Thuyết trình môn ngân hàng thương mại credit risk management of comercial banks in vietnam

Commercial Bank Group Nguyen Linh Trang Dang Hai Linh Nguyen Hoang Hai Nguyen Xuan Minh Le Quynh Anh Credit risk management of comercial banks in Vietnam facts and issues Part I Theory of credit risk and credit risk management Entrepreneur Slides Credit risk management models Risk assessment criteria for credit list Some models Definition 4applied on the credit risk analysis The system BASEL II in credit risk management Credit risk management models Risk assessment criteria for credit list Some models Credit risk is the risk (potential) of loss that may occurred by borrower failure to Definition applied on the credit risk response their obligations under the terms and conditions of financing contracts The system BASEL in credit risk management analysis Credit risk management models Risk assessment criteria for credit list Some models applied on the credit risk analysis Definition Viet Nam Organizational risk management The system BASEL in credit risk management Risk measurement   Risk control Focus Dispersion credit risk credit risk management management a Focus credit risk management model Advantages Credit risk management Risk (+) Managing risks with a fully system banks and ensuring a longterm competitiveness (+) Establishing and maintaining a risk management environment in sync, matching with management processes Definition   (+) Developing risk management policies which was consist with the whole system Disadvantages assessment criteria for credit list (-) The construction and deployment of focus management model requires banks to spend more effort and time   Some models (-) Staffs have to have the necessary knowledges and know applied on the credit risk how to apply theories to practice analysis   (+) Suitable for large-scale banks The system BASEL in credit risk management b Dispersion credit risk management Credit risk management Risk This model does not have the separation between the functions of risk management, sales and operations Instead, the credit department performs fully three models functions and responses for all loan‘s preparations Definition assessment criteria for credit list Some models Disadvantages 4applied on the credit risk analysis Advantages (+) Simple1 organizational structure   (+) Suitable for small-scale banks (-) A lack of depth The system BASEL in credit risk management a   The ratio of bad debt on total loans = Risk Bad debt is the debt from Group to Group assessment criterias for credit list b.The ratio of provion on total loans = Credit risk management This ratio is higher, the credit risk of all major credit portfolio is bigger models Definition Some models analysis c The ratio of collateral on total loans This ratio is higher, the credit risk is lower d The ratio of risk debt on total loans The system BASEL in credit risk management Debt risks is from group to group This ratio is higher, the credit risk is bigger applied on the credit risk Risk assessment criterias for Z POINT MODEL 6C MODEL credit list Credit risk management models of commercial bank in Definition Some models Vietnam analysis ESTIMATED LOSS EXPECTED VALUE AT RISK MODEL MODEL applied on the credit risk The system BASEL in credit risk management INTERNAL CREDIT RATING MODEL 12 PART II Practicapil application Entrepreneur Slides SYSTEM CREDIT RISK MANAGEMENT OF TECHCOMBANK CREDIT RISK MANAGEMENT ON TECHCOMBANK System credit risk management of Techcombank a Structure diagram of Techcombank risk management: b Chart of risk management Build a system of internal credit ratings assigned by customer groups: residential, medium, large Management credit portfolio analysis and advice on the sector, comes built into the limit for each sector, construction of internal reports on credit portfolio management Develop tools, reporting monitoring and control of KRIs (the important risk indicators) Periodically inspect, check quality and credit system modifications Develop risk management model as the model for the LGH, EAD, Pricing c Provision of bad debts from 2014 to 2015 and the situation of Techcombank - Specific provision at 31/12 was determined by loans after deducting the value of collateral has been deducted allowance rate multiplied by classification group at 31/11 debt Specific provision - General allowance at 31/12 were up at 0.75% of total loans of the debts at Provision General Provision 30/11 except for deposits and loans to other credit institutions and liabilities are classified in heading irrecoverable debt   c Provision of bad debts from 2014 to 2015 and the situation of Techcombank As Circular 02/2013 / TT-NHNN , Techcombank divided into groups applied debt reserve ratio for each groups as follows: + Debt Eligible: 0% + Special Mention: 5% + Sub-standard: 20% + Doubtful: 50% + Debt Capital Loss: 100% Results in the management of bad debts through the bad debt ratio index Credit risk management on techcombank a Techcombank applies credit risk management model  Firstly, focus credit risk management model helps Techcombank maintain and implement credit policies which balance among targets  Secondly, Techcombank is the first bank organized credit risk management system which operated under international rules  Thirdly, Techcombank separates the functions of marketing, customer relationship, risk assessment independently with the credit provider decision, debt management, monitoring  Fourthly, Techcombank performs focus credit approval model and decentralizes credit approval with different levels  Finally, Techcombank holds the professional room with an independent credit monitoring function b Problems  Firstly, ensuring credit and service qualities, in credit provider activities: When network scale and business activities increased, the processing of credit provider terms usually wastes a lot of time => Affects the credit activities quality and competitiveness of Techcombank  Secondly, credit risk management report information systems: Banking technology system of Techcombank has yet to meet the requirements for risk management.   Thirdly, the management structure organization structure and the control of credit risk: regulation effectively  Finally, The debt handling: The work of handling overdue debts, bad debt is not good, the debt settlement process is until continue   The lack of staff to develop and perform procedures, 24 PART III Recommendations to improve credit risk management for the commercial banking system Entrepreneur Slides  Continuous improvement model of credit risk management consistent with the conditions of personnel, operational network and its infrastructure  Improving the information technology system to minimize the lack of information in the expansion and control of credit to the economy, thereby reducing the risk of rising bad loans for the banking system  Promoting collaboration between others commercial banks, enhancing the role of CIC in order to avoid cases of multiple bank lending rate a customer to exceed the maximum limit of the customer repayment  Monitoring and managing after the loan to be proactive to ensure that pay, find new business opportunities and expand business opportunities Thanks for watching !! .. .Credit risk management of comercial banks in Vietnam facts and issues Part I Theory of credit risk and credit risk management Entrepreneur Slides Credit risk management models Risk assessment... SYSTEM CREDIT RISK MANAGEMENT OF TECHCOMBANK CREDIT RISK MANAGEMENT ON TECHCOMBANK System credit risk management of Techcombank a Structure diagram of Techcombank risk management: b Chart of risk management. .. Credit risk management Risk (+) Managing risks with a fully system banks and ensuring a longterm competitiveness (+) Establishing and maintaining a risk management environment in sync, matching