Internship report (1)

Internship Report Banking Academy BANKING ACADEMY OF VIETNAM FACULTY OF FOREIGN LANGUAGES -***** - INTERNSHIP REPORT Title: Expanding lending activities for Small and Medium enterprises at VPBank Kim Lien branch Student’s name : Nguyen Khanh Huyen Class : K18ATCA Student’s ID : 18A7510069 Supervisor : Mrs Dinh Thi Bac Binh Hanoi, May 2019   Internship Report Banking Academy DEDICATION I hereby declare that this report is made by my efforts and enthusiasm The data and results stated in the thematic topic are honestly derived from the internship unit Hanoi, April 24th 2019 Huyen   Internship Report Banking Academy ACKNOWLEDGEMENTS To complete this report, I sincerely thank all lecturers in the Faculty of language at Banking Academy of Vietnam, who have dedicated their knowledge to me for years of study Especially, I owe a great deal of gratitude for Mrs Dinh Thi Bac Binh, for all her advice as well as the experience for me Without her enthusiasm, I was not able to submit this internship report on time Then, I would like to thank the Board of Directors of Vietnam Prosperity Joint Stock Commercial Bank - Kim Lien branch for accepting and allowing me to practice at the Bank At the same time, I would also send my endless gratefulness to all the staffs working at Kim Lien branch for supporting me in terms of data so that the report can be done with the most accurate numbers Last but not least, I can not but mention to my parents and friends during the time studying at Banking Academy Their motivation makes me try hard every day I am so grateful for their appearances in my life   Internship Report Banking Academy EXECUTIVE SUMMARY My internship program lasted two months at Vietnam Prosperity Joint Stock Commercial Bank - Kim Lien branch, located at No.61, Xa Dan Street, Phuong Lien Ward, Dong Da District, Hanoi After working here, I have studied and researched about the operations of the branch and paid special attention to the development of SME lending activities in order to supplement the capital for the sector With the purpose stated above, in this internship report, I chose the research topic: "Expanding lending activities for small and medium enterprises at VPBank Kim Lien branch" With this topic, I will clarify the basic issues of SMEs, the status of SMEs’ lending activities at the branch of the Bank, and thereby propose solutions and recommendations to develop SME lending activities at VPBank Kim Lien branch in Hanoi The article is structured into chapters, as follows: Chapter 1: Introduction of Vietnam Prosperity Joint-Stock Commercial Bank (VPBank) Chapter 2: Internship Activities at VPBank Kim Lien Branch Chapter 3: Recommendations to expand lending to small and medium enterprises at VPBank Bank, Kim Lien branch and conclusion   Internship Report Banking Academy LIST OF ABBREVIATIONS VPBank Vietnam Prosperity Joint-Stock Commercial Bank Sacombank Saigon Thuong Tin Commercial Joint Stock Bank ACB Asia Commercial Joint Stock Bank (ACB) VIB Vietnam International Commercial Joint Stock Bank SMEs Small and Medium Enterprises LIST OF TABLES Table Page Table 1: Number of SME customers at VPBank Kim Lien branch in the period of 2016 – 2018   Table 2: Accounting balance sheet of VPBank Kim Lien branch Table 3: Training Timetable Table 4: Overdue debt situation of VPBank Kim Lien branch Internship Report Banking Academy TABLE OF CONTENTS DEDICATION ACKNOWLEDGEMENTS EXECUTIVE SUMMARY LIST OF ABBREVIATIONS LIST OF TABLES TABLE OF CONTENTS CHAPTER 1: INTRODUCTION OF VIETNAM PROSPERITY JOINTSTOCK COMMERCIAL BANK (VPBANK) 1.1 Overview of VPBank 1.1.1 General Information 1.1.2 Brief History 1.1.3 Product Lines 1.1.4 Competitors 1.2 Organizational Structure CHAPTER 2: INTERNSHIP ACTIVITIES 14 2.1 A brief introduction of the department 14 2.2 Business Volume 16 2.3 Detailed discription of Intership activities 17 2.4 Critical Analysis 23 2.4.1 Strength 23 2.4.2 Weakness 25 2.4.3 Opportunities 26 CHAPTER 3: RECOMMENDATIONS 28 3.1 Diversify lending activities for SMEs 28 3.2 Develop flexible interest rate mechanism for SMEs to attract customers 28 3.3 Develop a marketing strategy with the goal of attracting SME 29 3.4 Enhance consultancy activities for SMEs 29 3.5 Strengthen staff work 29 CHAPTER 4: CONCLUSION 30 REFERENCES 31   Internship Report Banking Academy CHAPTER 1: INTRODUCTION OF VIETNAM PROSPERITY JOINTSTOCK COMMERCIAL BANK (VPBANK) 1.1 Overview of VPBank 1.1.1 General Information - Full name: Vietnam Prosperity Joint-Stock Commercial Bank - Shorten name: VPBank - Head office: No.89 Lang Ha, Lang Ha Ward, Dong Da District, Hanoi - Phone number: +84 (0243) 9288869 - Website : https://www.vpbank.com.vn/ - Email : chamsockhachhang@vpbank.com.vn - Number of employees: 15.500 - Logo : 1.1.2 Brief History Vietnam Prosperity Joint Stock Commercial Bank was established on August 12, 1993 under the name of Vietnam Joint Stock Commercial Bank for Private Enterprises After nearly 25 years of operation, VPBank has developed its network to 219 transaction points with a staff of nearly 24,000 employees By the end of 2017, VPBank's charter capital has increased to VND 15,706 billion VPBank is gradually asserting a dynamic bank’s reputation with stable and responsible financial capacity to the community In 2017, VPBank closed its 5-year journey (2012-2017) with great achievements in scale and profitability, makingVPBank one of the leading commercial joint stock banks in Vietnam Especially, 2017 is a historic milestone of the bank when nearly 1.5 billion shares were officially listed on HOSE, attracting great attention of domestic and   Internship Report Banking Academy international investors During the process of formation and development, VPBank always paid attention to expanding scale and strengthening activities in big cities Innovation and creation are drastically implemented in a series of key activities, such as building business models, risk management, centralized customer service management and credit approval, investment in technology through the development of online and mobile applications and so on Entering the next 5-year journey, 2018-2022, VPBank will continue to maintain its current growth momentum and find new growth motives, based on innovation and ceaseless creation along with the foundation bright success achieved 1.1.3 Product Lines The main business lines of VPBank include: - Monetary intermediary activities - Operation of insurance agents and brokers - Financial services not classified (except insurance and social insurance) 1.1.4 Competitors + Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) + Asia Commercial Joint Stock Bank (ACB) + Vietnam International Commercial Joint Stock Bank (VIB) Currently the development of banking system is extremely strong So the competition’s level among banks has also become more intense The three banks mentioned above are considered formidable rivals with VPBank today   Internship Report Banking Academy Institutional Customer 1.2 Organizational Structure SME Customer Executive Board Large Business Customers and Investments Debt Asset Management Committee Finacial Market Deputy General Director of Business Credit Council Operational Risk Management Committee Human Resources Committee Individual Customer Center of Financial Institutions and Banking Transactions Small Trader Credit Risk Management Committee General Meeting of Shareholders Credit Committee and Debt Discovery Administrative Council Strategic Center and Project Management Banking Service and Digital Technology General Director VPDirect Control Board Communication and Marketing Operation Internal Audit Block Finanace Risk Management Office of the Board Office of General Director Human Resources Deputy General Director of Support Business Analysis Information Technology (IT) VPBank AMC VPBank FC Credit (Source: VPBank’s annual report in 2018)   Legislation and Compliance Control Internship Report Banking Academy   The Vietnam Prosperity Joint Stock Commercial Bank (“VPBank”) defines the functions and responsibilities of each department in the bank as follows:    Retail Banking The Retail Banking Division focuses on the growth of credit cards, in terms of both cards issued and card spending Besides targeting affluent and middle-class customers, VPBank has established credit cards for low-income customers, especially workers with the desire to give every customer the opportunity to experience simple and convenient payments with a lot of incentives Household Banking (CommCredit) By the end of 2017, the Household Banking Division (Commcredit group) owned 236 transaction points in 51 provinces and cities The Household Banking Division will develop business operation by launching a variety of financial services products such as loans and investment to insurance products SME Banking 2017 was a vibrant and dynamic year for VPBank in the segment of SME strategy In the SME segment, with two digitalization roadmaps, the primary goal is to bring more customer experience and tight the intimate relationship between existing banks and VPBank In parallel, VPbank has streamlined and automated credit processes to reduce credit processing time and manual operations Commercial Banking The Commercial Banking Division concentrates on approaching and acquiring prospective enterprise customers who provide products and services with a powerful production mechanism and healthy financial indicators The Commercial Banking Division also exploits the strong point of trade finance which targets import and export enterprises with high creditworthiness and large distribution   Internship Report Banking Academy million corresponded to a growth rate of 13.18%, the assets and capital of banks increased relatively This proved that the business situation of the bank was very good and thrives However, in 2018 compared to 2017, the bank's assets and capital sources also increased compared to the previous year, increasing VND 212,496 million, but the corresponding growth rate decreased slightly to 11.84% Perhaps because of changes from BREXIT or FED's decision to raise interest rates, the domestic and international economies were affected 2.3 Detailed discription of Intership activities Training Time Table Time Tasks 29/02-10/03 Outline the internship, get to know the background theory of Centre Branch of VPBank 13/03-20/03 Learn about the SMEs Banking Department and general information of the corporate lending process/ loan managing process 21/03-28/03 Learn about the loan products 29/03-12/04 Practice making and examining lending documents 13/04-25/04 Summarize and analyze gathered information for the internship report 26/04-20/05 Accomplish the internship report and ask for certification of internship Thanks to the introduction of the Banking Academy, as well as the help of the Faculty of Foreign Languages, I had the opportunity to practice at Kim Lien branch bank from Febuary 29 to April 25 29/03 – 10/03: During this time, I learned a lot of new things from the Small and Medium Business Department Mr Duy introduced me to the whole section and brief information related to it The staff there welcomed me very enthusiastically and warmly After that, we exchanged and discussed my internship plan Mr Duy   17 Internship Report Banking Academy commented on my sketch for this internship and offered solutions to improve it He also talked about things I would have to prepare for the next time 13/03 – 20/03: On this week, I took time to learn about my department and information about small and medium business loans and the process to make a loan It can be said that the lending model is no different from the personal lending model, however, customers will definitely come from small and medium enterprises, that is accompanied a higher demand for employees My documents were mostly provided by Mr Duy and he gave me some small topics to study at home Actually, that helped me a lot during the internship at VPBank Kim Lien branch 21/03 – 28/03: From March 21 to March 28, I learned thoroughly about VPBank's SME lending products It is extremely diverse with many products suitable for many types of businesses, simple conditions and the same process As I have mentioned above, this is the process of SME lending based on my own understanding of it This part played an essential role in my internship, as they were the guideline for me to carry out my tasks i) Proposing credit line Customer relation staffs take initiative to gather information and profiles directly from the clients as well as other sources for further use From there, based on the result of the appraisal, credit risk assessment, grade and credit rate, the staff will make a report according to form 1.1 iii) Documentation and adjustment After creating the Operation Notice, the Loan Management Department will check it’s completeness and validity in accordance with current regulations Based on information received, the Debt Management Department inputs data of credit line and classifies clients into technology system, ensuring that the information entered into the system matches the approved credit content iv) Checking and reviewing credit line  For the cases of periodical, the evaluation reports will be made according to form 1.2   18 Internship Report  Banking Academy The sequence of steps for checking, identifying and re-approving credit line shall be the same as for the first time v) Adjustment  The Customer Relation Department is responsible for regularly updating client activity to make timely adjustment to the event, especially in the case of unforeseen risks The steps for adjustment shall be the same as for the first time vi) Assessing and approving credit  The Customer Relation Department is responsible for receiving requests from clients except for the case that the client has already had the credit line Upon receiving the request, customer relation staffs shall base on the current credit regulation to consider at least the following content: o The completeness and validity of the profile o Collected information and documents directly from the client and other sources o Updates on major changes of client compared to the time of approving credit line o Information related to specific credit needs, which are currently mentioned for: business plan, project, sources of debt repayment, ability to fulfill commitments, etc o The suitability of credit requirements for credit policies, credit line, and approved conditions (if any) vii) Approving credit  This process related to coordination of different departments from the central to the branch for example: The Board of Director, Director of the Customer Relation Department, Risk Management Department, Director of the branch, etc Based on the collected information, they will discuss whether this case is worthy or not and the case also need to have the approval of all related department to be valid vii) Signing credit contract, mortgage contract and other related  Based on the approved credit contents, the Customer Relation Department shall select the appropriate contract form or coordinate with consultancy unit (if the client agreed) to draft It is also responsible for ensuring that the information on the contract complies with the information of approved credit Moreover, the signatures   19 Internship Report Banking Academy on the contract must be the lawful representatives of the clients according to the provision of the law as well as the representatives of VPBank signed on types of contracts in accordance with delegated authority  In case the client disagrees with the loan conditions approved by competent authority, staffs must report back to the head of the Customer Relation Department In case of necessity to modify the contents and conditions, the department shall make an appraisal and proposal on credit adjustment according to form 1.6 then submit it to competent authority viii) Data input and documentation  The Debt Management Department is in charge of checking the completeness and validity of the Operation Notice and the files asking for credit sent from the Customer Relation Department, ensuring that they have all signatures of all related departments according to the regulations If the files are valid, staff opens a credit contract on the system then reports and sends all files to the head of the Debt Management Department for supervising, ensuring that all information matches the approved credit information  The Debt Management Department also has to send to the accounting department original copy of the credit contract as well as copy of pledge or mortgage contract, proof of ownership of customers for financial acts ix) Disbursement  The capital withdrawal dossier comprises: o 03 original debt certificate with valid signatures of the customer o Papers evidencing the purpose of using loan related to disbursement such as economic contracts, invoices, etc o Payment authorization  The contents of the examination of the file for loan withdrawal shall include: o The completeness and validity of the application file for withdrawal o The conformity of contents of the capital withdrawal dossiers with approved credit conditions and/or signed credit contract o   Credit limit remaining 20 Internship Report  Banking Academy After making sure everything is valid, the loan management staff opens the loan account, fills in the loan account number and signs the debit note then submit to the head of the department for approval x) Supervising, Monitoring and Handling possible risks  At least every months, the Customer Relation Department is responsible for checking the status of the loan In case of detecting abnormal signs or risks, the staff can request for unexpected examination  When detecting signs of risk and/or customers being classified as bad debts, the Customer Relation staffs immediately identify the nature, causes and level of risk In case of assessment of possible damages to VPBank the Customer Relation Department shall: o Report directly to the higher level in charge of direct management (director of the department, etc ), and propose necessary measures such as suspension of new lending, implementation of managing deposit account more closely o Marking, re-rating client’s credit if necessary o Monitor and implement approved handling measures xi) Credit Adjustment  Based on the actual situation and new demands of the customers arising after the time credit was approved, the Customer Relation Department shall consider adjusting credit for clients  The procedure for approving credit adjustment is the same as the credit procedure approval mentioned above xii) Debt Collection and Recovery  Within 10 days prior to the due date, The Department of Debt Management lists all due debts to be transferred to the Customer Relation Department to prompt debt remittances  The Customer Relation Department composes a notice of due debt according to form 7.1 Due notice is sent to the client at least working days before the due date of the loan    In the case where a client is unable to pay the debts on time, depending on 21 Internship Report Banking Academy subjective reasons from the client or objective reasons, the staff shall propose appropriate measures to competent authorities for decision: o Adjusting credit o Immediately apply measures as for loan with risk signs  On the due date, staff from Debt Management Department calculates, re- checks interest, fees, value of the due debts and report back to the head of the department and announce Account Management Department to collect debts  In case of inadequate recovery, Debt Management Department staff monitors the automatic system transfers the debt to overdue debts and timely report to Customer Relation Department for coordinated implementation according to the process of dealing with overdue debts xiii) Handling overdue debts  When the loan becomes overdue debt, the Loan Management Department shall immediately notify the Customer Relation Department continues to remind customers and propose appropriate measures  Depending on the nature of the overdue loan, at least once a month, the Loan Management staff must continue to send a debt collection notice to the clients until they complete the debt repayment obligation  In case of necessity or maximum after notices, the staff of Loan Management Department must propose to the head of the department to work with authorized representative of the customer to collect the debt directly 29/03 – 12/04: In the next stage, I was able to apply my knowledge with the help of Mr Duy and the staff at the branch They always supervised and checked my work Since then, I knew what I was missing and where to go wrong Moreover, I had the opportunity to be Mr Duy's assistant and arranged meetings for him with important customers In my freetime, I spent on reading and checking the loan documents Thereby, I could understand the operation of this department better Corporate bankers require extreme flexibility and adaptability because there will be a type of customers who are too difficult to please them Besides, they also need to have good verbal and written communication skills as well as negotiating skills for customers   22 Internship Report Banking Academy who want to cooperate with the branch for a long time One thing to mention is that the small meetings I attended Despite only supporting other members to present about the executive direction of the department, it was still really useful for me 26/04 – 20/05: On the last days of my internship, I searched for specialized information to complete my report The last day to stay at VPBank Kim Lien branch, everyone held a sweet farewell party months, although not a long time, but also help me to improve many skills for myself, improve knowledge and most importantly, experience working as a professional banker 2.4 Critical Analysis In order to survive and develop a lending activity for small and medium enterprises, efficiency is an important condition Therefore, to improve efficiency also means financial talents and capacity operations to create business volumes that accumulate and expand Contributing to consolidating and strengthening lending activities for Small and Medium enterprises of both VPBank system in particular and VPBank Kim Lien branch in general, we have to concern five factors including: policy and operation strategy, human resources, scale of operation, organizational structure and measures of application All such things will be discussed in SWOT as follows 2.4.1 Strength Through the actual data and basic analysis of the lending activities’ situation of VPBank Kim Lien branch for SMEs in the last years (2016-2018), we can see that the branch has achieved these the following results: a, Constant improvement in processing loan application In order to meet the development needs of the country, the integration needs of the economy, the fierce competition in forming a series of reformed banks, the branch has renewed in many aspects Lending activity is the main incomegenerating activity for the bank, therefore, the branch is always interested in and has strategies to expand lending market share under the direction of the State, the leadership of the State Bank of Vietnam By maintaining the long-term relationships   23 Internship Report Banking Academy with banks, corporations, and large enterprises, the branch also extends its reach to SMEs b, Decrease in overdue debt From the strengthening of appraisal and inspection, the overdue debt ratio in the branch's lending activity was only 0.97% in 2018, particularly for SMEs this rate was only 37% This was a good result in lending to SMEs of VPBank Kim Lien branch, especially in the context of the increase in non-secured loans ratio over the years Table 4: Overdue debt situation of VPBank Kim Lien branch (unit: million VND) 2016 Targets 2017 2018 Amount of Money % Amount of Money % Amount of Money Total outstanding loans 907.901 100 1.126.252 100 1.254.722 100 Overdue 9.442 1,04 13.627 1,21 12.171 0,97 Lending to SMEs 83.341 100 204.301 100 281.545 100 Overdue 375 0,45 1.348 0,66 1.042 0,37 Overdue debt ratio for SME loans in total overdue debt 3,97 9,89 % j 8,56   (Source:Customer relations department of VPBank Kim Lien branch) c, Good combination between expansion of lending and SME credit’s quality In parallel with the expansion of lending in width, the SME credit’s quality was currently well controlled This showed that the branch made a good combination of widening the loan by width and depth In parallel with the expansion of lending scale, SME Client Department also monitored and evaluated loans, conducted appropriate debt classification Besides they also took appropriate measures in debt collection of customer groups with declining production situation and weak financial situation   24 Internship Report Banking Academy d, Well – trained staff The satisfaction level of SMEs for branches is increasing Because credit officers are constantly equipped with soft skills to serve communication as well as high expertise, professionalism, enthusiasm to meet the needs of customers Moreover, the branch has also increased information exchange with each customer This plays a particularly important role in understanding to satisfy customer expectations Credit activities, especially lending to SMEs, are focused by the branch and always innovate the rational and effective lending structure, with the desire to respond the investment needs of the society In addition, the branch has continuously expanded its network, established transaction offices and transaction points in the area, as well as constantly renovated the system, improved the quality of personnel 2.4.2 Weakness a, Limitation in the proportion of SME’s outstanding loans The scale for SMEs to borrow is expanding and increasing year by year, but the proportion of SMEs' outstanding loans is still not really large compared to the loan balance of the branch This figure is the highest at 22.44% in 2018 b, Limitation in the form of lending to SME With a limited scale, SMEs often use loan products on a one-time basis, as well as principal loans The remaining forms are rarely used by the branch to provide credit to SMEs, which indicates that the branch has not really gone into understanding credit products with the aim of satisfying the diverse needs of customers The branch's SME lending methods are monotonous and rigid, failing to meet the increasingly rich and diverse needs of each customer, without preferential policies and effective priorities aimed at attracting more customers to use This is a huge limitation for businesses, especially in the current period, SMEs desperately need capital to invest in business expansion c, Limitation in the capital sources The capital for lending to SMEs did not have their own funds, especially, the medium and long-term capital sources of the branch was limited   25 Internship Report Banking Academy while the investment needs for development of enterprises in general and SMEs in particular was great This caused an imbalance in the capital supply to SMEs 2.4.3 Opportunities Keeping close to the orientation of the industry, as well as coming to the goal of economic development of Hanoi capital and also under the direction of the State Bank of Vietnam, VPBank Kim Lien branch is determined to further improve the quality of governance and administration, along with implementing the assigned tasks in order to overcome the shortcomings over the years Specifically, the branch has set out the strategic policies to guide the expansion of SME lending such as growing credit, diversify banking activities, products and services to satisfy customers’ needs With the most frequent customer classification organization and customer care plan, along with the accompanying incentives, VPBank Kim Lien branch will attract a large number of customers Besides, it always maintains stability with big customers Credit structure continues to be renewed In addition, increasing the proportion of medium and long-term loans and continuing to expand loans without asset security will create the best conditions for SMEs to develop With a team of credit officers with a sense of discipline, responsibility, well performing the appraising task, considering and deciding loans, strictly controlling the process of using customers' loans and recovering debts full principal and interest for each term, the branch will not incur new overdue debt 2.4.4 Threatens Many factors have an impact on the development of banks' lending activities to SMEs And those factors are from the bank or the businesses or from within the macroeconomic environment Credit policy has a great influence on branch lending for SMEs Credit policies of VPBank Kim Lien branch often change from time to time, depend on the macro-regulation of the state bank and the capabilities and conditions of the banks themselves In case it is loosened: the term of a longer loan, the maximum loan limit for an extended customer means that the bank will face great competition, so the preferential policy good customer, risk control limit is not too strict, appropriate interest rate However, in some cases, because the economy is too hot, the central bank wants to curb that development or when the situation of enterprises is poor, banks need to improve credit quality then credit policy will be more tightened, and will make it difficult for enterprises to access capital   26 Internship Report Banking Academy Another factor affecting the development of bank lending to SMEs is the discrimination of loans between large firms and SMEs The psychology of distinguishing loans between large enterprises and small businesses stems from the cause of fear of risks and large transaction costs of banks VPBank Kim Lien branch always put safety goals first, attaches importance to quality than quantity, so it is always psychological to keep a relationship with a small number of large enterprises instead of a large number of SMEs                                                                               27 Internship Report Banking Academy CHAPTER 3: RECOMMENDATIONS 3.1 Diversify lending activities for SMEs It can be said that SMEs are a large group of customers, rich in diversity and characteristics Therefore, to be able to exploit this great potential source and at the same time serve the customers well, the branch must constantly create and expand new forms of credit in line with the diverse and complex growth of SMEs Along with the introduction of products and services to satisfy the needs of customers and branches, it is necessary to have risk control mechanisms corresponding to them In the past, banks often tend to provide the same types of products and services to SMEs whether small or medium-sized enterprises But now, banks have understood clearly the different needs of these two segments VPBank can support by cooperating with economic experts to provide businesses with the advice they need and suit their demands Medium-sized enterprises often have a greater requirement for tailored solutions, not just basic banking transactions VPBank Kim Lien branch can enhance product types such as strengthening unsecured loans and SME loans combined with opening accounts and associated cards at VPBank 3.2 Develop flexible interest rate mechanism for SMEs to attract customers Besides, the bank also needs to apply preferential interest rates to SMEs which have a long history of relations with VPBank and new SMEs in order to open relationships Enterprises have different production and business cycles VPBank Kim Lien branch needs to base on two cash flows: capital mobilization (input) and lending (output) to provide an appropriate interest rate The bank must divide the lending interest rate into different terms corresponding to the deposit interest rate in each term, avoiding the situation of lending interest rates Input interest rates are smaller than output rates, non-term deposit rates are lower than 3-month deposit rates, 3-month deposit rates are lower than 6-month deposit rates Therefore, lending rates follow many terms like months, months will be based on the corresponding term deposit rates   28 Internship Report Banking Academy 3.3 Develop a marketing strategy with the goal of attracting SME Building a marketing strategy can be said to be one of the key tasks in 2019 and the coming years Exactly, deploying to a program of dissemination and publicity in the whole banking system in general and VPBank Kim Lien branch in particular 3.4 Enhance consultancy activities for SMEs Enhancing consultancy activities for small and medium enterprises is a solution to attract and create the Customer’s commitment to VPBank branch The branch provides information on the financial and economic situation, introduces business opportunities, guides procedures, and can also introduce investment partners / suppliers to customers through multiple channels other In common with that, VPBank Kim Lien branch is also able to support typical plans to participate in training courses, exhibitions, promote trade relations, trade fairs to introduce products and technology transfer among domestic and foreign enterprises 3.5 Strengthen staff work Last but not least, the level of credit officers is an important factor affecting the development of lending to businesses in general and SMEs in particular as well as the lending efficiency of a commercial bank In parallel with the allocation of sufficient number of staff suitable to the number of customers, it is necessary to grasp their level thoroughly to agree on the views and awareness of the need to expand SME customers, train skills and in-depth knowledge about serving them   29 Internship Report Banking Academy CHAPTER 4: CONCLUSION My internship program in SMEs Division at VPBank Kim Lien branch led to one of the greatest summers of my life I not only had practical skills but also the opportunity to meet many wonderful people Also, I was able to contribute to SME at VPBank by supporting and working on projects during my internship process Thanks to these experiences, I can broaden my horizons in every field, improve my ability to think logically, develop financial analysis skills With very basic studies in the scope of a graduation thesis, this article has partly clarified the basic issues about the status of SME lending at VPBank Kim Lien branch and also raised some solutions, proposed to develop SME lending activities for this branch and relevant agencies at all levels Through all of the above studies, it is shown that the lending situation of SMEs at VPBank Kim Lien branch has been improved in parallel with the need for attention and coordination of departments and agencies at all levels and the SMEs themselves to lend SMEs at VPBank Kim Lien branch in particular and the entire banking system in general to best meet capital needs timely for SMEs in the process of economic integration Once again, I would like to thank the help of the instructor - Assoc Dr Dinh Thi Bac Binh and credit bureau of VPBank Kim Lien branch have created conditions for me to successfully complete this report   30 Internship Report Banking Academy REFERENCES The data provided for internship students by VPBank Kim Lien branch https://www.vpbank.com.vn/sites/default/files/pictures/VPBank_AR_2018_ VIE_v1_4_Final_Spreads_Online.pdf Financial statements of VPBank 2016 – 2018 https://www.vpbank.com.vn/bai-viet/gioi-thieu-chung/lich-su-hinh-thanh-vaphat-trien   31 ... Summarize and analyze gathered information for the internship report 26/04-20/05 Accomplish the internship report and ask for certification of internship Thanks to the introduction of the Banking... thematic topic are honestly derived from the internship unit Hanoi, April 24th 2019 Huyen   Internship Report Banking Academy ACKNOWLEDGEMENTS To complete this report, I sincerely thank all lecturers... warmly After that, we exchanged and discussed my internship plan Mr Duy   17 Internship Report Banking Academy commented on my sketch for this internship and offered solutions to improve it He