LV Thạc sỹ_Improve the credit situation in BIDV hai ba trung branch

BACHELOR’S THESIS NATIONAL ECONOMICS UNIVERSITY ADVANCED EDUCATIONAL PROGRAM ***************************** BACHELOR’S THESIS Topic: “Improve the credit situation in Bank for Investment and Development of Vietnam (BIDV) Hai Ba Trung Branch” BACHELOR’S THESIS ACKNOWLEDGEMENT As a final-year student, I consider the internship progress as one of the most important period which provides me opportunities to apply my knowledge in the real working environment I want to give special thanks to my supervisor, Assoc.Prof.Dr …, for supervising and evaluating the process of completing this report I am much indeed appreciated My grateful thanks also go to my internship guide, Ms…, credit official at BIDV Hai Ba Trung, who directly guided me during the internship process and helped me better understand the branch’s structure and business activities Great deals appreciated go to the contribution of all officials and employees of BIDV Hai Ba Trung for providing me favorable conditions to complete my internship program, enjoy in a professional working environment of a financial institution, and implement my knowledge in reality Lastly, I would like to thank my group’s friends By no means can I finish my report without your comments and ideas contribution BACHELOR’S THESIS TABLE OF CONTENTS ACKNOWLEDGEMENT TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES CHAPTER I: INTRODUCTION 10 1.1 Rationale .10 1.2 Research Question .11 1.3 Research Objectives .11 1.4 Research Method 11 1.5 Research Scope .11 CHAPTER II: THEORITICAL BACKGROUND OF COMMERCIAL BANK’S CREDIT ACTIVITIES 12 2.1 Commercial Banks in Economy 12 2.1.1 The concept of commercial bank 12 2.1.2 Commercial banks’ business and services 12 2.1.2.1 Capital mobilization 12 2.1.2.2 Capital using and lending the economy 14 2.1.2.3 Banking services business 17 2.2 The Overview of Credit and Its Role in the Economy 17 2.2.1 The overview of credit 2.2.1.1 The concept of credit .17 2.2.1.2 The role of credit .18 2.2.1.3 Forms of credit 19 2.2.2 Commercial bank’s credit 20 2.2.2.1 The concept of commercial bank’s credit 20 2.2.2.2 Types of commercial bank’s credit 20 2.2.2.3 Lending methods .20 2.2.2.4 The role of bank credit in the economy 21 2.3 Indicators to Evaluate the Credit Situation of Commercial Banks 22 2.3.1 Capital general analysis .22 2.3.2 Analysis of capital mobilization 23 2.3.3 Analysis of borrowed capital .23 BACHELOR’S THESIS 2.3.4 2.3.5 2.3.6 Analysis of the bank's equity .23 The indicators to analyze the capital using 23 The indicators to assess the effectiveness of credit 24 CHAPTER III: INTRODUCTION TO BIDV HAI BA TRUNG AND ITS BUSINESS ACTIVITIES RESULTS FROM 2009 TO 2011 .25 3.1 An Overview of BIDV System 25 3.2 The Process of Establishment and Development of BIDV Hai Ba Trung 28 3.2.1 The circumstance and purpose of establishment 28 3.2.2 The development of transactions network and savings funds .29 3.3 Organizational Structure of BIDV Hai Ba Trung 29 3.3.1 The organizational structure of BIDV Hai Ba Trung 29 3.3.2 Functions of the departments in the bank 31 3.4 Business Activities Results of BIDV Hai Ba Trung from 2009 to 2011 34 3.4.1 Revenues evaluation .35 3.4.2 Expense evaluation .36 3.4.3 Profit evaluation 37 CHAPTER IV: CREDIT SITUATION IN BIDV HAI BA TRUNG FROM 2009 TO 2011 38 4.1 Provisions for Loans to Customer of BIDV Hai Ba Trung 38 4.2 Analysis of Credit Activities in BIDV Hai Ba Trung from 2009 to 2011 40 4.2.1 Capital mobilization .40 4.2.1.1 Capital mobilization results from 2009 to 2011 40 4.2.1.2 Capital mobilization analysis through indicators 44 4.2.2 Capital using – lending the economy 48 4.2.2.1 Capital using results from 2009 to 2011 .48 BACHELOR’S THESIS 4.2.2.2 Credit evaluation bases on terms 49 4.2.2.3 Capital mobilization analysis through indicators 55 4.3 Evaluation of Credit Situation in BIDV Hai Ba Trung from 2009 to 2011 59 4.3.1 Advantages 59 4.3.2 Limitations 60 4.3.3 The causes 62 CHAPTER V: SOLUTIONS TO IMPROVE THE CREDIT SITUATION IN BIDV HAI BA TRUNG 67 5.1 Orientation of Development and Some Important Indicators of BIDV Hai Ba Trung in 2012 67 5.1.1 Development orientation of BIDV Vietnam 67 5.1.2 Some basic growth indicators of BIDV Hai Ba Trung up to 2011 .68 5.2 Solutions to Improve the Credit Situation in BIDV Hai Ba Trung 70 5.2.1 Solutions at the macro level 70 5.2.2 Solutions at the micro level CONCLUSION REFERENCE APPENDIX BACHELOR’S THESIS LIST OF TABLES Table 3.1: Business activities results of BIDV Hai Ba Trung in 2009 – 2011 25 Table 3.2: Comparing business activities results in 2009 – 2011 .26 Table 4.1: Capital mobilization in 2009 – 2011 31 Table 4.2: Proportion of each method’s capital mobilized in total capital mobilized in 2009 - 2011 31 Table 4.3: Total mobilized capital/Total capital ratio in 2009 – 2011 36 Table 4.4: Term deposits/Total mobilized capital ratio in 2009 – 2011 36 Table 4.5: Medium-term and long-term mobilized capital/Total mobilized capital BACHELOR’S THESIS ratio in 2009 – 2011 37 Table 4.6: Capital using results of BIDV Hai Ba Trung in 2009 – 2011 39 Table 4.7: The loans revenue classify by terms from 2009 to 2011 (million VND) 41 Table 4.8: Debt recovery situation bases on terms in 2009-2011 (million VND) .43 Table 4.9: Total outstanding loans situation bases on terms of BIDV Hai Ba Trung in 2009-2011 (million VND) 44 Table 4.10: Overdue debts situation bases on terms of BIDV Hai Ba Trung in 2009-2011 (million VND) 45 Table 4.11: Total outstanding loans/Total mobilized capital ratio in 2009 – 2011 46 Table 4.12: Overdue debts/Total loans ratio in 2009 – 2011 47 Table 4.13: Credit turnover in 2009 – 2011 48 Table 4.14: Debt recovery coefficient in BIDV Hai Ba Trung from 2009 – 2011 49 Table 5.1: Financial Plan of BIDV Hai Ba Trung in 2012 60 BACHELOR’S THESIS LIST OF DIAGRAMS Diagram 3.1: Business activities results of BIDV Hai Ba Trung in 2009 – 2011 28 Diagram 4.1: Methods of capital mobilization growth in 2009 – 2011 34 Diagram 4.2: Proportion of each method’s capital mobilized in total capital mobilized in 2011 Diagram 4.3: Medium-term and long-term mobilized capital/Total mobilized capital ratio on 2009 – 2011 Diagram 4.4: Overdue debts situation bases on terms in 2009-2011 (million VND) BACHELOR’S THESIS Diagram 4.5: Bad debts/Total loans ratio in 2009 – 2011 48 CHAPTER I: INTRODUCTION 1.1 Rationale In the integration process, our country entered a period of industrialization and modernization All components are using their best investment and promotion of their resources to create sustainable development Commercial banks are not an exception of that trend Once the economy develops, the role of commercial banks become increasingly important, and it functions as s blood flow of the economy shows clearly Commercial banks are developing internal resources as well as taking advantage of the opportunities to best meet customer needs, generate profits for themselves In addition to facilitating of modern equipments and convenient transaction’s locations, the banks have to enhance the level of staff as well as the quality of products and services BACHELOR’S THESIS 10 The Bank for Investment and Development of Vietnam was established when the country was in difficult situation With over 50 years of operation and development, the bank was granted its trademark in the U.S, received the Vietnam Gold Star Award for strong brand, and many annual awards of the government, financial institutions in domestic and abroad Bank for Investment and Development of Vietnam has become the leading bank, has been known by local community and friends internationally and recognized as one of the largest banks in Vietnam Hai Ba Trung Branch is in the branch system of Bank for Investment and Development of Vietnam Over the years, the branch always developed its market share and maintained its growth in lending to the economic sectors in the area of Hanoi Being an internee of Bank for Investment and Development of Vietnam – Hai Ba Trung branch from March to May 2012, I had an opportunity to further research on the credit situation of the branch, regulations as well as the operation in recent years As a result, I decide to choose the topic “Improve the credit situation in Bank for Investment and Development of Vietnam (BIDV) – Hai Ba Trung Branch” for my internship report to show current situation and propose solutions to make the credit situation in the branch better 1.2 • • • Research Question What is the situation of credit in BIDV Hai Ba Trung branch from 2009 to 2011? What are the existing limitations in credit situation of BIDV Hai Ba Trung branch? What are the solutions to improve the credit situation in BIDV Hai Ba Trung branch? 1.3 • • 1.4 Research Objectives Analyze and evaluate the credit situation in BIDV Hai Ba Trung branch Propose some solutions to improve the credit situation in the branch Research Method In progressing the report, I used the following methods: a Data collection method: - Collect the documents that are directly related to analysis of credit situation of the • • branch in 2009 – 2011 period: Balance sheets Income statements BACHELOR’S THESIS 65 savings, life insurance, investment activities in real estate, stocks, bonds on financial markets • Internal resources of commercial banks themselves was not high, combined with small-scale capital and limited human resources, the low technological progress compared to other countries in the region Banking system is low quality and monotonous This is the biggest challenge for commercial banks in Vietnam That banking technology and services were modernized still not meet the requirements Banking system is monotonous, low quality, not driven by customer demand and heavy on traditional banking services Banks raise capital mainly in the form of deposits accounted for 94% total mobilized capital There is no segment of the product to raise capital, products and services for each individual customer groups A good marketing policy have to provide customer management strategy, including the implementation of market segmentation according to criteria such as geographic, demographic factors, psychological factors, routine behavior’s elements, etc Not every customer has the same needs, as well as brings the same profit for the bank It requires the segmentation to have sufficient customer services Meanwhile, the products now that the commercial banks and credit institutions provide the market are mass estimated for all customers, without any discrimination to each target group • The inability of diversify the types of banking services has led commercial banks in Vietnam mainly base on interest rate tool to compete and to attract customers However, this tool is effective only at certain limits Competitive pressure has forced banks almost simultaneously announced mobilized interest rates Interest rates hit close to profitable limit, the banks’ secure ability and affecting economic growth • The commercial banks in the country now hold nearly 90% market share of deposits, of which the state-owned commercial banks accounted for 70% Foreign banks account for less than 10% market share • However, this is not the advantage in the process of integration and openness to foreign banks to operate; it is just the inevitable result of the protection during the past for domestic commercial banks, especially the state-owned commercial banks than foreign banks on customers, the number and type of currency is allowed to mobilize and network operations BACHELOR’S THESIS 66 CHAPTER V: SOLUTIONS TO IMPROVE THE CREDIT SITUATION IN BIDV HAI BA TRUNG 5.1 Orientation of Development and Some Important Indicators of BIDV Hai Ba Trung in 2012 5.1.1 Orientation of development of BIDV Vietnam BIDV's strategy in 2011-2015 and vision to 2020 is striving to become one in twenty modern bank that have high quality, efficiency and reputation in Southeast Asia BACHELOR’S THESIS 67 in 2020 In which, BIDV focuses on 03 strategy: Complete the professional and effective organization structure; the business processes, governance regulations, devolution and coordination between units have direction to products and customers according to the best international practice Develop a high-quality human resource based on the use and development experts domestic and international as a core force for stable and sustainable development Enhance the capacity of operators, technology applications in banking activities to generate breakthrough and release of labor, increase the spread of science and technology to all business activities of BIDV In the period 2011-2015 BIDV will focus in completing ten priority objectives as follows: - Develop and improve organizational and management structure, improve operating capacity at all levels of BIDV, create a solid foundation to grow into the leading financial corporation in Vietnam - Focus on a comprehensive restructuring of the business to improve effectiveness and maintain quality; proactive in risk management and sustainable growth; - Maintain and develop the BIDV’s position and influence on financial markets, pioneering efforts to effectively implement national monetary policy; - Improve the capacity in risk management; and apply and manage according to best practices that in consistent with business situation in Vietnam; - Develop retail banking activities, hold a large share of outstanding loans, raise capital and retail services; - Strengthen the capacity of using applications and technology in business activities, create breakthroughs to increase efficiency, labor productivity - Develop the high quality human resources, professional force, improve labor productivity; - Strive to become the best credibility ratings bank in Vietnam by the international credit rating organization; - Restructure activities and improve the business performance of its subsidiaries, associated companies, restructuring the portfolio to focus on core business areas; - Protect, maintain and promote the core values, building corporate culture and develop BIDV brand BACHELOR’S THESIS 68 5.1.2 Some basic growth indicators of BIDV Hai Ba Trung in 2012 Over the past years, BIDV Hai Ba Trung has archived significant result which is a pretty solid foundation for the next step All officers and employees of the branch upheld the spirit of responsibility, and always maintained the unity in order to develop their branch Based on the socio-economic development in the area, combined with business results and development capabilities in 2012, BIDV Hai Ba Trung has orientations for development as follows: 5.1.2.1 In Qualify - Continue to raise capital to strengthen internal resources and competitiveness Total capital is expected to reach 4200 billion VND - Apply regularly new and attractive methods of mobilization to attract more idle funds in the general population, strive to reach local mobilized capital of 3300 billion - Pay attention to credit activities and credit quality, restrain the rate of bad debts at less than 3% of total loans Total loans and investment is estimated at 3200 billion, with bad debts contributing 73.8 billion - Strengthen methods to prevent risks - Save costs, invest, and increase revenues Net profit before taxes in 2012 was estimated at 35 billion Table 5.1 : Financial Plan of BIDV Hai Ba Trung in 2012 Category Measurement Target % growth compared with 2011 Total assets Billion VND 4400 20% Statutory capital Billion VND 150 – 170 27 – 44% Total mobilized capital Billion VND 3400 20% Total loans and investment Billion VND 3200 20% Net profit before taxes Billion VND 35 11% Some Financial Ratios BACHELOR’S THESIS ROE 16 – 18% ROA 1.2% CAR ≥ 9% Bad debts < 3% 69 (Source: Accouting Office of BIDV Hai Ba Trung) 5.1.2.2 On the calculation To achieve these results in 2011 as planned, the Bank should implement the following methods: - Continue to strengthen the management, focus on institutional development, enhance executing capacity, control risks, effectively manage the liabilities, ensure stable development for the branch - Focus all efforts to find new customers to increase their loans on the basis of safety and effectiveness, focus is lending to small and medium business customers, and consumer lending - Diversify all forms of mobilization that are consistent with customer psychology and practices in order to best meet customer needs - Create spacious and modern facilities - Expand business network to boost capital mobilization and products retails - Promote banking services such as buying and selling gold, convenient foreign currency trading for customers to travel, to take medical treatment, to study abroad - Apply mechanism of interest rates, mobilization and service fee for each customer group to attract more customers - Step up the handling of bad debts, limit the arising of new bad debts, concentrate in recovery of debts with risks being dealt - Strengthen marketing, advertising, distribute to specific departments of the branch - Put the emphasis on staff training to improve professional skills for staff, development the capacity for officers to nominate to managing work and being the inheritor in the future BACHELOR’S THESIS 70 5.2 Solutions to Improve the Credit Situation in BIDV Hai Ba Trung 5.2.1 Solutions at the macro level 5.2.1.1 For the Government - Need to build a stable legal environment, creating a legal framework for enterprises of all economic sectors including commercial banks to business healthly, equally, compete and develop in the framework of law; - Continue to improve the legal system to create a uniform legal environment, ensure the safety for all economic entities operating in the finance and banking sector in accordance with international standards; the legal documents needed to avoid overlapping consensus; 5.2.1.2 For the State Bank of Vietnam - The State Bank needs to review, edit promulgate legal documents to promptly remove obstacles and to create a healthy legal environment for commercial banks, create favorable conditions for commercial banks in business and reduce credit risks - Continue to promote restructuring of the banking system under government schemes that have been approved; - Modernize banking technology oriented integration and consistent with international standards, create more benefits to customer, improve service quality and competitiveness, innovate to meet the requirements of economic international integration process - Improve efficiency of the inspection and control of the State Bank in activities of commercial banks, especially credit activities, to ensure the commercial bank system to maintain healthy, stability and effectively business operations, with the purpose of protecting depositors and prevent the economy from shocks and crises caused by the commercial bank system; prevent and treat promptly negative behavior causing loss and waste in the use of credit capital for investment; - Further promote the role of credit information center (CIC), improve the quality of credit information, especially in the competition and international integration today BACHELOR’S THESIS 71 5.2.2 Solution at the micro level 5.2.2.1 For BIDV Hai Ba Trung a In general: Modernize banking technology and payment systems For capital mobilization quality of commercial banks to meet the international requirements and standards, requires the technology is constantly improving, modern and upgraded to become a supporting tool for bank’s staff Choosing the right technology to apply in management and business activities of credit institutions are critical to the development of banking services, increasing the size of mobilized capital, deciding investment effectiveness - Modernize banking technology and payment systems linked to the innovation in transacting style of employees, create respect for the bank's depositors, develop ebanking services - In the area of the card, most banks still use magnetic stripe technology with weak security, while the world have switched to chip card technology According to EMV standards of the international card organizations, from 2006, if the member banks in the Asia-Pacific region not move to chip card technology will be subject to an annual penalty of $50,000 So, the banks should soon upgrade existing card technology, put chip cards into use In the expansion of ATM networks, banks should consider the investment in installing new generation of ATMs, allowing recharge through the machine, avoid backward when the foreign banks involved - To create a high trust level with customers: Trust created by internal image of the commercial bank, which is the quantity and quality of products and services provided, qualifications and communication skills of the team staff, technical equipment and technology, equity and financial capabilities, especially effective and safe deposits, loans, etc and external image of banks, such as location, headquarters, logo, it is the intangible assets of commercial banks - To make the difference of the bank: Activities of commercial banks also have to create these characteristics - its image, what the bank owns but other not Marketing activities of commercial banks have to make a difference in the image of the bank That is the difference in product and service suppliers to the market, interest rates, BACHELOR’S THESIS 72 distributing channel; promotional activities - communication - To renew transacting style: Renovation in communication style, enhancing business culture is an urgent demand for officers and employees of commercial banks in order to keep up with the process of international integration Particularly, friendly, careful, thoughtful, and open style build trust in customers to send money b With capital mobilization Foster marketing activities - Promote marketing activities such as marketing, advertising, promotion in capital mobilization, create transparency information, publish information widely for people to actively choose the form of deposit with different interest rates and terms For example, market to customers in dynamic form such as integrating into the service of real estate for sale, mobilizing capital in gold, payment remittances, money transferring, issuance of debentures and bonds, agency of securities, etc These promotions accompanied must be diversity such as progressive interest rates, immediately-paid interest rates; prize bonds winning motorcycles, cars, refrigerators, washing machines, televisions, so on; gift when making deposits in such as raincoats, helmets, watches, desk fan, etc - Foster communication, advertising extensively about banking services, forms and policies of capital mobilization so that numerous people know about the bank’s services In some transaction offices, many customers are using deposit-attract products but not know all of that product utility Thus, the bank should diversify leaflets, brochures available at the outside counters for customers to read - Develop of customer service department, give customers the feeling of being respect every time This department function is to guide customers disclosing into first transactions, answer customer questions, advice, introduce of bank’s products to customers, build a culture of transactions for each commercial bank That culture is reflected through the style, civilized and courteous attitude of retailers, a private outfit, featuring each bank - Publish financial information to people to access, capture in order to attract relationships with banks and limit the risks of information Diversify deposit products, forms of mobilization - With saving deposits: Create an active and flexible options for customers, such as: depositing once, but the original flexible interest rates remain high; paying by BACHELOR’S THESIS 73 installment, but withdraw at maturity with attractive interest rates, multi-purpose savings account with term of months, months, 12 months, allowing the flexible original withdrawal; savings associated with life insurance; making deposits combined with pay-by-installment buying car program - With mobilization methods: Issue international bonds for foreign loans to finance feasible long-term investment projects of the business customer; adjust the medium and long term deposits interest rates Focus on exploiting demand deposits These funds have low costs due to lower interest rates, but is very unstable, adversely affect the branch’s capital planning In the future, the branch should continue to appreciate and have policies for development of demand deposits: - Firstly, promote cooperation with the Tax Department, the State Treasury, Electricity Company, Water Supply Company of non-cash solution with some objects in budget collection, payment of electricity, water, consider this a strategic long-term capital growth with low-cost - Secondly, specially pay attention to manufacturers of export products, have a good policy for these manufacturers to open accounts and make payments, loans at the branch, to attract foreign demand deposits from them Develop mobilization network The branch should look to expand its network through the establishment of transaction offices and savings funds in densely populated locations in Hanoi c With capital using Maintain and develop lending traditional customers - The branch should continue to implement customer policies, enhace caring, marketing efforts to maintain and develop relations, promote effective projects or large loan schemes from these customers - Strengthen local currency loans (VND) in the conditions of limited foreign mobilized capital Diversify the types of loans The big commercial banks now perform a variety of forms of creditsuch as short-term loans, medium-term loans, long-term loans, guarantees, etc In order to expand credit activities an effective way, besides develop and implement proper credit BACHELOR’S THESIS 74 policy, banks must continually diversify the forms of credit in accordance with customer demand Currently, BIDV Hai Ba Trung’s credit activities are primarily in the form of short-term loans, long-term lending through investment and guarantee To operate an effective credit activity, there is a requirement that the branch need to consider diversifying the forms of loans, such as loan through the discount commercial bills, vouchers under the L/C, overdraft for customers who use payroll service through ATM cards, etc The branch should research, design package product, combinie traditional forms of loans with additional services, in accordance with each group of customers such as derivatives in foreign exchange for customers engaged in import and export, interest rate swaps with long-term projects, develop factoring services Credit growth to ensure quality, safety, effectiveness and sustainability - Regularly analyse, evaluate, select, score credit; rank, identify potential customers, strategic customers who have the healthy financial capacity, have highly effective production and business; have high confidence in the credit and payment relationship for establishing and maintaining credit relationship Conversely, customers who have weak financial condition, ineffective business activities, large debts, and unable to repay principal and interest (without regard to economic sectors), which are the customers cause losses, risks, damages to the bank, the bank should, by all measures, rapidly withdraw outstanding loans and terminate the credit relationships - Strengthen inspection befir, during and after lending, tightly control the process of using loans of customer in order that the loans are used for proper purposes, have adequate supplies of goods, sales of products that belong to loans must pay the debt fully, actively collect debts (principal and interest) for each term according to contract, not allow the incurrence of new overdue debts Expand the lending to non-state economic sectors To expand lending to non-state economic sectors, contributing to credit growth, improve the efficiency of business operations at the branch, the branch need to: - Create favorable conditions (the paperwork, the time limit and credit limit) so that the non-state economic units will easily approch at the branch credit while ensuring credit rules application The branches should consider interest rate, fees apply to these businesses are highly competitive compared to other banks in the area - Valuation of secured assets for loans should be considered to close to reality, BACHELOR’S THESIS 75 regard to the risk factors can occur, ensure the legality and validity of the security property Security asset now, especially the land use right, often to be reviewed and evaluated on the basis of reference prices of the State, it is often much lower than the actual price in trading Enhance the assessment and classification of customers Assessment and classification of customers is one of the important work to improve the efficiency of lending activity The evaluation and classification of customers should be implement in a systematic way, as the basis for banks to capture more information about its customers, through which, implement the work of screening customers, facilitate the expansion of customer care as well as minimize credit risk of the branch Enhance the inspection and control Strengthen and improve the quality of the inspection, internal control of internal control office is necessary requirement to improve the effectiveness of operating in general and credit activities in particular at the branch Through the internal control and inspection, the bank can detect and timely correct the errors, on the other hand, remind and encourage loan officers to strictly implement the regulations and the industry processes, thus helping to improve the quality of credit operations at the branch Improve the quality of officers and employees Improving the quality of human resources is an issue that attract many attention of enterprises in general and of BIDV Hai Ba Trung in particular To develop the human resources for further improvement, the branch should implement the following measures: - Regularly send officers and employees to short training courses to update new knowledge, new regulations in the sector as well as activities of BIDV Vietnam - The branch should organize seminars that the officers and employees can exchange experience topic by topic to raise the level of loan officers; Or organize extra classes for officers and employees such as classes in law, accounting, corporate financial analysis and investment projects analysis - Encourage staff enjoy classes to further enhance their knowledge, expertise complement daily service such as business accounting, foreign languages, computer science, etc through the tuition fees support; put the seft-study criterion as the targets BACHELOR’S THESIS 76 for consideration of emulation titles - Each year, the branch should hold professional test, thereby motivating officers and employees to constantly study, improve their knowledge - Have encouragement for credit officers who work well in the assigned tasks, have healthy credit growth, and rarely arise overdue debts Quarterly Customer relations manager should analyze and classify loan officers in order, recommend Salary Council to raise wages for qualified officers, which will create competition atmosphere in each of the credit officers - The branch should consider to have the staffing in the department/offices accordingly on the basis of professional qualifications, aspirations of officers and employees to use the right people, especially the credit officers because these are the force to directly create profit for the branch./ BACHELOR’S THESIS 77 CONCLUSION Vietnamese economy is on the fast pace of development, including the contribution of the banking sector, especially the commercial banks Bank for Investment and Development of Vietnam, Hai Ba Trung branch, from the establishment, has made significant achievements, promote the reputation, gradually improve, continue to develop towards becoming the leading retail bank To accomplish business objectives, both for production and for ensuring that business is profitable, in recent years the branch has actively attracted idle capital in the population to meet the needs of the individual and business loans in the province Capital mobilization methods are flexibly applied and the capital has constantly increased with the variety of mobilizing methods The bank is considered quite effective in activities, actually create customer trust In addition, the branch also focused on capital using – lending the economy when improving making loans, debt recovery, timely handling of overdue loans The development has expressed through the continuously increased figures Although the growth rate in 2011 was lower than that of 2010, and the overdue debts still BACHELOR’S THESIS 78 followed an upward trend, the achieved results of BIDV Hai Ba Trung are significant Those results was due to the contribution of all staff in the bank, a united, responsible and determinative collective that can create synergy to complete assigned work Vietnam has joined the WTO, there are more new opportunities and challenges Therefore, BIDV Hai Ba Trung should make use of available resources, search for and promote new opportunities to strengthen its position in customer, be confident to step into the world economic integration REFERENCES Vietnamese: Phan Thị Thu Hà (2007) Ngân hàng thương mại Nhà xuất Đại học Kinh tế quốc dân, Hà Nội Nguyễn Minh Kiều (2005) Nghiệp vụ ngân hàng NXB Tài Nguyễn Thị Cúc (2008) Giáo trình tín dụng ngân hàng NXB Thống kê English: Peter S Rose (Fifth edition) Commercial bank Managerment MacGrawHill Irwin Website: - Overview of Bank for Investment and Development of Vietnam Address: http://www.bidv.com.vn/Gioithieu.aspx BACHELOR’S THESIS - Commercial bank Address: http://en.wikipedia.org/wiki/Commercial_bank - Credit (finance) Address: http://en.wikipedia.org/wiki/Credit_(finance) Balance sheets, income statements, and other credit documents of BIDV Hai Ba Trung in 2009-2011 79 ... the situation of credit in BIDV Hai Ba Trung branch from 2009 to 2011? What are the existing limitations in credit situation of BIDV Hai Ba Trung branch? What are the solutions to improve the credit. .. expanding the network in operation of BIDV Hai Ba Trung branch in particular and the whole BIDV system in general, BIDV Hai Ba Trung has continuously developed the transaction system, increasing in. .. credit situation in BIDV Hai Ba Trung branch? 1.3 • • 1.4 Research Objectives Analyze and evaluate the credit situation in BIDV Hai Ba Trung branch Propose some solutions to improve the credit situation