LV Thạc sỹ_Credit risk management in BIDV branch in hai phong

NATIONAL ECONOMICS UNIVERSITY ADVANCED EDUCATIONAL PROGRAM ***************************** Bachelor Thesis Credit Risk Management in Bank for Investment & Development of Vietnam branch in Hai Phong ACKNOWLEDGEMENT This report is the result of my internship in the Risk Management Department of BIDV – Dien Bien Phu, Hai Phong branch By that time, I have worked with a great number of people whose contribution in the research It is a pleasure to convey my gratitude to them all in my humble acknowledgement In the first place, I would like to express my thank to Mr… for his supervision, guidance, and encouragement I appreciate all his time and effort in helping me during the time of my internship I gratefully acknowledge all lecturers and officers from Advanced Program for their shared knowledge and experiences I would like to deliver my gratitude to all my friends in Advanced Class intake 50 Their support is one thing making this report possible Last but not least, many thanks go to all of staffs in the BIDV branch in Hai Phong generally, and in the Department of Risk Management particularly, for their warm treatments during my internship I am very grateful to Mr Hung, my supervisor in the office, for his encouragement and guidance TABLE OF CONTENT ABSTRACT ABBREVIATION LIST OF TABLES .7 LIST OF FIGURES .8 CHAPTER I: INTRODUCTION .9 1.1 1.2 1.3 1.4 1.5 Rationale Research Objective Methodology 10 Research Scope & Constraints 10 Thesis Structure .11 CHAPTER II: THEORETICAL BACKGROUND 12 2.1 Overview About Commercial Bank 12 2.1.1 Definition of Bank .12 2.1.2 Services Provided by Commercial Banks 13 2.1.3 Risks in Banking 15 2.2 Credit Risks In Banking 17 2.2.1 Definition of Credit Risk 17 2.2.2 Impacts of Credit Risks .17 2.2.3 Causes of Credit Risks .18 2.2.4 Reflecting Factors for Possible Credit Risks .19 2.3 Credit Risk Management 21 2.3.1 What is Credit Risk Management? 21 2.3.2 How does the Government Regulate about Credit Risk Management? 22 2.3.3 Is There Any Specific Method to Evaluate Credit Risks? 25 Financial ratios analysis 26 Credit analysis 26 2.3.4 Internal credit rating system .29 Credit review 30 Is There Possible Way to Hedge against Credit Risks? .31 CHAPTER III: CURRENT SITUATION OF CREDIT RISK MANAGEMENT FOR ORGANIZATIONS IN BIDV – HAI PHONG BRANCH .32 3.1 Profile Of BIDV And BIDV Dien Bien Phu, Hai Phong branch .32 3.2 Organizational Structure Of The Branch 34 3.3 Business Results Of BIDV – Hai Phong Branch During 2009-2011 .37 3.3.1 Profitability Analysis 37 3.3.2 Capital Mobilization 39 3.3.3 Credit Activities 42 3.3.4 Services Activities 44 3.4 Credit Evaluation System Of BIDV 45 3.4.1 Steps in Credit Granting in BIDV 45 3.4.2 Internal Credit Rating Process 47 3.4.3 Credit Granting Policies & Collateral Requirements .53 3.4.4 Credit Review Policy under BIDV .55 3.4.5 Connection between BIDV’s Credit Evaluating System and the Model of Cs of Credit Analysis .55 3.5 Performance Of Credit Risk Management In BIDV Branch 57 3.6 Evaluating Of Credit Risk Management In BIDV – Hai Phong Branch 63 3.6.1 Achievements in Credit Risk Management of BIDV branch 63 3.6.2 Shortcomings in Credit Risk Management of BIDV branch 65 CHAPTER IV: RECOMMENDATION 68 4.1 Recommendation To BIDV & The Branch 68 4.1.1 To Improve Qualification of Credit Officers 68 4.1.2 To Build Internal Information System 69 4.1.3 To Enhance Internal Supervision on Outstanding Debts 70 4.1.4 To Refer to Different Methods to Access Credit Ratings 72 4.1.5 To Diversify Borrowers Pool & Hedging Strategies 73 4.2 Recommendation To The Government & SBV .75 CONCLUSION 78 APPENDIX A: The Model Cs of Credit Analysis 79 APPENDIX B: Z-score Model 81 REFERENCE 83 ABSTRACT The goal of this internship thesis is to characterize performance of BIDV – Hai Phong branch in credit risk management and to highlight possible related problems during the 3-year period 2009-2011 The paper is going to analyze internal credit rating system of BIDV as well as to discuss its connection to international standards The real situation of credit risks in the branch will be determined basically through examining outstanding loans structure The results from this study helps to understand about the company’s business operation, focusing on credit risk management for organization customers, and to identify any shortcoming existing in the company’s management, so that suggestible actions should be undertaken ABBREVIATION  BIDV Bank for Investment and Development of Vietnam  SBV Stated Bank of Vietnam  Dep Department  Div Division  FDIC Federal Deposit Insurance Corporation  FTP Fund Transfer Pricing  EBIT Earnings Before Interests and Taxes  ROE Return on Equity  ROA Return on Assets  D/E Debt to equity ratio  C&R Vietnam Credit Information and Rating Company  CRC Enterprise Credit Rating Appraise Science Center  CIC Credit Information Center  VAS Vietnamese Accounting Standards  IAS International Accounting Standards  LIST OF TABLES Table 2.1: Risk Classification in Banking 16 Table 2.2: Debt Classification under Article of Decision no.493 23 Table 2.3: Maximum Rate to Calculate the Value of Collateral 24 Table 2.4: Credit Risk Minimization Methods .31 Table 3.1: Credit Rating for BIDV in 2010 33 Table 3.2: Operational Results of BIDV – Hai Phong branch during 2009-2011 37 Table 3.3: Capital Mobilization of BIDV – Hai Phong branch in 2009-2011 41 Table 3.4: Distribution of Annual Average Outstanding Debts by Customer Type 43 Table 3.5: Average Outstanding Debts Classification by Currency 44 Table 3.6: Financial Indicators in Credit Rating of BIDV 49 Table 3.7: Coefficients for Nonfinancial Indicators .51 Table 3.8: Credit Rankings under BIDV System 52 Table 3.9: Credit Policy in BIDV 54 Table 3.10: Debts Classification for BIDV branch under Decision no.493 60 Table 3.11: Provision for Loan Losses in BIDV branch 61 Table 3.12: Calculation for Expected Provisions for Loan Losses 62 LIST OF FIGURES Figure 2.1: Six Basic Cs of Lending 27 Figure 3.1: Organizational Structure of BIDV – Hai Phong branch .35 Figure 3.2: Revenues Structure of BIDV branch in 2009-2011 39 Figure 3.3: Capital Mobilization of BIDV branch in 2009-2011 40 Figure 3.4: Credit Structure by Instruments in BIDV branch in 2009-2011 42 Figure 3.5: Net Income by Service Lines in 2009-2011 45 Figure 3.6: Credit Granting Process in BIDV System 46 Figure 3.7: Internal Credit Rating Process for Corporate Customers in BIDV .47 Figure 3.8: Nonperforming loans in BIDV – Hai Phong branch 58 Figure 3.9: Overdue Debt Ratio .60 Figure 3.10: Charge-offs & Recovery in 2009-2011 63 10 CHAPTER I: INTRODUCTION 1.1 Rationale Credit activities have grown significantly for recent years, due to high demand of capital for investment However, it is also associated with increasing risks of losing money The economy generally and enterprises particularly has experienced many difficulties arising Banks are facing problems with possible credit default In fact, recently, the Stated Bank of Vietnam have adopted a new policy of classifying banks into different groups of credit lines in order to minimize credit risks for the whole economy Thus, credit risk management is the most critical issue for banks and other financial institutions nowadays 1.2 Research Objective This thesis is set out to characterize credit risk management operation for business customers in a BIDV branch located in Dien Bien Phu Street, Hai Phong city The study is descriptive, and is not intended to develop new theory or to extend existing theory For more specific, two research questions need to be answered: - How is the performance of credit risk control for business customers in BIDV - Dien Bien Phu, Hai Phong branch during the period of 2009-2011? Is there any success or problem existing in credit risk management, as well as suggestion of solutions? 1.3 Methodology In order to serve the goal of the paper as stated, the contribution of the study lies in assembling secondary data The data collected includes financial statistics which 66 of the system Up-to-dateness and accuracy are noticeable important elements Formation of adequate information system will help to reduce costs of appraisal in long-term, and provide a trustful source for examining overall information of a company Creation of a department for information management should be considerable Internal sources for information are consist of financial statements and documents related to establishment and operation of the firms, along with observing researches done by the bank’s own credit officers when collecting and confirming information disclosed by customers For information collected from internal sources, it should be sorted following different ways, such as economic sectors, date of contract binding, scale of credit, lending instruments, and so on Clear and variable classifications will make the bank easy to access and control information related to its customer External information sources includes database about customers in other financial institutions, public information, or experts’ reviews They are highly recommended since they give more objective view on financial health of customers 4.1.3 To Enhance Internal Supervision on Outstanding Debts In spite of the fact that the branch did a excellent work in managing impaired debts situation during 2009-2011, it should be not neglectful Several problems was necessary to be addressed in order to avoid potential exploding problems In fact, regarding to the economy faced downturns and many companies were experiencing difficulty to generate excessive earnings, amount of overdue loans had increasing at rapid speed Conceptually, those debts were in bad debts category, yet it contained significant risks Therefore, supervision on the performance of borrowers and their debt obligations has to be observed closely BIDV – Hai Phong branch should increase their frequency in checking quality of their customers, particularly the ones whose business situation is turning to be unfavourable for loan requests or commitments Repayment should be required in 67 installment basic to avoid long duration, thus high risk of default The branch needs to examine not just if customers are using the borrowed funds to serve rightful purposes stated in lending agreements, but also how well they are processing their operation in accordance of the proposed plan Appraising on collaterals must be done regularly to ensure the value of pledged properties is always in sufficient and available status to offset damages caused by default arising In Vietnam culture, relationship plays important role in society as well as business communication and operation For the customers who have long business relations with the bank, there is possible situation in which a credit officer carries out evaluating process only procedurally, without doing accurate assessment and verifiable reports Even if the loan request from that customer is ineligible, it may be still accepted, thanks to its long-term relations The bank should discourage this action to improve actively quality and explicitness of its whole system, especially under recent circumstance of the economy Strengthening practical authority of regulations in operation of the bank must be done in order to reduce irresponsibility and wrongdoings committed by employees in reporting the real situation of customers 4.1.4 To Refer to Different Methods to Assess Credit Ratings There are many reasons motivating BIDV to look for other evaluating methods as references to assess credit worthiness of the borrowers Firstly, although the internal credit rating process of BIDV does produce quantitative results, it depends heavily on qualitative analysis of creditors on loan requests and requesters’ financial and nonfinancial conditions Opinions of the appraiser play a significant role in forming final score and rank for a customer Thus, to ensure an objective result, it is wise for bank to examine other different evaluating methods Secondly, the internal credit rating of BIDV can be time-consuming The staffs need time to in order to collect, verify, and calculate Thus, alternative methods are suggested to provide a snapshot about possible financial health of the organization before detailed review is reported The third reason is that many different approaches means different views, thus the bank can summary and come up to more objective decision in credit activities 68 One of sources for rating references should be from credit rating agencies This also refers as external credit rating A credit rating agency is a company that assigns credit ratings for issuers of certain types of debt obligations as well as the debt instruments themselves Fitch, Standard & Poor’s, and Moody’s are the three most globally recognized corporation specializing in credit rating Conclusions made by those organizations have become standardized and benchmark indexes to gauge the performance and credit worthiness of any business entities Vietnam is home to a number of domestic organizations purposing to be providers of credit ratings, including the Enterprise Credit Rating Appraise Science Center (CRC), the Vietnam Credit Information and Rating Company (C&R), and the SBV’s Credit Information Center (CIC) Unfortunately, in reality, all of them have not contributed significantly in providing trustful and sufficient sources for examining credit ratings CRC has not released any report since it is a newly establishment Both C&R and CIC primarily issue raw data such as company profiles, but fail to provide explanations or criteria, functioning more as credit bureaus rather than credit rating agencies Because of increasing financial market expansion in Vietnam, presence of a standardized credit rating organizations is invaluable and considerable Another well-known method is the Altman Z-score formula for predicting bankruptcy The strong point of this pure quantitative method is to be easy-to-calculate statistical measure for financial distress status Using Z model can lead easily to clear conclusion Eventually, many empirical studies conducted by professional analysts under contexts of many countries have proved that this method is highly accurate at predicting a company's chances of survival, gaining it wide acceptance by auditors, accountants, financiers and managers Moreover, Altman did explain clearly high correlation existing between his index Z” and credit rating on corporate bonds given by S&P and Moody’s However, Z-score is flawed tool in catching understanding about actual credit worthiness of borrowers It focuses on forecasting probability of bankruptcy, rather than credit quality, although they are quite related to each other It also depends heavily on historical data while ignoring many other important items, such as the purpose and nature of loan, collaterals, non-financial factors, future impacts 69 of internal, external conditions and credit history Nonetheless, Z-score model should be considered thanks to its simplicity, less time-consuming and cheapness to calculation, but highly accuracy BIDV can apply this model, together with its internal credit rating, to have fast review on credit quality before official analysis is completed The detailed formulas for calculating Z-score can be found in the appendix B 4.1.5 To Diversify Borrowers Pool & Hedging Strategies BIDV – Hai Phong branch should increase the level of diversification in its investment portfolio Currently, the branch is facing concentration risks by focusing mainly on organization clients In fact, this sector of customers plays more than 98% of income sources of the bank Though it seems to be straightforward to maintain a major proportion of loans for enterprises as their nature of high potential earnings and volume of loan demanded as well as availability to access information, it is still not judicious to concentrate too much on only one type of customers Nowadays, many potentials have been recognized in lending for individuals In many countries, citizens tend to purchase their commodities using borrowed funds rather than pocket cash This provides significant beneficial incomes for the bank Also, consumption loans usually requires much smaller volume compared to lending to enterprises, together with large population of clients In overall, impacts of credit risks are less serious because of lower borrowed amounts and lower durations as the loans are often in form of installment repayment Therefore, in BIDV system, while still focusing on corporate sector, it is advisable to increasingly promote consumption loans Several typical products can be credit cards, overdrafts In those kinds of banking services, the bank can offer a revolving account and grant a line of credit to the consumer from which the user can borrow money for payment to a merchant or as a cash advance to the user Another well-known products can be loans related to special types of goods, such as automobiles, education, house construction, etc To motivate customers getting into services, some advertisement and special treatments should be applied Since lending is the most fundamental function of banks, credit risks always exists, as the banks lend their capital to borrowers who commit to repay in the future 70 However, carrying good strategies of hedging risks can protect the lending institutions from exposing to risks, offsetting negative outcomes resulted from default Besides of most common uses in the context of Vietnam, such as collaterals, constraints in credit line extending and allowances, others can be credit derivatives (options, swaps) and insurances Those advanced defensive methods are currently not popular in Vietnam due to lack of related regulations Also, BIDV needs to take more careful estimation in pricing for loans, by relying more on risk base, rather than applying a formal rate 4.2 Recommendation To The Government & SBV - The biggest reason triggering problems of credit risks is downturn in economic development Unstable economic environment leads to appearance of unfavourite conditions, making banks and enterprises difficult in running business Consequently, the government needs to concern about adopting appropriate policies to ensure stability in development of the economy as well as financial market Inflation needs to be controlled closely in order to reduce fluctuation of inputs’ prices and interest rates, so enterprises are guaranteed and stimulated to operate and grow stably, resulting in enhancing ability to repay their debts to the banks The government should give some supports, in form of financial packages or special treatments, to several sectors of economy or kinds of enterprises to assist their business development in the period of difficulty For example, a favor for peasants may be implemented to assist them in doing farming business, thus maintaining and developing agriculture Strong and comprehensive legal environment is a vital requirement Currently, although there are improvements, Vietnamese law system is not perfect yet There are a lot of unnecessary procedures, creating inconveniency for people and organizations to conduct business when they have to go through too much steps to achieve their final settlements Errors and contradictions existing in many legal documents can be a chance for wrongdoings fostered, causing harmful outcomes for organizations as well as the whole economy Moreover, the government must proceed several actions and policies to increase significantly degree of enforcement of issued legal statues to 71 enhance executing capacity in the society and economy Systematize law system is needed to facilitate unification and standardization, creating strong connection between the government, SBV, and banks However, it should avoid to make rush transformation or adjustment in short time to prevent shocking impacts on business operation of companies and institutions The government, together with SBV, should pay attention in developing new financial instruments in order to create well-diversified tools for managing banking business as well as credit risks A careful research in applying debts trading or credit derivatives as well as possible suitable sets of regulation under Vietnamese circumstance should be considerable The SBV needs to improve functions and performance of credit rating agencies, CRC, C&R and CIC Although the establishment of these organizations proves perception of the central bank in importance of domestic centralized standards for evaluating credit risks, in reality, they have not worked effectively and efficiently These organization need to speed up their process of building information database system Moreover, an official rating system must be established in order to provide assessment and estimate ratings for every companies and financial institutions Up-todateness, accuracy, selectiveness, and comprehensiveness are some important requirements for all three rating agencies Insurance funds for credit is advisable for SBV In this method, credit risks can be shared among banking systems, thus reducing losses caused by this type of unsystematic risks Besides of protection function, this fund can contribute greatly to capital resources for the whole economy SBV must cooperate with General Statistic Office (GSO) and Ministry of Finance (MOF) to accomplish development of an official system for accessing average data of each industrial sector It is crucial because in fact, Vietnam financial market needs a formal, standardized and trustworthy reference sources to access credit ratings of enterprises It is hard to find a meaningful benchmark for indicators to assess how well a company is doing, compared to the average level of industry in which it operates SBV needs to increase frequency in supervising performance and operations of banks Situation of bad debts, debts structure, quality of debts, punctuality of repayments, allowances setting up, charge-offs and recovery must be observed 72 carefully by SBV from aspects of both the bank itself and the whole banking system of the nation 73 CONCLUSION Having internship at Risk Management Department in BIDV – Hai Phong branch is a memorable practical experience for me I have chance to exercise theories of banking and financial management I have learnt, to approach realistic knowledge about what a business organization operate, and to have opportunity to participate in a real professional working environment Since credit is one of the main functions, credit management always plays a vital role in success of any bank and financial institution As one of two biggest banks operating in Vietnamese financial market, BIDV and its branch in Hai Phong have received many remarkable outcomes in various aspects during the period 2009-2011 Although the domestic economy was experiencing significant stagnation, influenced by global financial crisis, the bank did receive plenty of positive news in business performances, with stable records in profit earnings and credit activities Furthermore, 2009-2011 witnessed an exceptional performances of the branch in credit risk management Despite disadvantageous conditions was surrounding, Hai Phong branch still enabled to control their credit risks at minimum level, shown by very low nonperforming loans, positive loan structure, and favorite movements of recovery for charge-offs Those achievements demonstrated effectiveness and efficiency of credit risk management In fact, BIDV’s internal credit rating system proved itself strong reputation, enhancing a solid position of BIDV and its branch in Hai Phong in financial market of Vietnam APPENDIX A: THE MODEL Cs OF CREDIT ANALYSIS 74 Character Capacity - Cash Collateral - Condition - Control - Purpose of loan Customer’s past payment Experience of other lenders with this customer Customer’s track record in forecasting business or personal income Credit rating Presence of cosigners or guarantors of the proposed loan Identity of customer and guarantors Copies of Social Security cards, and other legal documents Description of history, legal structure, owners, nature of operations, products, and principal customers and suppliers for a business borrower Take-home pay for an individual; past earnings, dividends, and sales record for a business firm Adequacy of past and projected cash flows Availability of liquid reserves Turnover of payables, accounts receivable, and inventory Capital structure and leverage Expense controls Coverage ratios Recent performance of borrower’s stock and price-to-earnings ratio Management quality Recent accounting changes Ownership of assets Vulnerability of assets to obsolescence Liquidation value of assets Degree of specialization in assets Liens, encumbrances, and restrictions against property Leases and mortgages issued against property and equipment Insurance coverage Guarantees and warranties issued to others Lender’s relative position as creditor in placing a claim against borrower’s assets Probable future financing needs Customer’s current position in industry and expected market share Customer’s performance, compared to firms in same industry Competitive climate for customer’s product Sensitivity of customer and industry to business cycles and changes in technology Labor market conditions in customer’s industry or market area Impact of inflation on customer’s balance sheet and cash flow Long-run industry or job outlook Regulations, and political and environmental factors affecting the customer and/or his or her job, business, and industry Applicable laws and regulations regarding the character and quality of acceptable loans Adequate documentation for examiners who may review the loan Signed acknowledgements and correctly prepared loan documents Consistency of loan request with lender’s written loan policy Inputs from noncredit personnel on external factors affecting loan 75 repayment (Source: Bank Management & Financial Services) 76 APPENDIX B: Z-SCORE MODEL The original Z-score’s ingredients consist of five variables: X 1, X2, X3, X4 and X5, which stand for accounting ratios derived from financial statements and market price, as explained below The formula is as follows: Z = 1.2 X1 + 1.4 X2 + 3.3 X3 + 0.6 X4 + 0.999 X5      X1 = Working capital / Total assets X2 = Retained earnings / Total assets X3 = Earnings before interest and taxes / Total assets X4 = Market value of equity / Total liabilities X5 = Revenues / Total assets To assess any firm’s likelihood of bankruptcy, the result will be compared to the predetermined zones of discrimination  Z > 2.99  1.81 < Z < 2.99  Z < 1.81    ‘Safe’ zone ‘Grey’ zone ‘Distress’ zone Later, Altman designed alternative applicable formula for privately held companies (the Altman Z'-Score) and non-manufacturing companies (the Altman Z"Score) The formulas are found below with the same variables used For private firms: Z’= 0.717 X1 + 0.847 X2 + 3.107 X3 + 0.420 X4 + 0.998 X5  Z’ > 2.90  1.23 < Z’ < 2.90  Z’ < 1.23    For non-manufacturing firms:  Z” > 2.6  1 < Z” < 2.6  Z” < 1    ‘Safe’ zone ‘Grey’ zone ‘Distress’ zone Z” = 6.56 X1 + 3.26 X2 + 6.72 X3 + 1.05 X4 ‘Safe’ zone ‘Grey’ zone ‘Distress’ zone 77 78 REFERENCE Peter S Rose, Sylvia C Hudgins (2009) Bank Management & Financial Services (8th Edition) (pp 515-539), McGraw-Hill/Irwin, USA, New York Credit risk (n.d.) Retrieved March 4th 2012 from http://en.wikipedia.org/wiki/Credit_risk How Banks Measure Credit Risks? Retrieved March 4th 2012 from http://www.creditrisk-measurement.com/how-do-banks-measure-credit-risks.htm Lâm Minh Chánh (July 30th 2007) Chỉ số Z: Công Cụ Phát Hiện Nguy Cơ Phá Sản Xếp Hạng Định Mức Tín Dụng (bài 1) Retrieved March 13th 2012 from http://www.saga.vn/view.aspx?id=5493 Lê Tất Thành (November 11th 2011) Các Phương Pháp Xếp Hạng Tín Dụng Doanh Nghiệp Điển Hình Trên Thế Giới – Phần Retrieved March 5th 2012 from http://rating.com.vn/home/_/Cac-phuong-phap-xep-hang-tin-dung-doanh-nghiep-dienhinh-tren-the-gioi -Phan-1.17.482 Lê Tất Thành (November 11th 2011) Các Phương Pháp Xếp Hạng Tín Dụng Doanh Nghiệp Điển Hình Trên Thế Giới – Phần Retrieved March 5th 2012 from http://rating.com.vn/home/_/Cac-phuong-phap-xep-hang-tin-dung-doanh-nghiep-dienhinh-tren-the-gioi -Phan-2.17.568 Lê Tất Thành (October 5th 2010) Phương pháp tính điểm xếp hạng tín nhiệm Moody’s Retrieved March 5th 2012 from http://rating.com.vn/home/_/Phuong-phap-tinh-diem-xephang-tin-nhiem-cua-Moody's.17.863 Ngân hàng Đầu tư Phát triển Việt Nam chi nhánh Hài Phòng Retrieved March 6th 2012 from http://www.hoitudoanhnghiep.com/doanh-nghiep/ngan-hang-bao-hiem/ngan-hangdau-tu-va-phat-trien-viet-nam-chi-nhanh-hai-phong/3362.html Ngân hàng Đầu tư Phát triển Việt Nam (n.d.) Retrieved March 6th 2012 from http://vi.wikipedia.org/wiki/Ng%C3%A2n_h%C3%A0ng_%C4%90%E1%BA%A7u_t %C6%B0_v%C3%A0_Ph%C3%A1t_tri%E1%BB%83n_Vi%E1%BB%87t_Nam 10 Bank for Investment and Development of Vietnam (n.d.) Retrieved March 6th 2012 from http://en.wikipedia.org/wiki/Bank_for_Investment_and_Development_of_Vietnam#cite_n ote-Baolaodong-0 11 Báo cáo thường niên năm 2009 Retrieved March 6th 2012 from http://www.bidv.com.vn/Tin-tuc-su-kien/Bao-cao/Bao-cao-thuong-nien/B 225;o-c 225;othuong-ni 234;n-nam-2009.aspx 12 Báo cáo thường niên năm 2010 Retrieved March 6th 2012 from http://www.bidv.com.vn/Tin-tuc-su-kien/Bao-cao/Bao-cao-thuong-nien/B 225;o-c 225;othuong-ni 234;n-nam-2010.aspx 79 13 Báo cáo tài hợp kiểm tốn 2011 Retrieved March 6th 2012 from http://www.bidv.com.vn/Nha-dau-tu/Bao-cao-tai-chinh/Bao-cao-tai-chinh/B 225;o-c-225;o-t 224;i-ch 237;nh-hop-nhat-(3).aspx 14 Tập huấn cơng tác quản lý rủi ro tín dụng BIDV [PowerPoint slides] Retrieved March 13th 2012 from BIDV – Hai Phong branch database 15 Business operational results of the branch in 2010 and 20011 [Excel Worksheet] Retrieved March 13th 2012 from BIDV – Hai Phong branch database 16 Phụ lục II/TDDN: Lưu đồ [DOC format] Retrieved March 13th 2012 from BIDV – Hai Phong branch database 17 Phụ lục IY/TDDN: Danh mục hồ sơ tín dụng [DOC format] Retrieved March 13th 2012 from BIDV – Hai Phong branch database 18 Phụ lục V/TDDN: Hướng dẫn đánh giá chung khách hàng [DOC format] Retrieved March 13th 2012 from BIDV – Hai Phong branch database 19 Phụ lục VI/TDDN: Hướng dẫn thẩm định tài khách hàng [DOC format] Retrieved March 13th 2012 from BIDV – Hai Phong branch database 20 Law of Credit Institutions 2004 21 Law of Credit Institutions 2010 22 Decision no.4275/QD-VP dated August 25th 2008: Procedures for credit granting to enterprises 23 Decision no.493/2005/QD-NHNN dated April 22nd 2005: Rules on debt classification and loss reserve 24 Decision no.8598/QD-BNC dated October 20th 2006: Internal credit rating 25 Decision no.3979/QD-PC dated July 13th 2009: Transaction related to collaterals in credit 26 Decision no.3999/QD-QLTD1 dated July 14th 2009: Process, procedures & authority in credit granting to enterprises 27 Debt classification under internal credit rating system (Lao Dong) Retrieved March 8th 2012 from http://www.msgs.com.vn/en/front-end/index.asp? website_id=39&menu_id=600&parent_menu_id=437&article_id=14965&fuseaction=DIS PLAY_SINGLE_ARTICLE 28 Bidv applies internal credit ratings Retrieved March 8th 2012 from http://www.intellasia.net/news/articles/finance/111140704.shtml 29 BIDV Hải Phòng tăng trưởng 20% năm 2009 Retrieved March 8th 2012 from http://www.baomoi.com/BIDV-Hai-Phong-tang-truong-hon-20-nam2009/126/3897497.epi 30 Vì BIDV đầu minh bạch nợ xấu? Retrieved March 9th 2012 from http://vietstock.vn/PrintView.aspx?ArticleID=77870 31 Introduction of Bank for Investment and Development of Vietnam Retrieved March 8th 2012 from http://www.rice-festival.com/sponsorcompanydetail-16-Bank-for-Investmentand-Development-of-Vietnam.html 80 32 Nguyen Thi Hanh (2010) Minimizing the Credit Risk At Bank for Investment and Development of Vietnam – branch Thang Long 33 Nguyễn Thành Huyên (2008) Hoàn thiện hệ thống xếp hạng tín dụng Vietcombank [PDF document] Retrieved March 12th 2012 from http://lib.thanglong.edu.vn/uploads/files/1321843206.pdf ... Evaluating System and the Model of Cs of Credit Analysis .55 3.5 Performance Of Credit Risk Management In BIDV Branch 57 3.6 Evaluating Of Credit Risk Management In BIDV – Hai Phong Branch. .. evolvement of expanding into new market Banking service menu and increasing interference of other financial institution create confusion arising in differentiating between banks and other financial institutions... and branches of foreign banks In specific, there are state-owned banks, policy bank, 37 joint-stock banks, 53 fully-foreign-owned banks or branches of foreign banks, and joint-venture banks 2.1.2