the issue EVALUATION OF CONSUMER LENDING ACTIVITIES ATVIETNAM BANK FOR AGRICULTURE. Name: Bank of Agriculture and Rural Development Vietnam • International transaction name: Vietnam Bank for Agriculture and Rural Development • Abbreviated name : AGRIBANK • Headquartered at: . of commercial banks in Vietnam. The Agricultural Development Bank of Vietnam was created out of the State Bank of Vietnam (SBV). After being established in November 1990, the Vietnam Bank for