LV Thạc sỹ_Improving deposit activities of Vietinbank branch in hai ba trung district

NATIONAL ECONOMICS UNIVERSITY ADVANCED EDUCATIONAL PROGRAM ***************************** Bachelor Thesis Improving deposit activities of Vietinbank’s branch in Hai Ba Trung district ACKNOWLEDGEMENT First of all, I wish to express my gratitude to Professor Pham Quang Trung - my mentor, who has helped me a lot during the process of my internship with his extensive knowledge and experiences I am also grateful to the staff members at Hai Ba Trung banking branch of Vietinbank, especially to Mr … - my internship guide, for your guidance and instructions Sincerely thanks the officers from Advanced Program for their facilitation Finally, a special thank to my family and friends for their love and support TABLE OF CONTENTS ABSTRACT .5 ABBREVIATIONS LIST OF TABLES LIST OF FIGURES CHAPTER 1: INTRODUCTION 1.1 Rationale .9 1.2 Research objectives 10 1.3 Research methodology 10 1.4 Research scope 11 CHAPTER 2: LITERATURE REVIEW .12 CHAPTER 3: THEORETICAL BACKGROUND .15 OF COMMERCIAL BANKS’ DEPOSIT ACTIVITIES 3.1 Overview of commercial banks 15 3.1.1 Definition of commercial banks 15 3.1.2 Functions of commercial banks in economy 16 3.1.3 Services of commercial banks .17 3.1.4 Types of commercial banks 18 3.1.5 Factors that affect the operation of commercial banks in Vietnam 19 3.2 Deposit activities and its role in the operation of commercial banks 20 3.2.1 The importance of deposit services .20 3.2.2 Common types of deposits 21 3.2.3 General characteristics of deposits 23 3.2.4 Pricing deposit services 25 CHAPTER IV: DEPOSIT ACTIVITIES OF 28 VIETINBANK’S BRANCH IN HAI BA TRUNG DISTRICT 4.1 Background of the branch 28 4.1.1 History of establishment and development 28 4.1.2 Organizational structure 30 4.1.3 Business activities 30 4.1.4 Recent business performance 34 4.2 Potential for the deposit services of Vietinbank’s branch 37 in Hai Ba Trung district 4.2.1 The conditions of macro-economy and banking system 37 4.2.2 The conditions of Vietinbank 39 4.2.3 The conditions of the branch in Hai Ba Trung district 40 4.3 Current performance of deposit services at Vieitnbank’s 46 branch in Hai Ba Trung district 4.3.1 Overall performance .46 4.3.2 Performance of different types of deposits 48 CHAPTER V: RECOMMEDATIONS AND SOLUTIONS 56 5.1 Improving deposits of different customer segmentations 56 5.2 Improving deposits denominated in different currencies 57 5.3 Improving deposits of different terms 57 5.4 Other recommendations and solutions 58 CONCLUSION 59 REFERENCES 63 APPENDIX A 64 APPENDIX B 65 ABSTRACT This thesis is the product of my internship at Hai Ba Trung branch of Vietinbank from to For more than weeks, I spent time and efforts conducting a research on the bank’s deposit activities I realized that deposit services play a particularly important role in the operation of the bank Commercial banks must secure effectiveness and efficiency in raising deposit in order to achieve strong business performance and stable operation Therefore, I chose deposit activities as the topic for my thesis of which the ultimate goal is to come up with recommendations and solutions to improve the deposit activities of the bank The thesis consists of five parts Chapter I gives readers an overview on the thesis by clarifying the rationale, research objectives, research methodology and research scope In chapter II - Literature Review - summarizes the important and useful key points of several preceding researches conducted on similar topics Chapter III examines the theories on deposit activities of commercial banks Chapter IV analyzes the potential for and reality of Vietinbank - Hai Ba Trung branch's deposit activities in details Chapter V comes up with recommendations and solutions to improve the bank's deposit services The key points of all these chapters are summarized in the conclusion in a sequential and logical order ABBREVIATIONS bil billion CD Certificate of Deposit Dept Department mil million No Number SBV State Bank of Vietnam LIST OF TABLES Table 3.1 Example of a bank attempting to raise new deposits 26 Table 4.1 Vietinbank – Hai Ba Trung district bank’s 34 total revenues, total expenses and profit from 2005 to 2011 Table 4.2 Annual percentage changes in the total revenues, 34 total expenses and profit of Vietinbank – Hai Ba Trung district bank from 2006 to 2011 Table 4.3 The educational level of employees at .44 Vietinbank’s branch in Hai Ba Trung district LIST OF FIGURES Figure 4.1 The official logo of Vietinbank 29 Figure 4.2 The organizational structure of Vietinbank .31 – Hai Ba Trung district bank Figure 4.3 Annual revenues of Vietinbank 35 – Hai Ba Trung district bank from 2005 to 2011 Figure 4.4 Annual expenses of Vietinbank 36 – Hai Ba Trung district bank from 2005 to 2011 Figure 4.5 Annual profit of Vietinbank 37 – Hai Ba Trung district bank from 2005 to 2011 Figure 4.6 The volume of total deposits at 46 the end of each year at Vietinbank – Hai Ba Trung district bank from 2005 to 2011 Figure 4.7 Annual changes in Vietinbank 47 – Hai Ba Trung district bank’s total deposit amount, measured in absolute values (billion VND) Figure 4.8 The volume of deposits provided by 49 corporate and individual customers of Vietinbank – Hai Ba Trung district bank from 2005 to 2011 Figure 4.9 The structure of Vietinbank – Hai Ba Trung .51 district bank’s deposit in 2005 and 2011, based on types of depositors Figure 4.10 The volume of VND-denominated 53 deposit and foreign currencies-denominated deposit from 2008 to 2011 of Vietinbank’s branch in Hai Ba Trung district Figure 4.11 The volume of sight deposit and .55 time deposit at Vietinbank’s branch in Hai Ba Trung district from 2008 to 2011 CHAPTER 1: INTRODUCTION 1.1 Rationale After decades of development, commercial banks in Vietnam nowadays have become more and more complex and diversified in terms of services they offer Nonetheless, despite these substantial changes in their services portfolio, they always have to stick with the all-time most basic banking service which lays the foundation for every business activity: Deposit services That deposit making is the most primitive and familiar business activity of commercial banks does not mean that it is easy to be conducted effectively and efficiently In Vietnam, there are factors that challenge banks to access to deposit sources, such as the harsh competition between banks and financial institutions, the control of SBV (State bank of Vietnam), the saving habit of citizens, to name a few Vietinbank, though considered one of the biggest commercial banks in Vietnam with widespread network of branches across the country, cannot avoid the influence of these factors either The foremost duty of each branch is to a good job in raising deposits, but without continuous improvements, it is not easy to be successful in tackling this basic task For such reason, it is important to improve the deposit activities of Vietinbank’s branches, including the one in Hai Ba Trung district, which was chosen as the specific target for this research as it possesses typical characteristics of a Vietinbank’s branch In particular, we have to come up with recommendations and solutions to increase the effectiveness and efficiency of the branch’s deposit activities To reach that aim, firstly we have to examine theories on commercial banks’ deposit activities and then analyze the reality of Vietinbank’s HBT branch’s deposit services, focusing on what can be enhanced to strengthen the branch’s deposit services performance The outcomes of the 10 research hopefully can be applied to ameliorate the deposit services of other branches and the centre as well After lots of deliberation based on the research target’s characteristics, the limitation of time, the availability of data sources and especially the importance of the research problem, I choose “Improving deposit activities of Vietinbank’s branch in Hai Ba Trung district” as my official thesis topic 1.2 Research objectives The thesis serves four objectives: • Reviewing widely accepted theories on deposit activities of commercial banks • Analyzing the potential for deposit services of Vietinbank’s Hai Ba Trung branch • Analyzing and evaluating the reality / performance of deposit services of the branch in recent years • Giving recommendations and solutions to improve the branch’s deposit activities 1.3 Research methodology Three methods are applied in this research: • Analyzing the secondary data on the performance of Vietinbank’s Hai Ba Trung branch Sources of these data include official reports and other materials about the operation and business performance in recent years of the branch Relevant ratios are calculated and evaluated based on these data Both quantitative and qualitative measures are employed • Interviewing some staff members of the branch Questions focus on matters revolving around deposit services, such as the frequency of deposit services transactions, the characteristics of depositors, the staff’s attitude towards the policies on deposit activities of the branch, etc • Direct observations at the branch’s workplace on random working days for about consecutive weeks, concentrating on daily transactions of deposit services 52 outweighed individual customers’ deposit amount to become the main source of the bank’s total deposits In fact, the proportion of corporate customers’ deposit over total deposits has risen quickly from 38.55% in 2005 to 75.38% in 2008 and then culminated in 2009 at 77.68% Since 2008, this proportion has never fallen below 71% Along with that, the proportion of individual customers’ deposit volume has slid down desperately from 61.45% in 2005 to 22.32% in 2009 In years following 2007, the deposit raised from individuals and households always just made up for about a quarter of total deposits 28.04% 38.55% 61.45% 71.96% Figure 4.9 The structure of Vietinbank – Hai Ba Trung district bank’s deposit in 2005 and 2011, based on types of depositors It is believable that in the upcoming years corporate customers will continue to outweigh individual customers in terms of the deposit amount they contribute and maintain their important role as the main source of deposits for the bank 4.3.2.2 Deposits denominated in different currencies Vietinbank’s branch in Hai Ba Trung district accepts both deposits denominated in VND and in foreign currencies such as USD, Euro, Japanese yen, etc The volumes 53 of each type in each year from 2008 to 2011 are shown in figure 4.10 on the next page For the purpose of comparison, the value of foreign currencies-denominated deposit in each year was converted into VND, based on the foreign exchange rate at the time the data were collected It is easy to see that VND-denominated deposit and foreign currenciesdenominated deposit move into two opposite directions over the last four years While the former generally rose visibly through time from about 2,310 billion VND in 2008 to nearly 6,400 billion VND in 2010 (and just dropped slightly in 2011), the latter tended to decrease gradually from the peak of more than 2,800 billion VND in 2008 to the bottom more than 1,500 billion VND in 2010 (and just grew by a small margin in 2011) This reflects the fact that the bank has been more effective in raising VNDdenominated deposits than foreign currencies-denominated deposit The difficulty in raising deposit denominated in foreign currencies can be attributed to the unfavorable policies on such activities which were enforced by SBV during this time, such as the limitation on foreign currencies-denominated deposit’s interest rate (which was lowered to no more than 3% per year and thus made deposits in foreign currencies less attractive to depositors), the two-percent increase in reserve requirement for such type of deposit, the forbiddance of buying and selling foreign currencies in the free market, etc Volume of deposits (billion VND) 54 Figure 4.10 The volume of VND-denominated deposit and foreign currencies-denominated deposit from 2008 to 2011 of Vietinbank’s branch in Hai Ba Trung district The increase in VND-denominated deposit and decrease in foreign currenciesdenominated deposit year after year led to a “shift” in the bank’s deposit structure In 2008, a majority of the bank’s total deposit fell in the category of foreign currenciesdenominated deposit, but after this the amount of deposit denominated in VND has grown up quickly to catch up with and finally surpass foreign currencies-denominated deposit’s volume since 2009 The gap between the amounts of the two types was even significantly widened in 2010 Therefore, we can see that over time the bank’s total deposit has shifted from an old structure with foreign currencies-denominated deposit making up for more than 50% of the total amount to a new structure substantially dominated by VND-denominated deposit 55 4.3.2.3 Deposits with different terms Deposits at the bank can also be classified as sight deposit which have no term and can be withdrawn at customers’ will at anytime and time deposit which have various and flexible specified terms from one week up to 60 months and cannot be withdrawn before the end of these terms unless a penalty is paid by the depositor as required by the bank The amounts of sight deposit and time deposit at the branch in each year from 2008 to 2011 are portrayed in figure 4.11 on the next page The general trend for both types is to increase gradually over time (although both of them just decreased slightly in 2011) Coincidentally, they moved in the same direction in every year (thus the two lines representing their amount in each year in the figure 4.11 are almost parallel and the gap between them did not seem to change along the two lines) The sight deposit had lowest amount in 2008 with 450 billion VND and highest amount in 2010 with 1,552 billion VND Similarly, the time deposit volume also reached the lowest level in 2008 with 4,718.394 billion VND and culminated in 2010 with about 6,338 billion VND It is notable that the volume of time deposit always significantly exceeded the volume of sight deposit over the last four years The difference between them always stayed at very high level, at least about 4,300 billion VND as in 2008 or even nearly 5,000 billion VND as in 2011 Therefore, time deposit has easily overwhelmed sight deposit to become the primary source of the bank’s total deposit In fact, while sight deposit has never reached 20% of the total deposit amount, time deposit has always contributed at least 80.33% (as in 2010) of the volume of total deposit Unless the bank finds an effective way to really improve raising sight deposit, the time deposit will still dominate the structure of total deposit with very high proportion and the gap between the two deposit types cannot be narrowed down in the future Volume of deposits (billion VND) 56 Figure 4.11 The volume of sight deposit and time deposit at Vietinbank’s branch in Hai Ba Trung district from 2008 to 2011 Through all the analyses above, we have seen that Vieitnbank’s branch in Hai Ba Trung district has strong overall performance in deposit services and this has been generally improved over time However, the specific performance of each deposit type or category was different from one another The bank seemed more effective in raising deposit from corporate customers, denominated in VND and of time deposit types than deposit from individual customers, denominated in foreign currencies and of sight deposit type, respectively 57 CHAPTER 5: RECOMMEDATIONS AND SOLUTIONS This chapter is dedicated fully to recommendations and solutions aiming at tackling the problems, limitations and disadvantages in Vietinbank – Hai Ba Trung district bank’s deposit services, which were discovered in chapter IV above as well as improving the effectiveness and efficiency of these services 5.1 Improving deposits of different customer segmentations As figured out in section 4.3.2.1, the bank has performed really well in raising deposits from corporate customers, focusing on the companies, factories, etc operating in the area of Hai Ba Trung district The amount of money these customers are providing to the bank each and every year in the form of deposits is enormous and stable This is a remarkable strength and an advantage that should be maintained and cultivated more The key point is to build up a firm long-term relationship with these institutional customers The bank can offer them additional services or special benefits and thus give them the sense of being appreciated Besides, once these customers enjoy lots of services and benefits from the bank especially the unique ones that are not provided by any other banking firms, the customers will be bound to the bank, become more dependent on the bank, hence it will be more difficult for them to shift to another bank or financial institution Aside from that, the bank must also attract more individual depositors and their money since the amount and proportion of deposit provided by individuals and households at the bank are still low compared to that of corporate customers One of the biggest challenges in achieving this goal is Vietnamese’ saving habit A lot of people just want to keep their money at home and are not used to lending their money to the bank in the form of deposit To overcome this difficulty, the bank should promote 58 its marketing activities, approaching potential individual customers, particularly those with high income However, since the improvement of marketing activities requires more spending, the bank must deliberate on the budget and detailed plan for marketing and make sure that the financial benefit brought about by enhancing marketing activities is more than enough to cover the additional cost, otherwise such measure will only result in loss for the bank 5.2 Improving deposits denominated in different currencies Section 4.3.2.2 pointed out that the bank is strong in raising VND-denominated deposit but has trouble in raising deposit denominated in foreign currencies Improving the performance of foreign currencies-denominated deposit is in fact one of the most challenging issue the bank must face, since it is heavily affected by external factors, especially the control of SBV on interest rate, foreign currencies transactions, etc which Vietinbank and its branches almost cannot interfere However, there is still a little chance for improvement if the bank somehow enhances and promotes related services once SBV’s regulations on such activities are loosened 5.3 Improving deposits of different terms According to section 4.3.3.3, time deposit accounts for an overwhelming majority of the bank’s deposit structure, while the amount of sight deposit just makes up for a small part of it The advantage of this structure is that it generally ensures stability and liquidity, because with a structure mainly composed of time deposits, the bank faces much less threat of unexpected money withdrawal at large amount from depositors, which can cause shortage of liquidity and other serious consequences Nonetheless, the cost of raising time deposit is higher than raising sight deposit, so if this structure is maintained for a long time it will be a cost burden for the bank Therefore, it will be better if the bank can approach to a more balanced deposit structure with higher proportion of sight deposit More than 90% of the total amount of sight deposit comes from demand deposit of corporate customers They deposit their 59 money into transaction accounts at the bank and make or receive payments via these accounts Hence, to raise more sight deposit, basically the bank has to develop various types of demand deposit accounts, satisfying customers’ request for transactions perfectly, making the transferring of money via transaction accounts as quick, convenient and least costly as possible for their customers In fact, since the accounts of some customers’ partners may be controlled by other banks, to achieve the targets above Vietinbank’s branch should go for technical synchronization with other banks’ transaction systems as well 5.4 Other recommendations and solutions • While still focusing on Hai Ba Trung district as the main market, the bank should try extending its market outside this area as well • More training on expertise, etiquette and courtesy should be given to the staff members in charge of deposit services, especially those who have direct contact with customers This is also a part of the bank's strategy on building strong customer relationship • The branch should also improve other services and business activities Though this may not have a direct influence on deposit services, the Halo effect generated from these improvements may be a favorable factor for speeding up deposit activities, contributing to the reputation of the bank's service catalogue as a whole 60 CONCLUSION With the topic of “Improving deposit activities of Vietinbank’s branch in Hai Ba Trung district”, this thesis has provided reviews on theoretical background of commercial banks and their deposit activities in chapter III, analysis and evaluation of the aforementioned bank’s deposit services performance in recent years in chapter IV, and finally several recommendations and solutions to enhance the bank’s effectiveness in deposit activities in chapter V The theoretical background on commercial banks starts with the definition, functions, services, categorization of commercial banks and factors that affect commercial banks’ operation The latest and most reliable definition of commercial banks is given in Article in Vietnam’s Law on credit institutions, dated 16/06/2010 In an economy, commercial banks serve three important functions: financial intermediation, medium of exchange creator and payment intermediation Today commercial banks provide an increasingly diversified service catalogue to various customers Commercial banks can be categorized based on different criteria: ownership, characteristics of operation and organizational structure Factors that affect commercial banks’ operation include Government’s policies, the development and diversification of financial services, the trend of market expansion, the rising competition against rivals, the demand for raising equity and the revolution in technology In commercial banks’ operation, deposit activities play an important role as they represent the ultimate source of profit and growth as well as provide a measure of the bank’s business success Common types of available deposits today are demand deposit, savings deposit and time deposit Common characteristics of deposits are that 61 they usually make up for a significant majority of commercial banks’ total liabilities, they must be paid back to depositors when depositors request withdrawal, they are subject to reserve requirement and they are influenced by various external and internal factors Three methods can be used in pricing deposit services: Cost plus profit pricing model, pricing based on marginal cost and pricing based on total customer relationship After going through theories about commercial banks’ deposit activities, the thesis continues will Vietinbank – Hai Ba Trung district bank’s background, the potential and current performance of the bank’s deposit activities Vietinbank’s branch in Hai Ba Trung district has a quite complicated history of establishment and development but basically they officially came into existence as Vietinbank’s only branch in the district since September st 1993 Since then, the bank has been developing each and every year, continuously improving total capital and diversifying business activities The bank has earned considerable profit since 2006, though the amount of profit fluctuates a lot from year to year The potential for deposit services of Vietinbank’s branch in Hai Ba Trung district come from the conditions of the macro-economy, of the banking system in Vietnam, of Vietinbank and of the branch itself In recent years, commercial banks’ endless race in raising deposit interest rates resulted in SBV’s interference to stop the race by setting up fixed interest rates for different types of deposits that banks must follow Despite all changes in the financial market during this period, Vietinbank still preserves its strengths in size, reputation and transaction services’ pioneering technology and these are comparative advantages that Vietinbank’s branches can inherit Additionally, the branch in Hai Ba Trung district also has its own favorable conditions, including the wide range of deposit services, the highly potential customer base, the knowledge and expertise of employees and the appliance of modern technology The biggest unfavorable condition that affects the potential for deposit 62 services of the bank is the intense competition with other banking firms in the same market of Hai Ba Trung district and Hanoi In fact, the branch has strong overall performance in deposit activities in recent years The branch’s total deposit amount almost always increases year after year, though the annual growth rate is not the same for every year (it fluctuates a lot) Over the last three years, the bank always nearly met the target on total amount of newly raised deposits set by Vietinbank’s centre Its performance of deposit activities is also strong in comparison with other branches of Vietinbank in Hanoi and with branches of other commercial banks in Hai Ba Trung district However, the specific performance of each type of deposit is very different from one another Whilst the deposit amount of corporate customers rockets over time, the amount of deposit provided by individual customers did not change very much Since 2008, the volume of corporate customers’ deposit has significantly surpassed that of individual customers’ deposit to become the main source of total deposit for the bank Besides, the bank’s deposit denominated in VND and deposit denominated in foreign currencies has moved into two opposite directions, with the VND-denominated one generally increases a lot while the foreign currencies-denominated one tends to decrease gradually through years, which caused a shift from the old structure with a majority is made of foreign currencies-denominated deposit to the current structure dominated by VND-denominated deposit There is also a difference in the performance of sight deposit and time deposit Although these two deposit types coincidentally have parallel moves over time, the gap between them is always very big since the volume of time deposit always far exceeds that of sight deposit, thus time deposit always makes up for an overwhelming proportion of the bank’s total deposit All these trends will probably go on in the upcoming years There are several recommendations and solutions that hopefully can help the bank improve its deposit services’ performance Firstly, the bank should attract more 63 individual deposits by investing more in marketing activities while still cultivating the deposit source of corporate customers Secondly, it should improve services and activities that are related to raising deposit denominated in foreign currencies Thirdly, it has to improve various types of sight deposit services, especially demand deposit Finally, the bank should extend its market, strengthen employees’ expertise and skills and enhance other services and activities 64 REFERENCES [1] Peter S Rose and Sylvia C Hudgins (2010), Bank Management & Financial Services, McGraw-Hill/Irwin Publishing House, United States of America [2] Nguyễn Quốc Ân (2008), Improving the competitiveness of Vietinbank’s branch in Hai Ba Trung district, National Economics University [3] Ordinance on State Bank of Vietnam (1990) [4] Law on Credit institutions of Vietnam (1997) [5] Government’s Decree No 49/2000/NĐ-CP on organization and operation of commercial banks (2000) [6] Law on Credit institutions of Vietnam (2010) [7] Circular No 02/2011/TT-NHNN on providing maximum interest rates for raising capital in VND (2011) [8] Circular No 30/2011/TT-NHNN on providing maximum interest rates applicable to deposit in VND of organizations, individuals at credit institutions and foreign banks’ branches (2011) [9] Reports on business performance of Vietinbank’s branch in Hai Ba Trung district from 2005 to 2011 [10] Union reports of Vietinbank’s branch in Hai Ba Trung district from 2009 to 2011 [11] Vietinbank’s official website, http://www.vietinbank.vn – accessed on 01/04/2012 [12] Dantri newspaper, the online newspaper of Central Study Promotion Society of Vietnam, http://dantri.com.vn/c76/s76-574216/chinh-thuc-giam-tran-lai-suat-huydong-xuong-13.htm - accessed on 12/03/2012 [13] http://vneconomy.vn/20110928112356935P0C6/ap-tran-lai-suat-moi-cho-tien-guikhong-ky-han-va-duoi-1-thang.htm - accessed on 12/03/2012 65 APPENDIX A: INCOME STATEMENT OF VIETINBANK’S BRANCH IN HAI BA TRUNG DISTRICT IN 2010 No I II III Items Total revenues Revenues from credit activities Revenues from foreign currencies exchange Revenues from capital adjustment Revenues from service fees Other revenues Internal regulatory revenues Total expenses Interest expense Expense of foreign currencies exchange Payment and fund expense Contribution to budget Salary expense Public affair management expense Asset purchase, maintenance and repair expense Provision for loan losses and deposit insurance expense Other expenses Income Value (million VND) 873,261 267,825 8,054 573,847 9,723 10,598 3,214 725,931 574,032 553 1,944 850 58,925 10,577 9,664 31,346 38,040 147,330 66 APPENDIX B: INCOME STATEMENT OF VIETINBANK’S BRANCH IN HAI BA TRUNG DISTRICT IN 2011 No I II III Items Total revenues Revenues from credit activities Revenues from foreign currencies exchange Revenues from capital adjustment Revenues from service fees Other revenues Internal regulatory revenues Total expenses Interest expense Expense of foreign currencies exchange Payment and fund expense Contribution to budget Salary expense Public affair management expense Asset purchase, maintenance and repair expense Provision for loan losses and deposit insurance expense Other expenses Income Value (million VND) 1,546,265 333,487 5,386 1,143,434 14,797 44,740 6,319 1,370,427 1,231,525 25 2,770 650 64,772 14,620 11,426 38,919 5,719 175,838 ... reorganizing the institutional system of Vietinbank’s branches in Hanoi following the two-level banking model, terminating the province level of banking branches, the two branches of Vietinbank in. .. from 2008 to 2011 of Vietinbank’s branch in Hai Ba Trung district Figure 4.11 The volume of sight deposit and .55 time deposit at Vietinbank’s branch in Hai Ba Trung district from 2008... structure of State Bank of Vietnam into a two-level structure, SBV Hanoi’s banking branch and economic banking branch in Hai Ba Trung district were transformed into Vietinbank’s branches in areas