Enhancing residential capital mobilization at joint stock commercial bank for investment and development of vietnam transaction office 1

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - ĐỖ NGỌC DŨNG ENHANCING RESIDENTIAL CAPITAL MOBILIZATION AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM - TRANSACTION OFFICE TĂNG CƯỜNG HUY ĐỘNG VỐN DÂN CƯ TẠI NGÂN HÀNG TMCP ĐẦU TƯ VÀ PHÁT TRIỂN VIỆT NAM - CHI NHÁNH SỞ GIAO DỊCH LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2018 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - ĐỖ NGỌC DŨNG ENHANCING RESIDENTIAL CAPITAL MOBILIZATION AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM - TRANSACTION OFFICE TĂNG CƯỜNG HUY ĐỘNG VỐN DÂN CƯ TẠI NGÂN HÀNG TMCP ĐẦU TƯ VÀ PHÁT TRIỂN VIỆT NAM - CHI NHÁNH SỞ GIAO DỊCH Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: TS PHẠM THỊ THANH HÒA Hà Nội - 2018 DECLARATION The author confirms that the research outcome in the thesis is the result of author’s independent work during study and research period and it is not yet published in other’s research and article The other’s research result and documentation (extraction, table, figure, formula,and other document) used in the thesis are cited properly and the permission (if required) is given The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business and Management, and the laws for above-mentioned declaration ACKNOWLEDGEMENT I would like to express my deep gratitude to the teachers of the Hanoi school of Business and Management, Vietnam National University, especially the teachers who imparted to me a lot of knowledge and helped me Carry out this essay I would like to express sincere gratitude to Dr Pham Thi Thanh Hoa has spent a lot of time, dedicated guidance, only told me during the course of the topic I sincerely thank family, friends and colleagues for encouraging and supporting me in the process of study and research TABLE OF CONTENTS TABLE OF CONTENTS i LIST OF TABLES iv INTRODUCTION 1 Rationale Research overview Research objectives 3.1 Overall objective 3.2 Specific objectives Research questions 5 Research object and research scope Research methods Organization of the thesis CHAPTER 1: THEORETICAL FaRAMEWORK ON ENHANCING RESIDENTIAL CAPITAL MOBILIZATION AT COMMERCIAL BANKS 1.1 Overview of residential capital mobilization activities of commercial banks 1.1.1 Basic concepts 1.1.2 Forms of mobilizing residential capital of commercial banks 1.1.3 Characteristics of residential capital 1.1.4 Role of residential capital 10 1.2 Enhancing residential capital mobilization at commercial banks 11 1.2.1 Concept 11 1.2.2 Contents of enhancing residential capital mobilization at commercial banks 11 1.2.3 Factors affecting residential capital mobilization at commercial banks 16 1.2.4 Criteria for assessing the effectiveness of residential capital mobilization at commercial banks 20 i 1.2.5 Experience in enhancing residential capital mobilization at commercial banks and lessons for BIDV – So GiaoSo Giao Dich Dich Branch 23 CHAPTER 2: REALITY OF ENHANCING RESIDENTIAL CAPITAL MOBILIZATION AT BIDV - SO GIAO DICH 26 2.1 Introduction of BIDV - So Giao Dich 26 2.1.1 History of foundation and development 26 2.1.2 Functions and tasks 28 2.1.3 Organizational structure 29 2.1.4 Business results 31 2.2 Reality of enhancing residential capital mobilization at BIDV - So Giao Dich 134 2.2.1 Establishing targets for residential capital mobilization 34 2.2.2 Building policies to enhance residential capital mobilization 35 2.2.3 Conducting activities to enhance residential capital mobilization 39 2.2.4 Evaluating the efficiency of residential capital mobilization activities 46 2.3 Evaluation of factors affecting residential capital mobilization at BIDV - So Giao Dich 50 2.3.1 Subjective factors 50 2.3.2 Objective factors 55 2.4 General evaluation 57 2.4.1 Achievements 57 2.4.2 Limitations and causes 58 CHAPTER 3: SOLUTIONS TO ENHANCE RESIDENTIAL CAPITAL MOBILIZATION AT BIDV - SO GIAO DICH 61 3.1 Development orientations and objectives of BIDV - So Giao Dich 61 3.1.1 General development orientations 61 3.1.2 Development orientation for enhancing residential capital mobilization 61 3.2 Solutions to enhance residential capital mobilization at BIDV - So Giao Dich 163 3.2.1 Continue to promote marketing and searching for customers 63 ii 3.2.2 Enhance training to improve the quality of the bank’s staff 64 3.2.3 Innovate and change banking technology 65 3.2.4 Increase propaganda to change people’s habit of keeping money at home 66 3.2.5 Expand the network of transaction offices 66 3.3 Recommendations 67 3.3.1 Recommendations to the State 67 3.3.2 Recommendations to the State Bank 68 3.3.3 Recommendations to BIDV 68 CONCLUSION 70 REFERENCES 71 iii LIST OF TABLES Table 2.1: Business results of BIDV - So Giao Dich 32 Table 2.2: Targets for residential capital mobilization of BIDV - So Giao Dich 34 Table 2.3: Individual customer policy of BIDV 35 Table 2.4: Diversification and innovation of residential capital mobilization products at BIDV – So Giao Dich 37 Table 2.5: Interest rates for capital mobilization of BIDV compared to other commercial banks in Hanoi on 31 December, 2016 39 Table 2.6: Expenses for the propaganda and promotion of residential capital mobilization products 41 Table 2.7: Promotion activities for residential customers using residential capital mobilization products 42 Table 2.8: Amounts of promotion gifts in the program "Golden Gift of October" at BIDV – So Giao Dich 44 Table 2.9: Contents of the training of residential capital mobilization staff 45 Table 2.10: Structure of residential capital mobilization at BIDV – So Giao Dich 46 Table 2.11: Structure of types of residential capital at BIDV – So Giao Dich 47 Table 2.12: Market share of residential capital mobilization of some commercial banks in Hanoi 48 Table 2.13: Expenses for residential capital mobilization at BIDV – So Giao Dich 50 Table 2.14: Marketing activities to enhance residential capital mobilization at BIDV – So Giao Dich 51 Table 2.15: Reality of human resources in capital mobilization at BIDV – So Giao Dich 53 iv INTRODUCTION Rationale The process of economic integration in the region and the world is taking place very excitingly When the TPP agreement comes into effect in 2018, Vietnam will have more opportunities to approach world markets and developed economies This also means that the competition will be fiercer in the whole economy At the same time, our country is in the period of dramatic economic changes - the period of accelerating industrialization and modernization of the country - helping the country through underdevelopment and improving the quality of life In order to successfully execute that strategy, the demand for capitals is very huge and urgent Therefore, current banks are constantly improving their service quality, expanding their operation network, and modernizing their systems in order to attract more capitals In which, the capital mobilized from residents is being paid special attention by commercial banks since the potential capital in the population is great but not yet exploited and people have not been aware of the profitability of deposits in banks, together with many other objective reasons As one of the largest commercial banks in Vietnam, Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) in general and So Giao Dich in particular are actively implementing many measures to mobilize the maximum capital from residents in order to finance the projects of socio-economic investment and development, serving effectively for the industrialization and modernization of the country Accordingly, the branch has carried out many advertising activities such as advertising on radio channels, social networks, hanging posters and banners, etc Some promotional programs deployed branches by the bank such as "Getting Gold with BIDV", "Double Lucks – Multiple Happiness", "Soon Deposit - Big Presents" have been enthusiastically supported by customers in the area However, due to the general difficulties of the economy and the fierce competition among banks in the area, the mobilization of capitals from residents has somehow grown but there has been no breakthrough in terms of size and capital quality In addition to the achievements, the capital mobilization activities of the branch also faced some difficulties such asthelow income level of people in the area, the little accumulation of money in the population, the fierce competition among other credit institutions in the area, leading to the low efficiency of the branch’s capital mobilization Based on the above reality, in order to help the Board of Directors of Vietnam Joint Stock Commercial Bank for Investment and Development clearly understand the successes as well as the shortcomings in the mobilization of residential capital at the branch in the past few years and have a basis for carrying out the residential capital mobilization, the author selected the topic "Enhancing residential capital mobilization at Joint Stock Commercial Bank for Investment and Development of Vietnam–So Giao dich Branch" as his thesis topic Research overview A bank is an organization that plays an important role in the economy Traditional banking services includelending, foreign exchange trading, trade financing, providing transaction accounts, and so on With the traditional model, offering loans is considered a highly profitable activity, so banks have proposed many solutions to mobilize the sources of loan capital In addition to the capital from foreign credit institutions, one of the important sources of capital is the capital mobilized from residents in domestic market However, how to mobilize residential capitals effectively is the question that banks need to consider so that they can find out solutions to expand and enhance the efficiency of residential capital mobilization Therefore, this topic has been concerned by many scholars and managers A scientific research was conducted by Dinh Thuy Kim Hoang (2011) entitled "Solutions to enhance mobilization of savings deposits at Eximbank - Dong Nai Branch" In the study, the author administered survey questionnaires to 100 customers in Dong Nai Province and then used SPSS software to process the data With a combination of many research methods including statistics, investigation, comparison, products were selected by commercial banks due to their diverse customer targets and large product demand In summary, economic integration and competition have created motivation to commercial banks in general and BIDV – So Giao Dich 1in particular inactivities of enhancing residential capital mobilization However, competition also reduced the market share of the branch and affected the deployment of deposit products Customers At present, the habit of customers at BIDV – So Giao Dich has gradually changed.Instead of only using traditional banking services, customers step by step had the demand for using modern banking products Customers at BIDV - So Giao Dich 1were mainly frequent customers in the area.The number of current customers was low and tended to decrease, affecting the capital mobilization activities of the branch Besides, there were many investment channels such as gold, securities, etc in short terms with higher profitability, making the activities of enhancingresidential capital mobilization of the branch ineffective and the branch did not achieve expected results That the State Bank regulated the interest rate ofUSD in all terms since2016 made people withdraw deposits in USD to switch to other investment channels for better profitability Thisled to a significant decrease inthe amount mobilized capital in foreign currency of the branch and affected the loans in foreign currency for export of BIDV 2.4 General evaluation 2.4.1 Achievements When implementing activities to increase the residential capital mobilization, BIDV – So Giao Dich 1achieved the following results: - The growth of residential capital was enhanced, which helped BIDV – So Giao Dich 1maintain a stable source of capital mobilization and support the branch in balancing the mobilization of capital 57 - The branch’s market share of residential capital mobilization was at a high level, showing its strong competitiveness in the market - After 25 years of establishment, BIDV – So Giao Dich 1had confirmed its reputation in the market and created credibility to customers This created a longterm, beneficial relationship for both customers and the branch in the mobilization of residential capital as well as in other activities of the branch The network of transaction points wasworking effectively and attracting more and more customers, contributing to expanding the size residential capital - BIDV – So Giao Dich 1diversified its forms of mobilization including savings deposits, issuing promissory notes, bonds, issuing ATM cards, offeringforms of award-winningsavings deposits with various terms, etc Thus, the branch had been successful in creating abundant sources of residential deposits in terms of both quantity and quality - The level of staff was constantly improving The procedures and serving attitude were improved significantly, which saved time and money for customers and created a comfortable feeling for customers when they came to the bank Moreover, in recent years, BIDV – So Giao Dich 1had made great efforts in promoting its image to the public in various forms, contributing significantly to the success of the capital mobilization in general and residential capital mobilization in particular 2.4.2 Limitations and causes Limitations - The structure of residential capital was not reasonable The proportion of payment deposits in the total mobilized capital was low andwas not in line with the policy of increasing service income and developing non-cash payment - The capital mobilized from time deposits accounted for a high proportion The issuance of valuable papers had not exploited the idle capital in the population - The expenses for mobilizing residential capital at the branch were high and continuously increased over the years In order to mobilize an amount of residential 58 capital, BIDV – So Giao Dich 1had to spend much money on finance and human resources - The market share of residential capital mobilization of BIDV - So Giao Dich tended to be decrease compared to that of its direct competitors such as Vietcombank and Vietinbank - Although BIDV – So Giao Dich 1deployed many technological savings products such as flexible principal withdrawal savings, online savings, ladder term savings, retirement savings, etc., these products had notbeen widely introduced and promoted to the people - The price of residential capital mobilization of BIDV – So Giao Dich was lower than the general level and was not as competitive as other banks in the area - Currently, BIDV – So Giao Dich 1had implemented many advertising and marketing programs to mobilize savings deposits, but the advertising contents were not detailed, and outstanding As a result, the products of deposits at the branch were not known by many customers and they mainly used the traditional forms of deposits Causes + Subjective causes BIDV – So Giao Dich had not had an automatic identitysystem of VIP customers The branch had no reception areas for VIP customers, no e-banking experience areas like some other commercial banks in the area Although the quantity, level and quality of human resources responsible for residential capital mobilization at BIDV – So Giao Dich 1increased over the years, but most of theemployees were young and lackedworking experience Their soft skills and consulting skills were poor.Some employees were not familiar with the residential capital mobilization products of BIDV Although the system of transaction points was expanded, there were still many shortcomings.For example, the ability of brand identify was not good Transaction tables and counters were not designed properly.Some transaction 59 offices did not have generators, which led to interruption in the provision ofresidential capital mobilization products at the branch The marketing activities were been improved in recent time, but there were still many limitations that need to be overcome The research of market, customer demand, and competitors had not been conducted regularly and systematically + Objective causes The economy in our country in general and in Hanoi in particular had many changes.The inflation rate was still high.Other forms of investment such as gold, foreign currency, securities, etc hadhigher profits than the form of bank savings In the period of 2014 - 2016, the cash flow invested in real estate tended to increase, leading to the decrease inresidential capital In the intense and unhealthy competition among commercial banks in terms of interest rates, taking advantage of interest rates is a way to attract depositors and makethe cash flow transfer among banks, which reduced the scale of capital mobilization ofcommercial banks The ability of brand identity of BIDV was still limited compared to other commercial banks.The brand of BIDV was still mistakenfor that of other commercial banks 60 CHAPTER 3: SOLUTIONS TO ENHANCE RESIDENTIAL CAPITAL MOBILIZATION AT BIDV - SO GIAO DICH 3.1 Development orientations and objectives of BIDV - So Giao Dich 3.1.1 General development orientations In the report of 2016, the Board of Directors of BIDV – So Giao Dich 1put forward the strategies and orientationsuntil 2020 with the following tasks: First, complete the professional and effective organization, business procedures, executive management regulations, decentralization of authority and coordination among transaction offices, aiming at providing the most suitable products to with all kinds of customers; Second, rapidly develop high quality human resources based on the use and development of national and international experts as the core force for stable and sustainable development; Third, raise the capacity to exploit and apply technology in banking activities; Fourth, focus on comprehensive restructuring of business activities to improve efficiency and maintain quality; proactively control risks and sustainable growth; Fifth, developretail banking activities; hold a large share of outstanding loans, capital mobilization and retail services; Sixth, strive to become the branch with best credibilityin the area rated by the credit rating agencies in the country; Thus, the development orientations of BIDV - So Giao Dich 1until 2020 included the main contentssuch as credit, capital mobilization, investment, capital trading, development ofretail banking activities, income-efficiency, human resources and technology 3.1.2 Development orientation forenhancing residential capital mobilization Our economy is developing.This is reflected in the increasing living standards of people, especially people in Hanoi.People’s income and accumulation 61 are increasing; however,sincethe income and accumulation of different people are different, people choose various ways of savings such as bank savings, gold investment and securities Based on this practice, commercial banks should continue to diversify their mobilization forms to meet the needs of all individuals in the society Recognizing this problem, BIDV – So Giao Dich 1has soon set up plans and strategies to complete the tasksassigned by BIDV and actively participated in the process of economic development and integration of the country In the work of residential capital mobilization, the management of the branch attaches great importance to mobilizing medium and long-term capital sources in order to stabilize the capital sources for other business activities Entrusted funds are also expected to be extended As a large commercial bank in Hanoi with many advantages in capital mobilization, BIDV - So Giao Dich has orientated to enhance residential capital mobilization in the coming time to serve business activities, contribute capital to other branches in the system and successfully implement the plan of capital resources of BIDV However, the exploitationof residential capital at the branch was difficult and limited due to the influence of subjective andobjective factors In order to enhance residential capital mobilization, it is necessary for the branch to find solutions to overcome difficulties and obstacles and create a suitable capital mobilization strategy The enhancement of residential capital mobilization at BIDV – So Giao Dich 1in the next phase includes: - Create initiative for the branch in adjusting the volume and structure of capital to actively invest in loans and loan recovery At the same time, develop cooperative relationships with other branches in the same system as well as other banks’ branches in the areawith the principle of healthy competition, cooperation for the benefit of the whole system and learning experience from cooperatingparties - Develop the mobilized capital,especially residential capital, andreduce costs - Promote the capacity and effectiveness of mobilized capital sources for the business activities of the branch 62 3.2 Solutions to enhance residential capital mobilization at BIDV - So Giao Dich 3.2.1Continue to promote marketing and searching for customers Marketing is one of the most important tasks of any bank Whether customers know about a bank depends on the bank's communication to the public Currently, the marketing activities of BIDV – So Giao Dich 1were still limited, which madethe ineffectiveness of residential capital mobilization Therefore, in the coming time, BIDV – So Giao Dich 1should promote its marketing activities, namely: Strengthen the marketing and promotion to make BIDV’s brandbecome the best retail bank in Vietnam for consecutive years of 2015 and 2016;actively propagate and expand new utilities, products and services through social networking channels, prestigious electronic newspapers such as tintucvietnam, vietnamnet, and so on Finance some charitable activities such as "Bringing messages to the hospital", giving winter supplies to pupils in Yen Bai Province, etc tostrengthen the image and brand of BIDV This way the branch will have the opportunity to appear on the mass media at the lowest cost Well perform the annual survey withVIP customers’ evaluation on BIDV's policies such as geographical location, staff attitude, transaction space, etc and survey on customers’ recommendations and requirements onthe policy of interest rates of deposits, loans, demand for specific products, and so on Based on customers’ feedback, BIDV – So Giao Dich 1will draw experience and to serve customers better and build its corporate culture Boost the communication and propaganda to create a positive image of BIDV – So Giao Dich To provide customers with a more specific look at the branch and the mobilization products and services of the branch, advertising and promotion policies should be paid attention Marketing activities must create outstanding features of BIDV's capital mobilization products to clearly distinguish them from those of other banks In the short term, the branch should improve the service registration forms (currently there were many black and white forms without 63 colors) Diversifyleaflets, brochures about residential capital mobilization productsat the branch and place them in front of the transaction counter so that customers can read when they come for transactions or deliver to residents’ houses to enhance the interest of customers in the bank At the same time, increase advertising on the mass media through images, articles, reports or sponsorship for TV shows which are of great interest, etc 3.2.2Enhance training to improve the quality of the bank’s staff Employees have a great influence on the operations of commercial banks The training and retraining of professional knowledge and professional ethics should be frequently paid attention The assignment of work must be reasonable, fair and suitable for each professional division The recruitment of new staff must be conducted publicly, transparently in accordance with guidelines of the superiors and the actual needs The emulation and reward should be conducted regularly andshould be considered as an important factor to achieve the proposedtargets In order to improve the quality of the bank’s staff in general and employees responsible for residential capital mobilization in particular, BIDV – So Giao Dich should take the following measures: Periodically, the branch should organize training courses on capital management and deposit mobilization The branch should raise the awareness, capacity, and professional ethics of the employees; Strengthen the inspection and control to detect violations and take timely corrective measures;Comply with the Law on Complaints and Denunciations; Well perform the reception work and promptly deal with letters Besides, the staff responsible for residential capital mobilization must constantly study and improve their professional skills to have better working style Always listen to customers when they present their ideas;avoid showing angerand despising customers Focus on intensive training of traditional expertise and update new knowledge, new products and modern banking technology The training strategy must specify the training objects, training contents and training time The training 64 should focus on products that are deployed at the branch Besides, the training should beconducted comprehensively; avoid widespread and unpredictable training, which causesa waste of time, human resources and money Set up business plans based on KPIs; deliver profit targets to each manager of customers;assign the management of customers to each staff to connect customers and the bank staff, and thereby increase the level of customer satisfaction towards BIDV Branch – So Giao Dich Set up suitable rewarding policies;apply the encouragement policies both in terms of materials and spirit; launch the emulation movement in order to stimulate active activities in capital mobilization In addition, there must be adequate punishment and criticism for those who fail to comply with the bank's principles, corrupt employees who cause losses to the bank Moreover, there should be discussions between managers and professional staff so that they can learn from each other and share their working experience This will create a healthy working environment and healthy competition among the staff 3.2.3Innovate and change banking technology The development of modern banking technology and technical infrastructure (equipment, network, etc.) and the application of modern business technology are decisive processes for the development of banking services It is a condition to provide products and services to customers, including the mobilization of residential capital In order to implement this solution, BIDV – So Giao Dich 1should takethe following measures: Expand the payment network through channels of transaction and payment that the bank has deployed such as ATMs, Home Banking, BIDV Smartbanking, BUNO, BIDV Online, mobile payment services, etc to enable customers to register for new services and conduct personal information search to check account balance easily This transaction system must be built on the basis of confidentiality and security Speed up the modernization of the bank according to Basel standards; upgrade the Core Banking system and integrate data mining programs such as MIS, 65 MPA, customer information enriching system to increase residential capital mobilization based on interests, habits, popular locations, etc Develop e-banking applications such as BIDV Smartbanking, BUNO and MOMO e-walletso that customers can experience the bank's features including Money transfer, savings deposit, card payment, etc without having to go to the bank From can experience the features of banks such as: Money transfer, savings, card payment without having to go to the bank These applications will help enhance the sources of idle capital from residents and increase the efficiency of capital mobilization 3.2.4Increase propaganda to change people’s habit of keeping money at home Currently, some people still have the habit of storing money at home because they not understand the convenience and profitability of depositing money at the bank To change this habit, BIDV – So Giao Dich 1should organize propaganda on the policy of savings deposit mobilization so that people can understand that the purpose of deposits mobilization is to help people gradually build up their family's capital through savings 3.2.5 Expand the network of transaction offices The banking network is a very important factor for banking operations This is an advantage that banks are exploiting thoroughly in the process of competition The wider the banking system is, the greater the market share of the bank is.Thanks to the wide network, banks can support each other quickly and in time if there is a shortage of liquidity or other fluctuations BIDV – So Giao Dich 1should upgrade and expand its network of transaction offices as follows: - Upgrade Hoa Binh Transaction Office, Ton Duc Thang Transaction Office so that they become Standard Transaction Offices of BIDV; step by step upgrade other transaction offices; focus on looking for new and larger transaction points to build BIDV's e-banking experiencing area - Regularly check andchange the locations of ineffective transaction offices Besides, analyze and find out the causes to proposed timely remedial measures to ensure the smooth operation of the whole bank 66 - Renovate working facilities and improve mobilization procedures to increase the quality and serve customers better - Transaction network and transaction pointsare important factors determining the results of many activities, not only residential capital mobilization activities Therefore, expanding the network of transaction points is a long-term strategy of BIDV – So Giao Dich 3.3 Recommendations 3.3.1 Recommendations to the State Owing to the rapid development of socio-economic situation,many new arising social relationships in the market economy need to be adjusted by law to create a stable legal environment for the development of the economy However, due to many objective and subjective reasons, the legal system of the State Bank was not synchronous and was not a legal basis for businessmen Therefore, it is recommended that the Government should take necessary measures to ensure the consistent and thorough implementation of the law Particularly for the banking sector, it is necessary to strengthen legislation on banking activities to meet the new demands of economic development in the period of national industrialization and modernization and integration into the world economy The Government should promptly issue legal documents regulating and guiding the implementation of new laws in line with the domestic and international socio-economic situation The Government should take synchronous measures to stabilize the monetary policy, control inflation and stabilize the domestic and foreign value of currency The stability of currency has a great impact on the capital mobilization activities as well as the operations of the bankbecause people will be confident to deposit money into the bank, which helps increase and make the capital mobilization of the bankmore stable Stabilizing monetary policy makes the economy stable and reduces risks in banking activities, especially credit risks As a result, the bank shoulddeveloplending, especially medium and long-term loans 67 3.3.2 Recommendations to the State Bank The State Bank needs to develop and complete the monetary policy; use the tools of monetary policy in a flexible way in order to properly regulate the amount of money circulated in the economy; implement the policy of free interest rates by market; and create favorable conditions for commercial banks to improve the efficiency of capital mobilization Particularly, the State Bank should complete the system of normative documents related to the field of capital mobilization The documents should be open, flexible and consistent with reality and should be applied consistently at banks - At present, the fluctuation of exchange rates has caused difficulties for business activities of enterprises and banks Therefore, the State Bank should closely monitor market signals to propose and implement cautious and flexible monetary policies to stabilize the macro economy and stimulate the economy - The State Bank should create favorableconditions for commercial banks to cooperate and compete in a healthy and equal manner, especially between stateowned commercial banks and jointstock commercial banks 3.3.3 Recommendations to BIDV In order to maintain its current market share and continue to develop, BIDV needs to make appropriate adjustments in current market conditions so as to expand its international relations with other countries in the region and in the world; continue to receive external savings, especially long-term capital - Implement in time and provide specific guidance on the implementation of documents, regulations, decisions and directives of the State Bank on the banking operations in general and activities of mobilizing residential capital in particular; create favorable conditions for the branch to operate in the framework of law and ensure high quality - Strengthen the role of internal auditing and control at branches as well as at the bank’s Head Office This activity must be conducted regularly, comprehensively and accurately to detect and handle the risks in time 68 - Closely follow the orientations and objectives of socio-economic development of the Party and the State to have specific plans and development strategies in line with BIDV - Carry out the modernization of information technology system of the whole system; carry out information management in a synchronous direction At the same time, quickly bring in new technologies and equipment to develop diversified types of banking services to increase the business efficiency and competitiveness of the bank - Expand the bank's advertising and promotion activities through sponsorship of socio-cultural programs, sports programs charity programs, etc., so that the brand and products of the bank are widely advertised in the country and abroad - Actively diversify forms of capital mobilization; attach importance to the mobilization of residential capital.The amount of residential capital must account for at least 50% of the total capital - Step up electronic payment and payment network to attract capital from economic units, financial organizations, and so on - Send young and talented employees to study abroad, especially in countries with advanced banking technology such as Japan, the USA, Switzerland, etc., in order to improve their managerial and professional skills; draw the experience and apply in the practice of our country 69 CONCLUSION Along with the country's development, the banking system of our country is developing and confirming its important role in the economy Theeffective mobilization of idle funds ofVietnamese commercial bank systemhas changed the economyof the country By studying this topic, the author had a deeper access to the capital mobilization activities of the BIDV – So Giao Dich Through the theory and practice, the author had a betteroverview of the economic picture of Vietnam, especially in the system of commercial banks in Vietnam The research has accomplished three tasks: First, synthesizing and systematizing basic theories on enhancing residential capital mobilization of commercial banks, focusing mainly on the contents and factors affecting this activity Second, analyzing and evaluating the reality ofresidential capital mobilization at BIDV,summarizing the limitations and causes of limitations in the mobilization of residential capital at the branch Third,proposing solutions and recommendations to enhance the mobilization of residential capital at BIDV – So Giao Dich Although the author had triedhard to complete the thesis, due to the limited research scope as well as the limited knowledge, the author’s evaluations weresometimes subjective The author hopes to receive comments of teachers, friends and colleagues to better complete the thesis 70 REFERENCES Dinh Thuy Kim Hoang (2011),Solutions to enhance the mobilization of savings deposits at Eximbank - Dong NaiBranch, Mater Thesis, Banking Academy Nguyen Ngoc Phuong (2008), Some solutions to enhance residential capital mobilization at Vietcombank - Ba Dinh branch, Master Thesis, Thuongmai University Nguyen Hoa Nhan (2013), Extending residential capital mobilization at BIDV -Nam Hanoi branch, Master Thesis, Da Nang University Omankhalen (2015), The Role of Banks in Capital Formation and Economic Growth: The Case of Nigeria, Economy Transdisciplinarity Cognition Vol 15, Issue 1/2012 Chris Humephery Rumenda, Joash Simiyu Wakoli and Winnie Wanjiru Nyantika (2012), Factors influencing savings mobilization by commercial banks: A case study of commercial banks in Nakuru, International Review of Business Research Papers.Vol No Pp 356-367 Law on Credit Institutions(2010) Nguyen Van Tan (2016), Residential mobilization at BIDV - Ha Thanh branch, Master Thesis, National University Che Thi Thanh Nguyet (2012), Solutions to improve capital mobilization efficiency of BIDV - Bac Ha Hanoi Branch, Master Thesis, Banking Academy BIDV – So Giao Dich 1, Annual report for the stage of 2014-2016 BIDV – So Giao Dich 1, Report on retail banking activities inthe stage of 2014-2016 Training materials for mobilization operation at BIDV Documents and directives for the operation at BIDV system and So Giao Dich 71 ... Characteristics of residential capital 1. 1.4 Role of residential capital 10 1. 2 Enhancing residential capital mobilization at commercial banks 11 1. 2 .1 Concept 11 1. 2.2... 1. 1 Overview of residential capital mobilization activities of commercial banks 1. 1 .1 Basic concepts 1. 1.2 Forms of mobilizing residential capital of commercial banks 1. 1.3... 1. 2.2 Contents of enhancing residential capital mobilization at commercial banks 11 1. 2.3 Factors affecting residential capital mobilization at commercial banks 16 1. 2.4 Criteria for assessing