Solution to reduce bad debt at vietinbank – gia lai branch in the period 2017 2019

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business DUONG PHUONG LINH SOLUTION TO REDUCE BAD DEBT AT VIETINBANK – GIA LAI BRANCH IN THE PERIOD 2017 - 2019 MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2020 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business DUONG PHUONG LINH SOLUTION TO REDUCE BAD DEBT AT VIETINBANK – GIA LAI BRANCH IN THE PERIOD 2017 - 2019 MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: DR LE THI THANH XUAN Ho Chi Minh City – Year 2020 TABLE OF CONTENT Cover page Table of content CHAPTER INTRODUCTION 1.1 Overview introduction about Vietinbank CHAPTER PROBLEM CONTEXT CHAPTER PROBLEM IDENTIFICATION 10 3.1 Symptoms Analysis 10 3.1.1 Bad debt increased at Vietinbank - Gia Lai Branch from 2017 to 2019 10 3.2 Potential problems 12 3.2.1 Internal problems 12 3.2.1.1 Weak loan portfolio management 12 3.2.1.2 High workload 13 3.2.1.3 Employees lack of experiences and competences 14 3.2.1.4 Loose process of loan management 15 3.2.2 External problems 16 3.2.2.1 Society problems 16 3.2.2.2 Problems from customers’ side 17 3.3 Problem validation 19 3.4 Problem consequences 20 3.4.1 Reducing profit of the bank 20 3.4.2 Affect the bank’s reputation 21 3.4.3 Indirect affect to other banks 21 CHAPTER CAUSES 23 4.1 Possible causes 23 4.1.1 Internal causes 23 4.1.1.1 Lack of full awareness of loan portfolio management 23 4.1.1.2 Tendency to follow immediate but lack of durable profit 24 4.1.1.3 Inadequate information analysing and forecasting 24 4.1.2 External causes 25 4.1.2.1 Unpredictable changes of macroeconomic environment 25 4.1.2.2 The regulatory environment with the guidance and supervision of the Central bank has not actively supported commercial banks in loan portfolio management 26 4.1.2.3 The limited activity of the domestic financial market has limited banks' ability to use a variety of tools to adjust the loan portfolio 27 CHAPTER SOLUTIONS 30 5.1 Alternative solutions 30 5.1.1 Changing current loan porfolio management method 30 5.1.1.1 Diversify the credit portfolio by economic sector 31 5.1.1.2 Diversifying the credit portfolio by type of business 32 5.1.2 Developing a human strategy in accordance with risk management requirements 32 5.1.3 Constantly renovating the training and professional development for staff at the bank 33 5.2 Solution validation 34 CONCLUSION 38 CHAPTER SUPPORTING INFORMATION 39 6.1 Methodology 39 6.2 Interview transcript 39 List of tables List of figures List of diagrams Executive sumary Reference Appendix LIST OF TABLES Table 1.1 Shareholer structure by ownership ratio which holding 5% or more of the charter capital Table 1.2 Level of Vietinbank Branch Table 2.1 Credit balance depend on customer category from 2017 to 2019 Table 2.2 Corporate customer classification principle Table 2.3 Credit balance classification depend on loan duration Table 2.4 Credit balance and bad debt of banks in Viet Nam in 2019 Table 3.1 Debt classification regulation Table 3.2 Debt classification in Vietinbank – Gia Lai Branch in period 2017 – 2019 LIST OF FIGURES Figure 1.1 Shareholer structure by ownership ratio Figure 1.2 Vietinbank Gorvernance model and structure Figure 1.3 Organisation chart Figure 1.4 The short – term loans procedure LIST OF DIAGRAMS Diagram 3.1 Initial Diagram of symptom and potential problems of Vietinbank – Gia Lai Diagram 3.2 Initial Diagram of symptom, potential problems and problem consequences of Vietinbank – Gia Lai Branch Diagram 4.1 Initial Cause and effect map Diagram 4.2 Final cause and effect tree map EXECUTIVE SUMARY Risks are always present in the operation of commercial banks today, including Vietinbank Banks always try to develop credit scale but at the same time ensure safety in operations The rapid increase in bad debt can lead to serious consequences, possibly even bankruptcy of the bank As one of the credit-scale branches in the top of the big branches of the Vietinbank system, Vietinbank Gia Lai branch has always controlled the bad debt situation since its inception However, in the past years, the rapid increase of bad debt has affected many aspects of the Branch's business operations Therefore, the urgent need is to find the underlying causes that lead to the rapid increase of bad debt problems in recent years to find suitable solutions for sustainable development Author conduct this research to study the business activities of Vietinbank – Gia Lai Branch, especially focus on the bad debt increasing in the period 2017 – 2019 The method of comparison, interviewing were used to find out the main problem the Branch is facing, the main cause leading to the problem and recommend some possible solutions to deal with the problem Author hope that the research will contribute a small effort in helping the organisation develop and gain maximum profit in the future CHAPTER INTRODUCTION 1.1 Overview introduction about Vietinbank Vietinbank was established in July 8th in 1988 in accordance with Decree No.53/1988/NĐ-HĐBT by the Minister Council After more than 30 years development, from the beginning equity with just 22 billion Viet Nam dong, at present Vietinbank has archieved the equity beyond 67,455 billion Viet Nam dong (more than 3,000 times higher) while authorized capital is 37,324 billion Viet Nam dong Beside that, total assets of Vietinbank also increased from 718 billion Viet Nam dong in 1988 to nearly 1,164,435 billion Viet Nam dong in 2018 which means encreased more than 1,600 times At the beginning, all system of Vietinbank just had 11,380 employees with the structure including headquater in Hanoi (under 100 employees), 32 level I branches and 42 level II branches Now all the system has nearly 23,000 employees who are working at headquater in Hanoi, representative offices, career units and 155 branches Vietinbank has not only operated in Viet Nam but also in other countries Vietinbank has established a 100% capital bank in Laos, branches in Germany and set a representative office in Myanmar At this time, Vietinbank has cooperation with more than 1,000 banks of more than 90 countries all over the world Moreover, Vietinbank also contributed capital in Indovina Bank which is known as the most efficient joint-venture bank in Viet Nam Its mission is “To be No.1 bank in Viet Nam baking system, providing modern financial and banking products and services with full utilities and meeting international standard” The vision of the organisation is “To become a leading bank in Viet Nam and a regional player, being modern and multi-functional that conforms to international standards” State Bank of Viet Nam 5% 10% MUFG Bank, Ltd 20% 65% IFC Capitalization (Equity) Fund, L.P Other shareholders Figure 1.1 Shareholer structure by ownership ratio (Source: Vietinbank annual report 2018) Table 1.1 Shareholer structure by ownership ratio which holding 5% or more of the charter capital Shareholder structure Number of shares Ownership Percentage (%) 2,400,204,956 64.46% 734,604,384 19.73% Fund, L.P 200,864,399 5.39% Other shareholders 387,730,817 10.41% 3,723,404,556 100% Central bank of Viet Nam MUFG Bank, Ltd IFC Total Capitalization (Equity) (Source: Vietinbank annual report 2018) Figure 1.2 Vietinbank Gorvernance model and structure (Source: Vietinbank annual report 2018) In the past few years, Vietinbank has always been one of banks have breakthrough growth, develop modern products and services, develop efficiently and sustainably In 2017, Vietinbank made an impression in deploying the new CoreBanking successfully This is the largest and the most complex project in Viet Nam Banking Industry until now and has met the technology requirements for longterm and sustainable development At the same time in 2017, Vietinbank also released to the public 4,200 billion Viet Nam dong secondary bonds This is the most enomous amout of secondary bonds among Viet Nam Commercial Banks which has confirmed the trademark and position of Vietinbank on the market Beside that, Vietinbank has archieved many arwards and accolades in 2018 such as First-class Labour Medal (for the second time) and Government’s Emulation Flag, Top 400 Most Valuable Bank Brands Worldwide, Top 2000 Largest Enterprises Worldwide, Viet Nam Value, Viet Nam Excellent Brand, Best Trade Finance Service,… In 2018, total assets of Vietinbank was more than 1.16 million billion Viet Nam dong, increased 6.3% when compared with 2017 and increased 22.78% when compared with 2016 In this year, Vietinbank continued to be the commercial bank which had largest asset scale in the market However, the competition in the banking system to win and retain customers is increasingly fierce Vietinbank is established in 1988 After 31 year of development, Vietinbank has affirmed its position as a leading commercial bank, holding a key role of Viet Nam's curency market Vietinbank has a strong network of 148 branches in 63 provinces and cities nationwide Vietinbank – Gia Lai Branch is known as a large branch in the system with trillion dong of capital and outstanding loans of up to 13 trillion dong Vietinbank – Gia Lai Branch was established in 1999 The organisation structure is as the figure below: Figure 1.3 Organisation chart (Source: Vietinbank – Gia Lai Branch internal report) The main departments which bring profit to the bank is corporate department and retail department Normally, it often takes two weeks for a new corporate customer and a week for old customer to finish a procedure to borrow the money from the bank Firstly, the customer has to prepare all the documents meet the bank requirement Secondly, the bank officer, normally the corporate banking division, will verify the documents and prepare a report This step is the one which need most of the time in the procedure and often take for a week Afterthat, the report will be send to the upper level in the bank in order to be approval After being approval, the supporting credit department will check again all the document to make sure that there is no mistake And finally, they will the financing for customer If there is any mistake in any step of the procedure, the total time will be longer Short – term loans procedure of corporate customers when they first time borrow money at Vietinbank includes steps, which are: Step 1: Credit officer collect documents from customers and check them At this step, credit officer often present to customers about loan conditions and instructions for establishing the loan documents Also, credit officer will check the completeness and accuracy of legal documents, loan documents, collateral records and especially the legality of the loan purpose After checking the documents, credit officers will depend on the policies and the orientation of Vietinbank in order to identify whether customers are subject to credit restriction or non-credit extension or not Step 2: Credit officer review credit conditions, prepare and submit appraisal report Depending on the documents collecting from customers and other sources, credit officer analysis and review the financial situation, business plan and ability to repay principal and interest of customers Credit officer will give comments and suggestions on the lending method, loan amount, loan duration, loan security measures, disbursement schedule and other conditions Step 3: Appraisal report approval Depending on the appraisal report of Corporate Customer Department, the Board of Directors will consider and decide the credit limit of customers In case of exceeding the authority of the Branch’s Board of Directors, the report will be submitted to higher level, normally related to the Head Office, to get approval CHAPTER SUPPORTING INFORMATION 6.1 Methodology The methods used in the research process including statistical research method, comparative research method, general method… In addition, the research project also uses basic theories and scientific theories about credit risk and credit risk restriction 6.2 Interview transcript Interview transcript Interviewer: Duong Phuong Linh Interviewee: Mr Dang Quoc Thinh - Director of Vietinbank Gia Lai PL Good morning Mr Thinh How are you today? QT Hi Linh I’m good today Do you need my help? PL Yes, of course Today I need you to help me out with an interview to share me your thingking about the current situation of the Branch It’s may take 15 – 20 minutes Are you ok with it? QT Ok Linh, you can ask me about what you’re concerned PL I have read the Branch internal report in years from 2016 to 2018 and I see that the bad debt ratio has been increasing rapidly Can you explain more about this? QT Yah, actually the Branch now is going through a tough time As you’ve already known, the bad debt ratio was increasing rapidly in recent years because we have some customers which have large amount of credit balance but have difficulty in repaying the loans, for example Hoang Anh Thanh Hoa Hydroelectric JSC with more than 1,300 billion dong or the Duc Long BOT project with 980 billion dong This has lead to the amount of bad debt increased a lot, especially last year PL So what problem you think the Branch is facing now? QT The problem which the bank is facing is the number of current customers is not big enough Most of the credit balance is focused on a small number of main customers Therefore, if just one of these customers has difficulty in business, it will affect a lot to the credit balance structure of the bank Beside that, due to the region’s characteristic, most of the loan purpose is related to agriculture (mainly 39 coffee and pepper) Most of the coffee and peeper which is traded is raw materials And this is depend a lot on the weather conditions That will lead to a consequence that if the weather is not good, the crops will be effected and cause a huge impact on the bank PL So you mean that this is the main problem of the Branch? QT Yes The number of customers is too small and 80% of the total credit balance is just depend on only 20% number of customers This means that this group of customers will have great influence on the operation of the Branch If only some customers in this group can not payback or they move to another bank, the Branch’s profit will be affected immediately PL There is opinion that employees who lack of experiences and competences will lead to this problem What you think? QT Experiences and competences of employees is very important In recent years, there are lots of new employees has been recruitment due to high demand This has led to many employees were graduate students who didn’t have enough experiences Beside that, cause some good employees has moved to another bank, it’s very difficult for Vietinbank – Gia Lai branch to recruite and train new employees to meet the requirement in a short time PL Why you think that the management of the loan portfolio has not been given enough attention? QT Actually, most of the managers in the Branch still cannot think out of the box I means their way of thinking and acting are according to their habit With the mindset that the main economic activities are related to agriculture, they have just focused on loan on this purpose and of course, dismissed other loan purposes Usually at the beginning of the year, I ask the heads of departments to set up a specific development plan for their department and review it monthly In fact, most of the chiefs and deputy managers when assigned targets at the beginning of the year not have a specific development orientation No industry group has been given a priority to develop, resulting in a spread in finding potential customers and pursuing them This will greatly affect the goal completion rate of the rooms 40 PL How about other causes? QT For the pursuit of profit that ignores capital safety regulations, I think this is not the case at the Branch All employees at the bank are people with good moral qualities and ability to withstand high pressure of work The Bank also regularly inspects and signs of violations and has yet to detect errors related to this issue As for external influences, other banks will be similarly affected However, the expression of each bank is completely different Therefore, it cannot be said that these are the main reasons for the ineffective management of the credit portfolio at the branch PL What you think the main cause? QT For me, all the causes lead to the current problem are important However, the root cause is originally comes from the human resouces I suppose that the awareness of loan portfolio management is an essential part to manage the loan porfolio efficiently Most of the managers at the Branch are in middle age now, which make them don’t have enough knowledge and acumen in changing in the way of their thinking about porfolio In order to solve the problem, it need a detailed and thorough solutions And the most important work the Branch has to is to improve not only the managers’ mind but also which of all the employees about loan portfolio management PL How about the solution? QT I always want to focus on the employees cause the people is the most important in an organisation Therefore, I want to perform training about loan portfolio management for all the employees to help them gain knowledge and work more effectively Interviewee: Mr Nguyen Tan Viet - Deputy Director of Vietinbank Gia Lai PL Hi Mr Viet Can I interview you some issues about Vietinbank – Gia Lai Branch? TV It’s my pleasure What you want to know? PL What you think about current situation of the Branch? TV As I see, our market share in Corporate Customers is still very low There are too 41 many customers who don’t use any services of the Branch Therefore, development potential is very large Many of our credit officers just carry old thoughts and think in the rut when finding customers just in agriculture field and tend to reject any new project Also our region’s strength is agriculture, especially cash crop, the area still has other economic groups This is also depend on the employees’ competences but it is more related to their way of thinking about portfolio management Because of that, I think business fields of corporate customers need to be broaden as much as possible It will not only bring the stable profit to the Branch but also help reduce the credit risk PL Do you think CIC work helpful for the Branch? TV For me, at present, the information from CIC is just help us know about the size loan of customers at other banks and whether they have bad debt or not It cannot show us the warning if customers really risky Therefore, I agree that the Central bank need to upgrade the system and collect more information to help commercial banks in analysing and forecasting customers loan status PL What you think about the role of Central bank in supervising Commercial Bank operation? TV From my point of view, the Central Bank just has the overal supervision for all of the banks on the market Because the procedures required to issue a specific regulation take a lot of time and through multiple levels of approval, the regulations of the Central bank will often be outdated or even no longer suitable for market changes Although this issue has also improved significantly, it has not been able to make a great impact on the loan portfolio management of commercial banks Interviewee: Ms Nguyen Thi Hoa, chief accountant of Duc Phu Gia company PL Hi Ms Hoa, how are you today? Ms I’m fine, thank you Hoa PL Can you share with me your experience when using Vietinbank service? Ms My company has borrowed money from Vietinbank Gia Lai from 2016 until now Hoa The company at present owns hotel chains named Cicilia which is located in Nha 42 Trang, Da Nang and HCM city I know that it takes a lot of time to collecting data, checking invoices and disburesement documents and completing the loan approval However, I was very satisfied with the Vietinbank employee’s attitude and support Beside that, I also appreciated Vietinbank in having new ideas to reducing the time of waiting and encreasing the productivity PL How about Vietinbank employees? Do you satisfy with the service? Ms I personally prefer working with experienced and qualified credit officers They Hoa can even advise me for effective business investment options Therefore, I think working capacity is very important It is not only useful for credit officers themselves but also creates their attraction and engagement with customers If Vietinbank can regularly train to develop its professional competence, it will be a major competitive advantage for other banks Interviewee: Mr Chung Quang Vu - credit officer PL Hi Mr Vu What you feel about your current work? Do you feel stress? QV As a credit employee, the targets set for me at the beginning of the year are always high Employees nearly have to think about the targets every day and try to archieve them However, the competition in the industry now is extremely intense.In some cases, we are forced to find ways to bypass the rules in order to have new customers Although I know that it is very important to observe the cash flow and business situation of customers to realise any sign of bad debt, I don’t have enough time for this activity My KPI is quite high and I need to find lots of new customers to archieve the KPI I often feel stress due to the huge amount of work Therefore, it is hard for me to manage time for so many activities such as finding new customers, observing the cash flow and business situation of customers, realising sign of bad debt and dealing with bad debt Interviewee: Ms Le Thi Nhu Kieu- bad debt dealing department’s employee PL Hi Ms Kieu, can I interview you some issue related to your current job? NK Of course yes PL What you think about bad debt at the Branch? 43 NK As from my understanding, the bad debt increased this year is related to many loans in the years before It could be a good loan at that time but because customer management competences is quite loose and loan management process has many gap has led to this situation 44 References Viswanadham N, Nahid B Determinants of Non Performing Loans in Commercial Banks: A Study of NBC Bank Dodoma Tanzania International Journal of Finance & Banking Studies 2015;4(1):70-94 Reinhart CM, Rogoff KS From Financial Crash to Debt Crisis Cambridge: National Bureau of Economic Research, Inc.; 2010 p 15795 Jakubik P Macroeconomic environment and credit risk Czech Journal of Economics and Finance (Finance a uver) 2007;57(1-2):60-78 Richard E ``Factors that cause Nonperforming Loans in Commercial Banks in Tanzia and Strategies to Resolve Them`` 2011 Keeton WR, Morris CS Why banks’ loan losses differ Economic review 1987;72(5):3-21 Agarana M, Bishop S, Odetunmibi O Optimization of banks loan portfolio management using goal programming technique International Journal of Research in Applied Natural and Social Sciences (IMPACT: IJRANSS) 2014;2(8):43-52 Swalehe O A Study of Factors Leading to Effective Loan Repayment in Tanzania Anvesha 2018;11(1):14-22 Waweru NM, Kalani VM COMMERCIAL BANKING CRISES IN KENYA: CAUSES AND REMEDIES Global Journal of Finance and Banking Issues 2009;3(3):23-43 Beisland LA, D’Espallier B, Mersland R The Commercialization of the Microfinance Industry: Is There a ‘Personal Mission Drift’ Among Credit Officers? 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A tentative answer based on individual bank loan portfolios A Tentative Answer Based on Individual Bank Loan Portfolios (February 28, 2005) 2005 35 Edmister RO, Srivastava SC Loan portfolio composition and management control of bank risk: An empirical investigation Journal of Applied Business Research 1992;9(1):119 36 Sounders A, Allen L CREDIT RISK MEASUREMENT, John Wiley&Sons Inc, New York 2002 37 Rossi SP, Schwaiger MS, Winkler G How loan portfolio diversification affects risk, efficiency and capitalization: A managerial behavior model for Austrian banks Journal of Banking & Finance 2009;33(12):2218-26 38 Jones MK, Jones RJ, Latreille PL, Sloane PJ Training, job satisfaction, and workplace performance in Britain: Evidence from WERS 2004 Labour 2009;23:139-75 Apendix Criteria to classify Branches Criteria Calculation Points scale A/ Group of criterias measuring effectiveness (H) Credit H1 = Average total credit balance of the year (H1) growth x 100% rate (H2) Beginning credit balance The Group 60 points Group 40 points Group 20 points income Group 60 points Group 40 points ≤ 0% 20 points from Average total credit balance of the year (H1) 5% 100 points Group 80 points Group x 100% Group 60 points Group 20 points Net income from interest and fees H3 = points 80 points ratio of 8% 100 Group Group net points 80 points H1 - Beginning credit balance H2 = 100 Group Group Credit rtion 25% Group scale Propo 40 points 12% interests and fees (H3) B/ Group of criteria of credit risk (Cre.KRIs) 40% 1.1 Debt quality criteria (R) 30% Bad (Bad credit balance + Credit sold to VAMC debt balance)ending and R1= x 100% ≤ 0.5% 0.5% 100 points - 80 points 10% debt (Total credit balance + Credit sold to 1.0% sold to VAMC balance) ending 1.0% VAMC 2.0% ratio 2.0% (R1) 3.0% - - > 3.0% Changi 100 points ng in 0% debt 0.2% and debt 0.2% R2 = R1ending - R1beginning - - 0.5% sold to 0.5% VAMC 1.0% 40 points 20 points ≤ 0% bad 60 points - 80 points 60 points 7% 40 points ratio > 1.0% (R2) 20 points 100 ≤ 0% New bad debt 0% Bad credit balance in the period points - 0.2% R3 = x 100% Ending credit balance + Bad credit ratio balance in the period (R3) 0.2% - 0.5% 0.5% - > 1.0% ∑Structual debt remaining group 1, group l debt (owe notes-watch) debt ending remaini ng group debt R4 = Ending credit balance 0.2% 0.5% 0.5% 40 points 20 points 100 ≤ 0.2% x 100% 60 points 7% 1.0% Structua 80 points points - 80 points - 60 points 3% ration 1.0% (R4) 1.0% - 2.0% > 2.0% Ending group debt balance R5 = 20 points 100 ≤ 0.2% points x 100% 0.2% Ending credit balance Group 0.5% debt 0.5% (R5) 1.0% 1.0% - - - 2.0% > 2.0% Credit balance has early warning at the R6 = 0.5% ratio - - 1.0% (R6) 1.0% - 2.0% > 2.0% Group debt overdue less than 10 days Group overdue less than 10 days Ratio (R7) R7 = Ending credit balance 0.2% - - 1.0% 1.0% 2.0% 60 points 1% 40 points points 0.5% 0.5% 80 points 100 ≤ 0.2% x 100% 40 points 20 points balance debt 2% points 0.5% Ending credit balance balance 0.2% 60 points 100 ≤ 0.2% x 100% 80 points 20 points end of the period EWS 40 points - 80 points 0% 60 points 40 points > 2.0% 20 points 1.2 Concentration / Portfolio structure criteria (T) Risk Weighted Assets (RWA) ending RWA/ Total 10% T1 = points x 100% Total Assetsending Assets 100 Group Ratio (T1) Group 80 points Group 60 points Group 40 points Group 20 points Corporate 5% Customer Segment 100 ≤ 45% Total credit balance of top biggest customers 45% points - 55% T2 = x 100% Credit balance Total credit balance 55% - 60% ratio of 60% 70% - 80 points 60 points 40 points biggest > 70% credit Individual balance 20 points Customer Segment custome rs (T2) 5% 100 ≤ 5% points 5% - 10% 80 points 10% - 15% 15% 20% > 20% - 60 points 40 points 20 points 5% C/ Management skill criteria (Q) - 20% Give points for the Director - Above years 35 points ce in - From to years 25 points credit - From to years 15 points - Below year points Time to - Above years 30 points work in - From to years 20 points manager - From to years 10 points - Below year points Target - Rank A++ 25 points completi - Rank A+ 20 points on level - Rank A 15 points - Rank B or no information due to new recruitment 10 points - Rank C points i If Q1 ≥ 10 years, Q4 is maximum 10 points Experien departm ent (Q1) level (Q2) in last year (Q3) ii If Q1 < 10 years, Q4 is calculated as below: Academi c level (Q4) - Master degree major in economic (full – time) 10 points - Bachelor degree major in economic (full – time) points - Other kinds: (i) College degree; (ii) Bachelor degree/master degree major in other sectors; (iii) Bachelor degree/master degree major in economic by points distance-learning, part-time learning… - Primary training, intermediate training… points D/ Operational risk rating (Op.KRIs) Operatio Depend on the result of operational risk rating of Branch at Very 15% 100 points nal risk the time of grading good rating Good Average Weak TOTAL 80 points 60 points 40 points Very 20 weak points 100% ... studied the situation of the branch in the period of 2017 - 2019, explored the problem of the symptom increasing bad debt, causes and proposed solutions to reduce bad debts in the coming time The topic... study the business activities of Vietinbank – Gia Lai Branch, especially focus on the bad debt increasing in the period 2017 – 2019 The method of comparison, interviewing were used to find out the. .. MINH CITY International School of Business DUONG PHUONG LINH SOLUTION TO REDUCE BAD DEBT AT VIETINBANK – GIA LAI BRANCH IN THE PERIOD 2017 - 2019 MASTER OF BUSINESS ADMINISTRATION