To innovate the private capital in order to create harmoniously competitive environment for the HCM city commercial banks, vietnam

INDEX INTRODUCTION CHAPTER I PROBLEM STATEMENT AND ITS BACKGROUND 1.1 PURPOSE OF STUDY 1.2 INTRODUCTION 1.3 PROBLEM STATEMENT 1.4 IMPORTANCE OF STUDY 1.5 HYPOTHESES OF THE STUDY 1.6 SIGNIFICANCE OF THE STUDY 1.7 SCOPE AND DELIMITATION OF THE STUDY 1.8 CONCEPTUAL FRAMEWORK 10 1.9 RESEARCH INSTRUMENTS 10 1.10 TREATMENT OF DATA 11 1.11 RESEARCH PROCEDURES 12 1.12 RESEARCH APPROACH 14 CHAPTER II SURVEY OF RELATED LITERATURE AND STUDIES 15 2.1 SOME GENERAL ISSUES OF STOCKHOLDER’S EQUITY OF COMMERCIAL BANK 16 2.1.1 Overview of the equity capital of commercial bank 16 2.1.2 Constitute stockholder’s equity of commercial bank 17 2.1.3 The characteristics of the equity capital of commercial banks 19 2.1.4 Basic functions of stockholder’s equity of commercial banks 20 2.1.4.1 Stockholder’s equity performs responsibility function of asset for depositor 20 2.1.4.2 Stockholder’s equity performs investment function to meet requirements of bank business operations 21 2.1.4.3 Stockholder’s equity performs function to set up limitation for business operation of bank 21 2.2 REQUIREMENTS TO ENSURE CAPITAL SAFETY IN BUSINESS OPERATIONS OF BANK 22 2.2.1 General provisions on capital safe regime in business operation of bank 22 2.2.1.1 Regulation of capital safe concepts 22 2.2.1.2 Regulations of determination regime of safety stockholder’s equity 24 2.2.1.3 The policies about shareholder 26 2.2.1.4 Legal regulations about adjustment these assess safety of capital standards in the country 28 2.2.2 Factors impact the safety-capital assessment Standards 32 2.3 DUTY, CONTENT, MODEL AND MANAGEMENT CONDITIONS OF OWN FUND IN TRADING OPERATIONS OF COMMERCIAL BANK 35 2.3.1 Duty of own fund management of commercial bank 35 2.3.2 Content of own fund management of the commercial bank 35 2.3.3 Models of managing the own fund of commercial bank 37 2.3.3.1 Own fund management following traditional model 38 2.3.3.2 Own fund management following the model associated with risk ratio 39 2.3.3.3 Funds management following ROIF and ROFL model 40 2.3.3.4 Capital management in internal financial growth model 45 2.3.4 Conditions on the own fund management of the commercial bank 47 2.4 ROLE OF RISK AND INCOME MANAGEMENT IN THE MANAGEMENT OF OWN FUND OF COMMERCIAL BANK 48 2.4.1 Role of risk management 48 2.4.1.1 Risk management on operations 48 2.4.1.2 Risk management in credit operations 49 2.4.1.3 Risk management in organizational structure 50 2.4.1.4 Management of risk affecting from outside 50 2.4.2 Role of income management 51 2.4.2.1 Management of factors affecting directly the income 51 2.4.2.2 Management of factors affecting indirectly the income 52 2.4.3 Role of general management of risk and income 52 2.4.3.1 General management of risk and income in short terms 52 2.4.3.2 General management of risk and income in long terms 54 2.5 EXPERIENCES LEARNED BY REGIONAL AND WORLD BANKS FROM THE OWN FUND 56 2.5.1 Experiences of bank own fund management at macroscopic scale 56 2.5.1.1 In the world 56 2.5.1.2 In Asian region 57 2.5.1.3 In Asian 58 CHAPTER III: RESEARCH METHODOLOGY 60 3.1 MANAGEMENT REAL SITUATION OF STOCKHOLDER’S EQUITY OF COMMERCIAL BANKS AT VIETNAM 61 3.1.1 Economic context before requirements of stockholder’s equity standardization 61 3.1.1.1 World economic context 61 3.1.1.2 Economic context of Vietnam 62 3.1.2 Specific characteristic of activities of commercial banks in Vietnam 64 3.2 MANAGEMENT REAL SITUATION OF STOCKHOLDER’S EQUITY AT JOINT STOCK COMMERCIAL BANKS AT HO CHI MINH CITY 65 3.2.1 General real situation in management of stockholder’s equity at joint stock commercial banks at Ho Chi Minh City 65 3.2.1.1 The holding structure of business financial sources 65 3.2.1.2 Business financial operations 66 3.2.1.3 To ensure the capital safety targets 70 3.2.1.4 Liquidity 72 3.2.1.5 The quality of account outstanding for loan 74 3.2.1.6 Financial status of business 76 3.2.2 Analysis of the financial capacity of joint stock commercial banks at Ho Chi Minh City 79 3.2.2.1 The changes according to specific characteristic of development 79 3.2.2.2 The changes in the operation 81 3.2.2.3 The change in resistance capacity of risk 86 3.2.2.4 The changes in the quality of operation 89 3.2.2.5 Assessing financial capacity of the joint stock commercial banks at Ho Chi Minh City 92 3.2.3 Analysis of effective in application of assessment standards for safety stockholder’s equity in accordance with regulations of BIS in the Asian commercial banks (ACB) 95 3.3 RESULTS AND LIMITATIONS IN THE MANAGEMENT OF STOCKHOLDER’S EQUITY AT JOINT STOCK COMMERCIAL BANKS AT HO CHI MINH CITY 102 3.3.1 Achieved results 102 3.3.2 Constraints in the own fund management in HCMC stock commercial banks 103 3.3.2.1 General assessment on constraints 103 3.3.2.2 Assessment on the constraints of the own fund management aspect 104 3.3.2.3 Assessing the limitations in terms of governance, shareholder management 104 3.3.2.4 Assessing the limitations in terms of operation safety 105 3.4 THE MAJOR CAUSES OF SHORT COMING INMANAGEMENT OF STOCKHOLDER’S EQUITY AT JOINT STOCK COMMERCIAL BANKS AT HO CHI MINH CITY 106 3.4.1 The inadequacies of the business environment 106 3.4.2 Weaknesses in risk management 106 3.4.3 Weaknesses in the management and administration 107 3.4.4 Shortcomings in the financial ability 108 3.4.5 Shortcomings in the fund ownership structure 109 3.4.6 Weaknesses in the management and supervision of State bank 109 CONCLUSION CHAPTER 111 CHAPTER IV: INNOVATION MANAGEMENT OF AND ENVIRONMENTAL STOCKHOLDER’S CREATING JOINT STOCK EQUITY COMPETITIVE COMMERCIAL BANKS AT HO CHI MINH CITY 112 4.1 DEVELOPMENT ORIENTATION AND INNOVATION OF STOCKHOLDER’S EQUITY MANAGEMENT FOR JOINT STOCK COMMERCIAL BANKS AT HO CHI MINH CITY IN PHASE 2007-2020 113 4.1.1 Demand of minimum stockholder’s equity for development target in phase from 2010 to 2020 113 4.1.1.1 The socio-economy development goals of HCMC 113 4.1.1.2 Forecast of minimum capital requirements for banking at Ho Chi Minh City 113 4.1.2 Managing the average stockholder’s equity growth process for joint stock commercial banks HCMC 116 4.2 MANAGEMENT INNOVATION SOLUTION OF STOCKHOLDER’S EQUITY FOR JOINT STOCK COMMERCIAL BANKS AT HO CHI MINH CITY 123 4.2.1 Amendment of institutions, determining the model and positioning target market 123 4.2.1.1 Modify institutions, equity ownership 123 4.2.1.2 Development of banks according to versatile financial corporation model 124 4.2.1.3 Reposition the active target market 126 4.2.2 Renewal of risk management mechanism under modern management technology 127 4.2.2.1 Complete overhaul of the factors affecting the risk management mechanism 127 4.2.2.2 Innovation of accounting systems, internal audit in accordance with international standards 129 4.2.2.3 To improve risk prevention mechanism 131 4.2.3 Renew the capital safe management mechanism in accordance with requirements of the BIS 133 4.2.3.1 Innovation of structure to determine stockholder’s equity safely 133 4.2.3.2 Restructuring of all activities in accordance with capital safe requirements 135 4.3 EXPANDING THE FRAME OF ASSESSMENT RATE OF SAFE STOCKHOLDER’S EQUITY 137 4.4 SYSTEM APPLICABLE CAPITAL TARGETS ASSESSED SAFETY SELF-DIVERSITY 141 4.5 IMPLEMENTING THE MULTI-LAYERED MECHANISM FOR MANAGEMENT AND MONITORING CAPITAL ADEQUACY 143 4.6 BUILDING THE REGIME OF SAFETY CAPITAL DISCIPLINE STRICTLY AND CLEARLY 145 4.7 PERFECTING THE MECHANISM OF INSPECTION AND MONITORING CAPITAL ADEQUACY 146 4.8 PROPOSING SOLUTIONS TO SUPPORT, INNOVATE, MANAGE EQUITY 148 4.8.1 Proposing to Vietnamese state 148 4.8.2 Recommendations for the State Bank of Vietnam 151 4.8.3 Recommendations to People’s Committee of Ho Chi Minh city 155 CONCLUSION OF CHAPTER 157 CHAPTER V: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 158 5.1 SUMMARY OF THE STUDY 159 5.2 CONCLUSION 159 5.3 RECOMMENDATIONS 161 5.4 OPPORTUNITIES FOR FURTHER RESEARCH 161 REFERENCE 162 A ROPOSED INTERVIEW AND SURVEY QUESTIONNAIRE 162 B PROPOSED BIOGRAPHY 165 LIST OF TABLES Table (1.1): The profitability ROIF and ROFL 42 Table (1.2): Debt balance and profitability of ROFL 43 Table (1.3): Analys debt balance and profitability of ROFL 44 Table (1.4): The rate share holder in commercial foreigner banks in Asean countries 58 Table (1.5): The rate keep asset foreign bank in Asean countries from 90 – 01 59 Table (1.6): Amount of foreign banks and commercial banks in Asean countries from 90 – 01 59 Table (2.1): The holding structure of business financial sources of Commercial banks HCM City 12/31/2010 65 Table (2.2): Operating commercial banks at Ho Chi Minh City in 10/09 66 Table (2.3): Structure of business financial capitals of Commercial banks HCM City to 31/12/2010 68 Table (2.4): Safe equity of Joint stock commercial banks 12/31/2010 71 Table (2.5): Liquidity of commercial banks at Ho Chi Minh City in 31/12/2010 73 Table (2.6): The structure of financial collection sources commercial banks at Ho Chi Minh City in 2010 76 Table (2.7): Business financial result of Commercial banks HCM City in 2010 77 Table (2.8): The development situation according to level of capital of commercial banks at Ho Chi Minh city from 2004-2009 80 Table (2.9): Classification of quality market of commercial banks at Ho Chi Minh City from 2006 – 2009 81 Table (2.10): Situation in Merger, Acquisition of commercial banks at Ho Chi Minh City from 97 – 06 83 Table (2.11): Situation buy share for foreign partner of joint stock commercial banks in HCM City to 12/31/2010 85 Table (2.12): Equity and fund percent on risk Assets of five joint stock commercial banks in HCM City in 2010 87 Table (2.13): Evolution of profitable asset mechanism on the total assets of the joint stock commercial banks at HCMC from 2005 – 2009 89 Table (2.14): Situation of transferring profitable assets structure of joint stock commercial banks in HCM city from 04 – 09 91 Table (2.15): Financial capacity of the joint stock commercial banks at Ho Chi Minh City in 10/09 92 Table (2.16): Change in financial capacity of the joint stock commercial banks in HCM city from 06-10 94 Table (2.17): Analyzing the method of own fund determination so as to calculate the minimum safe rate following the old and new calculation 96 Table (2.18): Analyzing the method of internal risk determination following the old and new methods 97 Table (2.19): Analyzing the method of external risk determination following the old and new methods 99 Table (2.20): Analyzing the method of determining the interest and foreign currency dealing contracts following old and new calculation methods 100 Table (2.21): Analyzing the method of determining the small equity and risk asset contracts following old and new calculation methods 101 Table (3.1): The minimum capital requirements for banking operations in the period 2009 – 2018 114 Table (3.2): Evaluation of environmental conditions and economic development goals bank from 2010 – 2015 116 Table (3.3): The thesis proposed overall financial plan from year 2010 2014 for the City as commercial banks 119 Table (3.4): Additional average equity capital from internal resources for the commercial banks in Ho Chi Minh City 2010 – 2014 121 Table (3.5): Expected additional demand of average equity from external sources of capital for commercial banks in Ho Chi Minh City from 2010 to 2014 122 Table (3.6): Swapping the risk of loss (SWAP) 136 Table (3.7): Build the frame rate of assessment equity and safety for the commercial banks 138 Candidate’s full name: Nguyen Thanh Nam This method will motivate social capital which increases funding for area businesses and households, helps to push back corruption' interference and prevents victims of usury However the form should have the appropriate conversion, to reduce the risk of indirect funding should be through the private banks with capital constraints and more rigorous credit limitation;  Increasing the interaction between markets, including deposit insurance market, insurance and loan Expanding the new mechanism provides a bridge between the financial and the non-financial market, organized and unorganized market, bank and non-bank financial institutions, controlled and non-controlled bank institutions, distributing each group into scale, the level of specialization and the powerful finance;  Formation of uniform banking and financing markets, based on the basis of the development orientation and quantitative competitiveness for each bank group, division the Bank operations quickly, set the competitive solution, formed the general development strategy for whole system regardless of their composition, location and create competitive environment equality;  Issued the support and development policy of supply and demand market, encourage to access to appropriate technologies to achieve international competitiveness, promote technology transfer from universities, research institutes There will be the major changes from monetary policies, the legal mechanism to contribute to innovation in support of joint stock commercial banks to develop better and more efficient operations;  Enhancing the incentive investment measures, attracted the contributions from private, public and enhancing the role of the competition authority for banking activities To promote the development of the new joint-stock commercial bank model should soon issue the policies with a larger scope of activities, encouraging entrepreneurship and competition heavily;  Enacting organize management legislation for commercial banks, being a basis for the joint stock commercial banks to build a new Charter, clarified Page 152 Major in: Financial - Banking Management economy Candidate’s full name: Nguyen Thanh Nam good required governance, risk control, the transparency principle of borrowing between the shareholder groups to facilitate more decision right in bank about the standards Representative, authorized by the stockholders, the Board  Enacting regulation about overdue debt determination according to Basel II standards, in which require specified sorting standards in detail, indicating the definition of the debt classification clearly, specified each step, determine procedure, equations as the types of debt to facilitate the supervision and monitor regulation all of operating capital adequacy standards completely ;  Regulations on the new joint stock commercial bank establishment, identify the essential clearly, economic efficiency, scientific evaluation results seriously, especially on the scale and capital formation capital solutions, make sure the joint stock commercial bank formed has sufficient capital to operate Specify the limits of capital in associated with market size, market share, expanding extension, diversified operation and products;  Expanded stock ownership rules for foreign investors by 40 percent, raising the holding rate of each individual up to 20% as enterprises, or the maximum holding rate up to 90% but the holding rate will be narrowed gradually over time Let the joint stock commercial bank issues shares abroad, extends the proportion of shares to the public and diversifies debt instruments;  Extending the investment’s limitation: Joint-stock commercial Banks (JSCB) are accepted to invest over 50% of enterprises’ equity They have a right to establish subsidiaries if having over 51% equity or joint venture companies if having lower than 51% equity For joint-stock commercial banking groups was founded under parent-subsidiary model which should clearly specify the level of capital investment into subsidiaries, associates, business financial services, the right to dominate its subsidiaries through capital technology, brand, market; Page 153 Major in: Financial - Banking Management economy Candidate’s full name: Nguyen Thanh Nam  Creating conditions to JSCB enhance their competition, preventing the foreign banks have a small size or unhealthy financial into Vietnam, extending minimum capital, specifically: For the joint venture banks must be over 20 billion dollars of their equity, the foreign banks must be over 10 billion dollars of equity, operating period of 99 years, the branches of parent foreign banks must be over 50 billion dollars For the foreign banks operated prior to this regulation will adjust the scope of activities by the appropriate instrument barriers;  Developing an early warning system of credit risk and remotely process monitoring in macro level, providing information to prevent public risk, maintaining limited credit growth consistent with monetary policy The institutions about credit insurance is constructed and completed, completing inspection process, supervising by international standards Establishing the intervention mechanism of the government and the national deposit insurance for each system, maintaining orderly financial system on the internet;  Creating more conditions for the foreign investors, allowing transfer money into securities trading and freedom transferring of foreign currency are accepted without hoarding more than year, simplified process to open current accounts, allowing direct transactions with securities companies in foreign currencies, limiting conversion costs, professional accounts for security businesses are allowed to open in commercial banks;  Enhancing capacity of monitoring agencies, consistency, standardized the monitoring body of evaluation capacity, objective attitude, accuracy, the reasonableness of measurement standards, levels of delimitation of capital components, types of activities, professional scale, creating conditions for monitoring agencies have adequate legal and technology solutions to perform functional and professional managements;  Establishing the rapid response mechanism with bad situations, supporting the banks, financial institutions, forming the rapid response force under the participation of SB, local government, banking association, Page 154 Major in: Financial - Banking Management economy Candidate’s full name: Nguyen Thanh Nam financial association… Developing policies, regimes, specific supporting conditions in order to enhance the function of financial supervision and improve the responsibilities of JSCB 4.8.3 Recommendations to People’s Committee of Ho Chi Minh city - Stimulating foundation and development of leading JSCBs, as a basis of orientation to expand the inter-bank market, defining the common standards for market… Creating conditions for big JSCBs participate, establish and develop the monetary market, opening the payment functions through the bank, as a tool for risk prevention and responding the demand for capital and investment; - Permitting the establishment association of JSCBs, in the direction of professional management on jobs, careers, aggregation the business world, well financial reputation and ethic in order to promote professional development, protect the legitimate interests and create conditions for JSCBs to expand with a global scale Enhancing the role of association in the fluctuation of forecasting, development trends, designing the new services in order to build the competitive advantages for community; - Extending the functions of Association of JSCBs, providing legal information of market, consulting the business technology, solving relationships, finding some funds from international organization, consulting the business opportunity… Creating conditions for JSCBs plan the activity strategies, develop marketing communication Association is allowed to organize professional training programs, providing certificate, issuing business card, license card base on specific standards or banning the banks have illegal activities; - Increasing the power of association of JSCBs on building structure to exploit market, stratified of capital’s attraction, in the direction of allocation JSCBs which have a small scale concentrate on customers who have a low value of exploitation, a simple demand JSCBs have to base on the value of customer groups, exploit the adding value in order to end the freedom development trend for everyone when they exploit; Page 155 Major in: Financial - Banking Management economy Candidate’s full name: Nguyen Thanh Nam - Building the common brand’s development strategies for JSCBs in Ho Chi Minh city, creating the specific characteristics to highlight the consistency about products, services and ad programs, attracting the participation of other associations to link order to develop comprehensively In brand’s development schedule, they need to have a tax exemption policy certainly Allowing JSCBs have more financial autonomy in the use of brand’s development costs; - Encouraging the supports from the international consulting organization, to help the commercial banks deeply implement modernization programs by international standards, the new changes from administrative activities, human resource development, modernizing the information system to improving the quality of the body for the institutions and technology; - Establishing the Steering Committee for innovation and development financial credit market, to motivate, create conditions to develop the banks like company, group and supermarket models On a basis of re-evaluation the suitability of overall planning to adjust objectives, prepare the specific banking business mechanism, define frameworks and standards must be complied to lowest limit some negative impacts and short-coming of market; - Identifying schedule of the healthy environment of banking activity, promoting the reform of procedures and bureaucracy, modernizing legal system, building simple contract with high effectiveness, clarifying property rights, transfer rights and guaranty the loans, accelerating for supplying Red Book for residents and businesses to facilitate for market transactions, formation the relating markets to increase the ability to metabolize real estate and movable asset; - Promoting JSCBs combine with commercial organizations, building FFTPOS (from Thailand’s experiences) base on harmonious ensuring between the involving parties or linking with other JSCBs to found the association of aging credit risk, the association of aging unfair competition in order to protect the common interests of community Page 156 Major in: Financial - Banking Management economy Candidate’s full name: Nguyen Thanh Nam CONCLUSION OF CHAPTER 4: In the environment of globalization, development and innovation management capital equity by the advanced security standards as a condition for the joint stock commercial banks and development of competition but that does not mean banks to trade at all costs For the application of safety assessment standards effective capital, innovation process management in its own capital banks are required to ensure the sequential, comprehensive and consistent with the actual conditions However, innovation management equity in the international standards of commercial banks in Ho Chi Minh City is only truly successful if there are changes and the strong similarities between the management agencies and supervision of banks in radically innovative content, strategic policies and mechanisms to manage, monitor and evaluate capital adequacy in line with the roadmap for the implementation of international commitments It also needs the support of the State of the Reserve Bank of Vietnam and Ho Chi Minh City People's Committee Compete successfully in terms of integration is difficult but by no means impossible, the problem is the determination to renew and consistency of all sectors and levels, and the commercial banks themselves Page 157 Major in: Financial - Banking Management economy Candidate’s full name: Nguyen Thanh Nam CHAPTER V SUMMARY, CONCLUSIONS AND RECOMMENDATIONS APPENDIX Page 158 Major in: Financial - Banking Management economy Candidate’s full name: Nguyen Thanh Nam 5.1 SUMMARY OF THE STUDY HCM City joint stock commercial Banks can have through the application of the BIS ’s standard system of evaluating Base I and II HCM City joint stock commercial Banks prepare for BIS’s standard system of evaluating Base I and II application in terms of organizational readiness, perceived ease of use and external pressure (customer demand) BIS’s standard system help HCM City Joint stock commercial Banks enhancecapacity through its marketing tools 5.2 CONCLUSION In summary, the thesis have implement the purposes which put forward the systems of innovate solution of private capital management completely, according to advanced international Standards of Evaluating Capital safety For the practicability of implementing this contents, the author wish that many research work will be implemented in order to build many more specific and particular solutions Beside, financial liberalization and international integration in banking bring for a so great benefit but also contain considerable risks Should there be no proper perceptions in this issue it would result in unpredictable outcomes Therefore, the researching about this topic is a unbiased require and burry up in order to help the policy planners to have the specific and systematic vision to bring the most correct solution for to have the part in success of the International assimilation processing of the Commercial banking in HCM city in particular and in Vietnam in general The thesis has contributed some important issues the following: Preliminary analysis to clarify the role and importance of innovation management equity in the banking business before the safety requirements of sustainable development and competitiveness in international economic integration Depth analysis of equity theory, relationship management with equity capital requirement to observe the capital adequacy standards, as well as the Page 159 Major in: Financial - Banking Management economy Candidate’s full name: Nguyen Thanh Nam importance of managing their own capital requirements effectively to improve safety capital adequacy, and has drawn some lessons from research management experience in equity capital of banking activities in the country On the basis of state survey manager with equity in the joint stock commercial banks of Ho Chi Minh City, analyzing the achievements gained, the surface is limited, the thesis has shown the cause of existence to be solved Based on theoretical analysis and practical experience, from requirements development goals of economic and banking sector in the province, based on scientific grounds, thesis forecast demand and plan manage the growth process the average equity, defined objectives, principles and management innovation-oriented equity capital for joint stock commercial banks at Ho Chi Minh City For Joint stock commercial banks at Ho Chi Minh City, the thesis proposed solutions to management innovation in the equity capital adequacy standards internationally, in accordance with actual conditions of each bank, facilitate development of an full, effective, stable and sustainable, including: - Modify the institutional ownership of equity in accordance with the changes of business law, development-oriented model and target market positioning - Renewing comprehensive risk management mechanism in modern technology - Renew the management mechanism of equity security by the technical solution - Develop strategic restructuring of equity ownership sustainability, taking the labor and expertise of foreign strategic partners to target the heart For the management agency, banking supervision, in order to improve management, supervision and promotion of commercial banks in Vietnam quickly implement innovative standards of capital adequacy management success, thesis proposed solutions to strengthen the role of macro management in accordance with the requirements of economic development and roadmap for implementation of international commitments, namely: Page 160 Major in: Financial - Banking Management economy Candidate’s full name: Nguyen Thanh Nam - Orientation program, content, mechanisms and policies for managing and monitoring capital adequacy standards under Basel - Renewal rate systems, targets and methods to evaluate the safety of own capital - Innovation management mechanisms, monitoring and evaluation of capital adequacy In short, the thesis has achieved the goal of proposing a system of innovative management solutions to equity under the standard comprehensive assessment of capital adequacy of internationally advanced For the above implementation feasible in practice, the authors hope will have more work to the next building specific solutions, in more detail 5.3 RECOMMENDATIONS Thesis proposals to the State of Vietnam, State Bank of Vietnam, Ho Chi Minh City People's Committee supported a number of measures to facilitate the implementation of innovative management of the equity of commercial banks into the City soon, such as: - To strengthen the legal system related to the enforcement of safety standards to international capital - To improve the management mechanism of state supervision and consultancy support - Formation of professional organizations, social organizations and set the direction, support and counseling supervision of capital adequacy 5.4 OPPORTUNITIES FOR FURTHER RESEARCH In short, the thesis has achieved the goal of proposing a system of innovative management solutions to equity under the standard comprehensive assessment of capital adequacy of internationally advanced For the above implementation feasible in practice, the authors hope will have more work to the next building specific solutions, in more detail Page 161 Major in: Financial - Banking Management economy Candidate’s full name: Nguyen Thanh Nam REFERENCE A ROPOSED INTERVIEW AND SURVEY QUESTIONNAIRE Letter to small & medium enterprise respondents (for interview) BULACAN STATE UNIVERSITY PROGRAM OFDOCTOR OF PHILOSOPHY IN BUSINESS ADMINISTRATION ********** Date…… Dear Valued Organization, Dear Sir/Madam, Warmest Greetings, I am Nguyen Thanh Nam, Lecturer – Hochiminh City I am pursuing a Doctoral Program in Business Administration, major in Financial Business at Bulacan State University-The Philippines I am doing my dissertation entitled “to innovate the private capital in order to create the harmoniously competitive environment for the HCM city commercial banks, Vietnam” l The study is to obtain a better understanding of the current status of Business-to-Business in the safe activities of the enterprises thus seeking for solutions for enhancing the management capacity for Vietnamese commercial bank May you allow me to interview you once, regarding the issues mentioned in the attached questionnaire Rest assured that your identity and responses will be held in strict confidentiality and for research purposes only Your kind attention to this request will be highly appreciated I would like to express my deepest gratitude and sincerest thanks for your help, time, patience and cooperation Thank you very much Page 162 Major in: Financial - Banking Management economy Candidate’s full name: Nguyen Thanh Nam Yours Respectfully, Nguyen Thanh Nam Email: nam.nguyenthanh@hoasen.edu.vn; Cell phone: (84)-983388926 Letter to commerical Banks respondents (for survey questionnaire) BULACAN STATE UNIVERSITY PROGRAM OFDOCTOR OF PHILOSOPHY IN BUSINESS ADMINISTRATION ********** Date Dear Valued Organization, Dear Sir/Madam, Warmest Greetings, I am Nguyen Thanh Nam, Lectuer - Hochiminh City I am pursuing a Doctoral Program in Business Administration, major in Financial Business at Bulacan State University-The Philippines I am doing my dissertation entitled “to innovate the private capital in order to create the harmoniously competitive environment for the HCM city commercial banks, Vietnam” l The study is to obtain a better understanding of the current status of Business-to-Business in the safe activities of the enterprises thus seeking for solutions for enhancing the management capacity for Vietnamese commercial bank May I request for your help in answering the attached questionnaire Rest assured that your identity and responses will be held in strict confidentiality and for research purposes only Page 163 Major in: Financial - Banking Management economy Candidate’s full name: Nguyen Thanh Nam Your kind attention to this request will be highly appreciated I would like to express my deepest gratitute and sincerest thanks for your help, time, patience and cooperation Thank you very much Yours Respectfully, Nguyen Thanh Nam Email: nam.nguyenthanh@hoasen.edu.vn; Cell phone: (84)-983388926 Page 164 Major in: Financial - Banking Management economy Candidate’s full name: Nguyen Thanh Nam B PROPOSED BIOGRAPHY Madura,(9th Edition), Financial Institutions and Markets Bank University, Bank financial management.Thong ke Bank University, Bank management.Thong ke Thomas G.Cumming, Christopher G.Worley,(9e), Organization Development & Change Frederic S.Mishkin,(fifth edition), Financial Markets Institutions Frederic S Mishkin, The Economics of Money, Banking & Financial Markets, ColumbiaUniversity White, Sondhi, Fried Wiley, 2nd ed, The Analysis and Use of Financial Statement Thomas G.Cumming, Christopher G.Worley,(9e), Organization Development & Change MBA Vipul Mittal, Asia Currency Union, first year, Global, IMT, Nagpur 10 Hisrich, Peters, Shepherd,(Seventh Edition) Entrepreneurship,McGraw.Hill 11 Paul Hersey, Ken Blanc Hard, (2004), Management of Organizational Behavior, Statistics 12 UNDP (2005), Human Development 2005, Oxford University Press 13 The Economic (2006 – 2007- 2008 – 2009) 14 The AsiaWeek (2006 – 2007 – 2008 - 2009) 15 UNDP (2006), Human Development 2006, Oxford University Press 16 World Bank (2007), World Development Report 2008, Oxford University Press 17 World Bank (2008), World Development Report 2009, Oxford University Press 18 Bank for International Settlements (2008), Annual Report 2008, Press & Library Services 19 Bank for International Settlements (2009), Annual Report 2009, Press & Library Services 20 World Bank (2008), World Development Report 2007, Oxford University Press 21 George H.Henpel and Donald G Simmonson (2008), “Bank financial management Strategics and techniques for a changing industry” 22 Bank University (2007), “Managerment and Business in Bank”, Thong Ke 23 Timothy W.Kock (2005), “Bank management”, NXB The Dryden Press, South Carolina University Page 165 Major in: Financial - Banking Management economy Candidate’s full name: Nguyen Thanh Nam 24 TP.HCM reserve bank “Annual Report from 2001 to– 6/2008” 25 Jenny Gordon and Bob Warrner (2007), “international integration in systems of banking”, Australia (CEG), international economic center 26 Le Van To (1999), Commercial Bank, Thong Ke, HCMC 27 Nguyen Quoc Viet (1997), “FED”, Education,HCMC WEB INDEX: http://www.ebook.com http://www.moet.com http://www.siteselection.com/features/2007/sep/malaysia/malaysia.htm http://www.khtp.com.my/article/default.asp?ArtID=15 Page 166 Major in: Financial - Banking Management economy [...]... solutions for subsequent years Next to, study innovate the private capital in order to create the harmoniously competitive environment for the HCM City Commercial Banks, Vietnam and control private capital of BIS… in the HCM City Commercial Banks 1.8 CONCEPTUAL FRAMEWORK It is important to place the conceptual framework of this current study in the context of Vietnam economy As the framework is the key factor... economy, the private capital is a foundation of legal business for the business, at the same time, it is also the important financial factor which ensure the debts for the customers In the currency business area, the private capital is a vital factor for the bank’s creation and long-term development To maintain the scale of private capital stably, ensure the strongly developing ability of private capital. .. order to help the HCM City Commercial Banks to modernize quickly, to be stable with the development of international standards about capital safety and the reality of Vietnam, whereby to improve the development, increase the profitable ability, establish the durably competitive position in the market step by step, the author have chosen topic: To innovate the private capital in order to create the harmoniously. .. harmoniously competitive environment for the HCM City Commercial Banks, Vietnam for own PhD thesis 1.7 SCOPE AND DELIMITATION OF THE STUDY The subject of study of the topic is to seek for the most realistic solutions, closely attached to the actual situation of Vietnam to bring the course of Vietnam banking system to success Therefore, the thesis will study scientific theorical points and analyze the reality... evaluation 6 The thesis has petitioned to The State of Vietnam, the State Bank of Vietnam, the People‘s Committee of HCM City some of support solutions in order to create the favorable conditions for implementing the innovation of manager in HCM City Joint – stock Commercial Banks to be successful early, such as: - To strengthen the Law system which is relative to implementing the International Capital. .. joint stock commercial banks in HCM city from 04 – 09 91 Figure (2.15): Financial capacity of the joint stock commercial banks at Ho Chi Minh City in 10/09 93 Figure (2.16): Change in financial capacity of the joint stock commercial banks in HCM City from 06-10 94 Figure (2.17): Analyzing the method of own fund determination so as to calculate the minimum safe rate following... stock capital in order to be stable with the innovation of the Law on Business, orient the developing model and determine the goal markets - To innovate comprehensively the regulations of risk management according to modern technology - To innovate the regulations of private capital management by technological solutions - To build the strategy of restructuralizing the own of stock capital durably; the. .. HCM City Joint – stock Commercial Banks, the thesis have put forward the innovative solutions of private capital according to International Capital Safety Standards (BIS’s standard system) which are stable with the real conditions of each bank, in order to create favorable conditions for safe, effective, firm, durable development, including: - To innovate the regulations of proprietary rights in stock... 3 In reference to the methods and reality have been analyzed, to spring from the requirements of developing economic, social and banking goals; based on the scientific foundations, the thesis have forecast the demands and drawn up the average growth processing of private capital; defined goals, principles and oriented the innovation of private capital for HCM City Joint – stock Commercial Banks 4 For. .. improvement, as the same time, has summed up some experiences from researching the private capital management of the banking activities in our country Based on surveying reality of private capital management at HCM City Joint – stock Commercial Banks, analyzing the achievements, the limit, the thesis has shown the reasons of the shortcomings which need to be solved Page 6 Major in: Financial - Banking Management