LV Thạc sỹ_Small and medium enterprises lending in Sacombank – thang long branch

Small and Medium Enterprises Lending in Sacombank – Thang Long Branch ACKNOWLEDGEMENTS This thesis could not have been completed without the help, encouragement and support from a number of people who all deserve my sincerest gratitude and appreciation First of all, I would like to thank Ph.D …, my supervisor I’m indebted to her inspiration, scholarly supervision and intellectual support throughout the course of writing this graduation thesis Her continual encouragement, careful reading, critical comments and patient guidance made my work more enjoyable and easier Special words of thank also go to all my informants for their willling participation in the study I greatly appreciate their generosity with their time and efforts in filling in the questionnaire Without them this thesis could not have been possible Finally, my deepest gratitude and appreciation go to my family, my friends, my classmates and my colleagues at Sacombank – Thang Long branch Their love, support and constant encouragement gave me a great deal of strength and determination that help me during the stressful time of writing this thesis TABLE OF CONTENTS Small and Medium Enterprises Lending in Sacombank – Thang Long Branch ACKNOWLEDGEMENTS TABLE OF CONTENTS .2 ABBREIVIATIONS LIST OF TABLE LIST OF CHARTS EXECTUTIVE SUMMARY INTRODUCTION Rationale Research objective 10 Research methodology 10 Scope of research 11 Thesis structure .11 Chapter 1- Theoretical Background 12 1.1 Fundamental problems of SMEs 12 1.1.1 Definition of SMEs 12 1.1.2 Features of SMEs 14 1.2.3 The necessity of lending SMEs 21 1.2 Lending activities of commercial bank for SMEs 23 1.2.1 The form of the commercial bank loans for SMEs 24 1.2.2 Factors that affect the lending activities of commercial banking for SMEs .27 1.2.3 The challenges for the commercial bank in lending to SMEs 31 1.2.4 Techniques applied by the bank to lending SMEs .33 Chapter 2- Current situation of lending activities for SMEs in Sacombank – Thang Long Branch .37 2.1 Overview of Sacombank – Thang Long Branch’s operation 37 2.1.1 Introduction to Sacombank – Thang Long Branch 37 2.1.2 Organization structure of Sacombank – Thang Long Branch 38 2.1.3 Operation result of the Sacombank – Thang Long Branch 39 2.2 Activities of lending quality toward SMEs at the Sacombank – Thang Long Branch 44 2.2.1 Account outstanding, lending revenue and debt collection revenue 44 2.2.2 Credit capital turnover .50 Small and Medium Enterprises Lending in Sacombank – Thang Long Branch 2.2.3 The ratio of using lending 51 2.2.4 Norms of bad debt 52 2.3 Lending quality evaluation for SMEs at Sacombank – Thang Long Branch .54 2.3.1 Achieved results 54 2.3.2 Limitations 55 2.3.3 Reasons 56 Chapter 3: Recommendations and solutions for developing lending activities for SMEs in Sacombank – Thang Long Branch 58 3.1 Orientation of development lending to SMEs in Sacombank – Thang Long Branch 58 3.1.1 The branch’s overall development orientation 58 3.1.2 Development orientation for SMEs 60 3.2 Solutions .64 3.2.1 Build a flexible customer policy .64 3.2.2 Preferential credit policies suitable for SMEs 65 3.2.3 Improve advisory role, creating the length relationship between the SME borrowers and the bank, formed SMEs department 68 3.2.4 Correct perception of customers, changing customer marketing method 69 3.2.5 Simplifying lending procedures .70 3.2.6 Improve the quality of appraise process 70 3.2.7 Enhance capital mobilization activity .73 3.2.8 Improve capability of banking officer .74 3.3 Recommendations 75 3.3.1 Recommendations to the Government 75 3.3.2 Recommendation to the State Bank of Vietnam 76 3.3.3 Recommendations to Sacombank .77 Conclusion 79 List of references 80 ANNEX 83 ANNEX 84 Small and Medium Enterprises Lending in Sacombank – Thang Long Branch ABBREIVIATIONS ATM Automatic Teller Machine BSNEU Business school of National economics university GDP Gross Domestic Product GNP Gross National Product SACOMBANK Sai Gon Thuong Tin joint stock commercial bank SMEs Small and Medium Enterprises WTO World Trade Organization VCCI Vietnam Chamber of Commerce and Industry Small and Medium Enterprises Lending in Sacombank – Thang Long Branch LIST OF TABLE Table 2.1 Operation result of Sacombank - Thang Long Branch 39 Table 2.2: Growth rate mobilize capital over the years 2008 - 2011 41 Table 2.3 Revenue from the operation of service at 2009 to 2011 43 Table 2.4: Lending growth rate towards SMEs 44 Table 2.5: Scope of lending SMEs in comparion with the whole Branch 45 Table 2.6: The size of lending for SMEs divided loan term 48 Table 2.7: Credit capital turnover of SMEs 50 Table 2.8: The ratio of using lending for SMEs in the Thang Long Branch 51 Table 2.9: Proportion of SMEs’ bad debt in the branch 52 Table 2.10: Structure loan of SMEs .53 LIST OF CHARTS Chart 2.1: Earning before income tax 2009 - 2011 40 Chart 2.2: Total mobilize capital 2009 – 2011 .41 Chart 2.3: Increase in lending activity from 2008 to 2011 .42 Chart 2.4: Account outstanding of SMEs in comparison with .46 the whole Branch 46 Chart 2.5: Credit account outstanding of SMEs divied as loan’s term 49 Small and Medium Enterprises Lending in Sacombank – Thang Long Branch EXECTUTIVE SUMMARY The thesis was conducted to study about the current situation of lending acitvities to SMEs in Sacombannk – Thang Long Branch, the thesia also proposes some possible solutions for improvement SMEs lending in here Certainly, some recommendations are mentioned as well The research is mainly base on the proportion of SMEs lending and the driving factors that affect to credit lending for SMEs at Sacombank – Thang Long Branch to have a better understanding of the reality and necessary to research In this, comparison analysis is necessary for research The methods would be quantitative and qualitative methods Real figures and documents were collected from the annual report and newspaper as well as report that are not published From findings of thesis, the thesis has some following contributions:s - To study and summary theoretical issues of SMEs lending - To Evaluate and analyze actual situation of credit activities for SMEs in Sacombank – Thang Long Branch, analyze factors driving the development of credit activities for SMEs - Propose solutions to improve credit activities for SMEs The thesis divides into three chapters as follows: CHAPTER 1: Theoretical background In this chapter, the thesis refers to theoretical background of SMEs and lending SMEs of commercial banks This chapter consists of two parts The first part is to study fundamental problems of SMEs with its features, roles in the economy and difficulities, challenges in business operations The second part mentions lending activities to SMEs of commercial banks This part will conducts credit forms that commercial banks apply to granting credit, factors that effect lending activities of commercial banks for SMEs and challenges, techniques applied of the bank for lending SMEs Small and Medium Enterprises Lending in Sacombank – Thang Long Branch CHAPTER 2: Current situation of lend ding activities for SMEs in Sacombank – Thang Long Branch In this chapter, the thesis research and analyze current situation of lending activities at Sacombank Thang Long Branch This chapter outlines overview of Sacombank – Thang Long Branch and analyzes, assessment its current lending SMEs situation base on achieved results and limitations In this, attention to assess its limitations with factors affects to SMEs lending, notes out some reasons It is base for propsement solutions and recommendations at next chapter CHAPTER 3: Solutions and recommendations for improving lending activities for SMEs in Sacombank – Thang Long Branch In the last chapter, I propose solutions to improving current situations of SMEs lending activities at Sacombank – Thang Long Branch The chapter researches most of all solutions based on strategic orientations of Sacombank – Thang Long Branhch, weak points, strength points and economic – bank trends These solutions were excuted based upon studying both theoretical aspect and the assessment reality of commercial banking Small and Medium Enterprises Lending in Sacombank – Thang Long Branch INTRODUCTION Rationale According to latest statistics, Vietnam has now over 500,000 SMEs, accounting for 98% of enterprises with registered capital of nearly 2,313,857 billion VND (equivalent to 121 billion dollars) In addition to 500.000 SMEs, nationwide still have about million households trading With particular small and the members of the unit only has a capital of 20 billion, quite a 100 billion VND (equivalent to 1-5 million) and highest use is only 300 employees Even then, SMEs especially in private sector investment is relatively high efficiency compared to other areas [23] Statistics show that SMEs contribute more than 40% of GDP If including the 133,000 co-operatives, farms and individual business households, the region contributed to 60% GDP growth [23] SMEs not only contribute significantly to the economic development of the country but also help create more than one million new jobs each year, which mainly address the number of employees not trained; contribute to poverty reduction, strengthening social security Overall, this business is over 50% use social labor Recognizing the significance of the enterprise SMEs in the development of the country, the government has policies to encourage and support enterprise development SMEs have recognized the role of it’s important for the economic development of the country with the large number of enterprises, shows that this is the most important and potential customer unit that the banks need to exploit in order to reach their business goals However, today SMEs are experiencing difficulties in funding to expand the business scope, renewing technology, improving production capacity and business This is the common reality of SMEs in Vietnam today To resolve this issue requires support from the state, economic organizations, state banks and commercial banks Commercial bank is a credit institution may provide financial services, especially credit, deposit, payment However, the commercial bank is also faced with many difficulties and challenges in the operation to SMEs Small and Medium Enterprises Lending in Sacombank – Thang Long Branch Sacombank is retail banking, with the orientation to become one of the leading retail banks in Vietnam, the improvement of lending activities for SMEs is essential for economy and for development of banking However, in fact lending activities to SMEs in Sacombank – Thang Long Branch now exist some limitations and challenges like: Number of SMEs customer in general corporate customer is less, proportion of account outstanding in total credit account outstanding is too low (internal report of Branch) Therefore, finding out solutions for these problems is an urgent task in the development strategy of Sacombank - Thang Long branch Research objective The objectives of the research are: - To study and summary theoretical issues of SMEs lending - To Evaluate and analyze actual situation of credit activities for SMEs in Sacombank – Thang Long Branch - To Analyze and review limitations, challenges in credit activities for SMEs - To propose solutions in order to improve credit activities for SMEs in Sacombank – Thang Long Branch Research methodology In the thesis, the research base on the proportion of SMEs lending and the driving factors that affect to credit lending for SMEs at Sacombank – Thang Long Branch to have a better understanding of the reality and necessary to research In this, comparison analysis is necessary for research The methods would be quantitative and qualitative methods In this thesis, use both secondary data and primary data - The secondary data is from internal data of Sacombank, annual report, books, financial newspaper, internet… - The primary data is collected by direct interview and discuss with manager and staffs of Sacombank - Thang Long Branch Interviewee Director, Vice- Director, Corporate Department Manager… Amount Content of Interview - Problems related to credit policy for SMEs lending - Orientation of development 10 Small and Medium Enterprises Lending in Sacombank – Thang Long Branch SMEs lending strategies in coming time - Current situations of SMEs lending in Thang Long Branch - The challenges of bank’s lending activities to SMEs and how to overcome - Solutions for improvement Customer Corporate Relationship 10 - Features of SMEs Officer - Difficulties in marketing SMEs, reasons - How to matain length relationship with SMEs - How to accurate evaluate SMEs borrowers and limit risks - Solutions for improving SMEs lending - Beside that, the thesis also attention to combine and integrate comparison, analyzing, and summarizing methods Scope of research The thesis would focuses on studying actual situation of lending activities for SMEs in Sacombank – Thang Long Branch and spells some solutions to improve it In this, the secondary and primary data for the study were collected from 2009 to 2011 at the end of each fiscal year Thesis structure TOPIC: “Small and medium enterprises lending in Sacombank – Thang Long Branch” Introduction Chapter 1: Theoretical background Chapter 2: Analysis of lending activities for SMEs in Sacombank – Thang Long Branch Chapter 3: Recommendations and Solutions Conclusion References Annex 11 Small and Medium Enterprises Lending in Sacombank – Thang Long Branch - One of the marketing methods which is also highly effective, through the existing clients of the Bank The serving staff, the convenience of use of banking services as the basis to create chain reactions, creating "oil spills" reputation of the Bank with the enterprises 3.2.5 Simplifying lending procedures Currently, Sacombank is applying loan process consists of six steps that are considered quite tight and there have been many changes in recent years to more and better respond to customer service needs However, the process of credit that there are still many points to contraction in order to save time and money, both the Bank and the customer As for the SMEs are usually small loans, the banks reevaluate, analyzing financial capability for the tradition and reputation sometimes is not necessary, increases the cost of the Bank's due diligence, long stretches of time, affecting the implementation of the project Simple procedures will obviously be to motivate customers to expand transactions with the Bank Besides, the Bank also should always guide the enterprises to provide the necessary information to customers can complete a tiger quickly, save time and costs 3.2.6 Improve the quality of appraise process The quality appraising for lenders are always key factors deciding the quality of loans, it is vital not only for banks but also for customers Because the loan is good brings secure loans as well as the effectiveness of the bank's business, it also ensures the option of business of the customer is correct and works for business One of the most important of branch’s targets is lending expansion associated with improving the quality of credit Therefore, the quality of appraise process to SMEs enterprises should be improved For the appraise process to achieve high efficiency and ensure timely respond to business opportunities of business, combined with the Marketing requirements of bank officials to reach out to eligible business project of the clue from the new business Help for banking staff has more time to consult, study options, business 70 Small and Medium Enterprises Lending in Sacombank – Thang Long Branch project of the business so that there are the right investment decisions, as well as through that guide businesses establish an adequate financial basis and more advantageous See the importance of evaluation work is urgently needed; banks need to improve evaluation activities in the appraise process of investment projects, business plans of the customers Applying techniques is very important to avoid risk in lending activities  Appraisal customers: Credit officer needs to comply with the principle of ‘5 Cs of lending’: Character, Capacity, Capital, Collateral, and Conditions - Check out the client profile: Banks need to check on the legal status of the client, the main field of business productivity that clients are allowed to operate Obtain detailed information on the status of the credit; the collateral is a mortgage through the CIC References from a variety of sources through the relationship to collect qualitative information about customers - Check out the customer's loan purpose: Considering the purpose of the loan is in line with the trades that allowed businesses to operate there, and if the foreign currency loan customer, you will need to consider the loan to make sure the lenders in accordance with the regulations on foreign exchange eanagement of Vietnam’s State Bank - Analyzing and assessment the financial capability and business operation status of customers: Through annual reports of lenders in connection with the Bank's criteria, a credit officer conduct and to determine the mode of loans as well as mortgage credit line - About collateral: This is the second revenue’s source of the Bank in case the customer does not repay the debt so as an important source, but for SMEs are often hard to meet this requirement, so as to encourage the development of SMEs, banks need flexibility in adopting measures to ensure the money loans 71 Small and Medium Enterprises Lending in Sacombank – Thang Long Branch  On the appraisal of investment projects, business plans This was seen as the decisive appraisal to the ability to get the customer's loan - Needs assessment on the supply of raw materials, inputs and market the output of the product, to consider whether the material to be sure, in time to meet the needs of the project, business plan or not Because otherwise the materials shall not be carried out of business or have materials but not respond timely will affect production and business, to the time and volume of the product is expected to hit the market reduce competition and result in losses for business Besides that, the output is no less important, if the product of the project will not be accepted: market in terms of quality, price or form then the business will not consume the product and therefore cannot repay the Bank With all the important elements above, banks need to learn both the input and the output of the product known as judging the feasibility of the project, business plan - In terms of economic performance that the project, business plans given the Bank is the revenue from interest of the loan if the loan is approved, the interest depends on the following factors: The volume of a loan, the interest rate, and loan term The fact is usually desirable in terms of the amount of interest between the Bank and enterprise thesis that contrast each other On the customer’s side, always look forward to a long term loan and low interest rates while the Bank did the opposite So in order to ensure benefits to both the Bank and the customer shall require an agreement between the two parties - In addition to the economic benefits that the project, business plan directly gives banks, credit officer also takes interest in the benefits that the project, business plan bring for society, encouraging the projects of high social efficiency - If the enterprise has trouble, the bank can not avoid effecting, because in the past the process of appraising the credit officer can advise or require the business to make a few standby risk, this is a very good benefit for both parties in particular to SMEs which have limited management then this may be considered to be a method of minimizing risks 72 Small and Medium Enterprises Lending in Sacombank – Thang Long Branch  Applying credit rating system - Credit rating system is built on the analysis of qualitative and quantitative Therefore, the establishment of department which specialist in task of evaluating the client beside mechanisms ruling power supply is one important factor contributing to accurate assessment of customers, reduce procedural and improving credit quality - Sacombank currently uses credit ranking software which written byself for the appraise process In the past, the old software is simple; with little evaluation criteria and can not meet the requirements of the assessment This ranking system allows the input information and adjusts ranking information easily, led to the adjustment of the customer's credit rating Therefore, credit allocation activity still depends very much on perceive subjectively of the credit officer However, from 2011, the new credit ranking software was written base on the reference of some models of orgnization rank as: Fitch, Standard and Poor's, Moody's Now, this software was put into used The new automated credit rating system for enterprises based on multiple criteria in more detail The required input of legal information, quantitative, qualitative and cannot adjust the imported information without permission of the control level The system for ranking results with high accuracy, in part to meet the needs of evaluation activities Continuing to improve and upgrade the automated credit rating software has important implications for improving the quality of credit allocation In particular, the need to develop the evaluation criteria for SMEs based on the characteristics of these 3.2.7 Enhance capital mobilization activity As we know, the bank give loans for customer from capital mobilized But enterprises and economic organizations usully have non-term deposits because their depositing purpose í to implement payment transactions Therfore, suitable customers for mobilization of more long term capital source is from resident which is quite stable The bank which wants to expand SMEs lending activity must strengthen capital mobilization from residential area to ensure enough capital sources for SMEs loan To enhance capital mobilization activity, Sacombank – Thang Long Branch need to implement some proposal methods below: 73 Small and Medium Enterprises Lending in Sacombank – Thang Long Branch - Continue to expand the network, deployment add a new transaction office in order to attract idle funds from population and economic organizations - Diversified forms of mobilize capital with flexible interest rates, consistent, rich in time and pay Improvement of the procedure of enabling people have the habit of saving deposit and use of banking services such as credit cards, ATM card … - Enhance marketing, advocacy ads on the mass media about the Bank's products and services - Assign criteria tied to mobilize capital growth targets for each customer relationship officer, expert advice - Assign the plan for the department, in association with emulating rewarded promptly - Close collaboration between qualified to perform fast, cooperative work 3.2.8 Improve capability of banking officer Human beings are the most precious resource, is a factor has decided all the results of operations of the business For the banks, ensuring that business’s capital, standardization issues, and personnel training and retraining of officers has a special meaning In fact, one of factors decide to high or low credit quality depends quite a lot on the job, from the observance of the policy engine to the evaluation of the project, review of records, decided to borrow, check use capital gains liabilities In general, any deviations, the loss of the credit in addition to objective factors are the subjectivity of human being as a subject Naturally, including the subjective element of deliberate about the purpose of self-interest but also the elements of level and ability is not able to In the condition, we're in development, more than ever to take care of human resources development for the cause of industrialization and modernization of the nation and the modernization of the banking industry in which private housing targets high Bank credit quality, ensure safety of capital in business are put on top 74 Small and Medium Enterprises Lending in Sacombank – Thang Long Branch To get the standard staff team of the bank, banks need to often guidance, organize training on professional knowledge, the mechanism of the party's undertakings, as well as the economic development of the State, in the process to add the argument with the practices, to regularly organise talks given the circumstances as well as the solutions to enhance the experience, the level of service industry Thereforce, training the staff of credit at the Bank is a long and continuous work could not be expedited However, there needs to be rules and specific steps to retrain officers 3.3 Recommendations 3.3.1 Recommendations to the Government The credit operations of the commercial banks as well as SMEs or economic activities are subject to the impact of the policy of the State Analysis and evaluation on, to create conditions for the development of SMEs as well as to facilitate businesses to access bank loans, State and relevant ministries should have specific policies and even more practical, especially with credit policy The following are some suggestions to the Government and the ministries concerned: - From problems in obtaining access to credit funds of SMEs to meet the need for innovation, technological modernization, expand production scale, The State should have specific policies to support these businesses, such as: stablishment of the credit guarantee fund for SMEs, to attract cheap capital from abroad which has low interate, have appropriate support policies of capital, interest rates, loan terms, etc - The State should establish and improve the legal environment for banking operations A good implementation of registration procedures, trades fully updated, timely and provide the information on the transaction to ensure a convenient way Directed the relevant authorities to help unload the Bank in improving procedures for mortgage assets, bank loans as well as mortgage assets disposal when customers not able to pay the debt to the Bank 75 Small and Medium Enterprises Lending in Sacombank – Thang Long Branch - The State needs to direct relevant ministry for quickly improving project planning, issue legality certificate of land use and ownership housing to individuals and organizations to create favorable conditions for the mortgage to get bank loans - In addition to creating the conditions that make up SMEs, the State also needs to strengthen the management for the enterprise The State needs to have the appropriate policies to support nature, both SMEs’ business management activities in accordance with the provisions of the current law - Need research to give accounting standard fit with the reality of SMEs and in accordance with the applicable accounting law Tax authorities should take measures to adamantly and more effectively in the work of financial management, the bill also enforces their tax laws on SMEs 3.3.2 Recommendation to the State Bank of Vietnam The Government Bank with function as a governing and operating organ of commercial banks system and plays important role which decides business strategy as well as lending task of commercial banks Some recommendations for State bank are as follows: State Bank should apply a different interest rate for overdue debts, according to the group of debt, objective and subjective causes It would be unfair to businesses suffering from overdue interest equal to 150% of the interest in the term when the cause of overdue is the objective causes, such as drought, floods or due to the change of the mechanism of State policy The Government bank should attract more international projects and programs to assist State Bank of Vietnam in training managing personnel, improving knowledge on bank operating and management under international standard, training and improving professional skill on project assessment, risk analysis for banking officer Strictly implementing open operation of bank with foreign banks under commitment with Vietnam-America commercial treaty, WTO From April 1st 2007 foreign banks are permitted to establish their commercial presence in Vietnam under 76 Small and Medium Enterprises Lending in Sacombank – Thang Long Branch such form as: representative office with 100% foreign capital etc., this creates a clearly competitive environment for banking operation, promotes development of capital market with the view to talking advantage of foreign investment capital in order to create more conditions for lending enhancement and promotion for SMEs in Vietnam 3.3.3 Recommendations to Sacombank All activities of the Sacombank- Thang Long Branch are under the direction of Sacombank Therefore, in order to be able to expand lending to SMEs in the area, it could not be lack of supporting of Sacombank Although Sacombank currently has a clear orientation for the expansion of SMEs lending, but in fact many limitations and inadequacies Special subject please refer some of the following recommendations: - Sacombank Thang Long should have a specific policy to apply for SMEs and specify the preference for this object - To improve lending to SMEs can effectively and ensure safety, in time to have soon released "the process of lending to SMEs" rather than the generic process - SMEs activity requires large human resource, so editors should have a specified mode of Sacombank personnel in accordance with the branches which have conditions to development and orientation for this activity - To create the best conditions for banks and businesses to reach out to each other, recommend Sacombank to allow branch for opening more transaction office in important economic focus in the Dong Da District area - Sacombank has to quickly perfecting the internal control system in each unit members, building inspection planning program, regular tire checks of each member and of the whole system In each specific profession to implement mechanisms to inspect, monitor, gave a timely warning, preventing potential risk from an early, espencially in credit activity in order to bring the high performance to the bank 77 Small and Medium Enterprises Lending in Sacombank – Thang Long Branch - Continue to study and improve the system of automated credit rating with the evaluation criteria in line with lending SMEs activities, through this contribute to improved customer evaluation, thereby improving the quality of credit, reducing the risks - Setting up mechanism of preferential interest rates, service fees for those companies with longtime relations with Sacombank, has a history of good credit relations, prestige - Use the flexibility and variety of measures guaranteeing the loan on the basis of ensuring safety in the credit risk 78 Small and Medium Enterprises Lending in Sacombank – Thang Long Branch Conclusion Currently, lending activity of commercial banks plays impotant role in creating capital, motivating business activity of enterprises SMEs played a crucial role in the implementation of the socio-economic goals of the country, especially in terms of job creation and promote competition in the financial sector, not just the commercial bank in the country which has the participation of foreign banks in Vietnam due to the trend of financial openness Therefore, the expansion of lending to SMEs not only facilitates business development but also contribute to promoting the economic development of the country, especially that of SMEs is the kind of business is in a stauts of lack of capital to expand production and improve product quality Through the process of understanding the lending reality of Sacombank – Thang Long Branch for SMEs, account outstanding SMEs has been increased But proportion of lending for SMEs is still relatively low representing in total loans for the whole branch Due to the limited research time, so my thesis inevitably the lack of mercy and inclusiveness, so look forward to the feedback and build more of the master Once again, I would like to thank the teacher - Dr … and the Board of Directors and the employees of Corporate Banking Department at Sacombank – Thang Long Branch for advising and assiting me in completing this final thesis 79 Small and Medium Enterprises Lending in Sacombank – Thang Long Branch List of references Binks, M R., & Ennew, C T., 1997 “Smaller business and relationship banking: The impact of participative behaviour” Entrepreneurship Theory and Practice, Summer: pp 83-92 Dagmar Recklies October 2001 The manager magazine [Online] Address: http://www.themanager.org/strategy/global.htm [Accessed on: 18/01/2018] Decree 56/2009/NĐ-CP of the Government on assistance for the development of SMEs issued on 30/06/2009 Decision of the Governor of the State Bank No: 493/2005/QĐ-NHNN dated 22 April 2005 Fensterstock, A 2005 Credit scoring and the next step, Business Credit 107(3) 46-49 Frame, S., Srinivasna, A., Woosley, L 2001 “The effect of credit scoring on small-business lending” Journal of Meny, Credit, and Banking, 33(3): 81325 Fredric S.Mishkin 1995, Currency, Bank and Financial Market, Publishing House, Hanoi Jaffee, D, & Russell, T 1976 Imperfect information, uncertainty and credit rationing Quarterly Journal of Economics, 90, 651–666 Jankowicz, A D., and Hisrich, R D 1987 “Intuition in small business lending decisions” Journal of Small Business Management, 25(3): 45-52 10 Julien Lefilleur 2009 “Financing SMEs in a context of strong information asymmetry”, Private Sector & Development, 13 (1), pp 11 Günter Verheugen (2005), “The new SME definition - User guide and model declaration”, 15 (5), pp.3 80 Small and Medium Enterprises Lending in Sacombank – Thang Long Branch 12 Ha An 2012 Báo điện tử đại biểu nhân dân [Online] http://daibieunhandan.vn/default.aspx?tabid=75&NewsId=258532 [Accessed on: 20/09/2012] (Nguyen, 1999) 13 Hannan, M & J Freeman 1984 “Structural inertia and organizational change", American Sociological Review, 49: 149-164 14 Lan Anh, Ngoc Lanh 2010 Baomoi.com [Online] Address: http://www.baomoi.com/Giai-phap-nao-ung-cuu-von-cho-doanhnghiep/126/6336248.epi [Accessed on: 11/05/2011] 15 Lehmann, E and Neuberger, D 2001 Do lending relationships matter? Evidence frombank survey data in Germany Journal of Economic Behavior and Organization 45: 339-359 16 Mester, L.J 1997 What’s the point of credit scoring? Business Review (September) 3-16 17 Morrison, J 2004 Introduction to survival analysis in business, The Journal of Business Forecasting Methods & Systems 23(1) 18-22 18 Nguyen Van Thang, Le Thi Bich Ngoc and Nick J Freeman 2006 “A Study of Bank Lending to Private SMEs in Vietnam”, Asia-Pacific Business Review, 12 (4), pp 6-8 19 Stiglitz, J and Weiss, A 1981 Credit rationing in markets with imperfect information American Economic Review 71: 393-410 20 Peterson, M., & Rajan, R G., 1994 “The benefit of lending relationships: Evidence from small business data” The Journal of Finance, 19(1): 3-37 21 Williamson, S 1986 Costly monitoring, financial intermediation, and equilibrium credit rationing Quarterly Journal of Economics, 102 135-145 22 Williamson, S 1987 Costly monitoring, loan contracts, and equilibrium credit rationing Journal of Monetary Economics, 18, 159-179 81 Small and Medium Enterprises Lending in Sacombank – Thang Long Branch 23 05/2010 Engineering review [Online] Engineering review magazine Address:http://www.engrreview.com/Editorial_pages/2010/may_10/bankingfinance_ind-focus_01.html [Accessed on: 18/01/2012] 24 2011 Thời báo kinh tế Việt Nam: Doanh nhân [Online] Address: http://doanhnhan.vneconomy.vn/20110511120914323P0C5/doanh-nghiepva-ngan-hang-dang-cung-doi-von.htm [Accessed on: 11/05/2011] 25 Tạp chí cộng sản 07/04/2012 Tạp chí tài [Online] Address: http://www.tapchitaichinh.vn/Nghien-cuu-trao-doi/Doanh-nghiep-nho-vavua-Viet-Nam-Lac-quan-truoc-them-nam-moi/9025 [Accessed on: 07/04/2012] 82 Small and Medium Enterprises Lending in Sacombank – Thang Long Branch ANNEX Interview Guideline For Bank’s Manager - Name: - Occupy position: Questions: What is the current scale of outstanding loans to private sector SMEs (as a % of your bank’s total outstanding loans)? ………………………………………………………………………………… What changes has there been in this ratio over time? ………………………………………………………………………………… What are the main challenges your bank faces in lending to private SMEs, relative to other kinds of lenders? How you try to overcome these challenges? Challenge: ………………………………………………………………………………… Overcome by: ………………………………………………………………………………… How are SME loans monitored by your bank? ………………………………………………………………………………… Where you get information on SMEs in general, and on specific applicants? ………………………………………………………………………………… In general, how you evaluate the business plans of loan applicants? How important is collateral? How important is management capability? ………………………………………………………………………………… In general, how you know whether the borrower has used the money for reason stated in the loan application? Probe: you visit them, or ask them to submit reports? ………………………………………………………………………………… How will you for improving lending activities to SMEs in your branch? ………………………………………………………………………………… 83 Small and Medium Enterprises Lending in Sacombank – Thang Long Branch ANNEX Interview Guideline for Banking Customer Relationship Officer - Name: - Occupy position: - Time in working: Questions: Could you give me some most typical features of SMEs? ………………………………………………………………………………… How you reachs SMEs? Is it difficult? If yes/no, reasons? ………………………………………………………………………………… What did you base on for consulting to SMEs? ………………………………………………………………………………… How has you maintained relationship and develop it with SMEs? ………………………………………………………………………………… Do you think, lending activity to SMEs is risk? yes/no, reasons? ………………………………………………………………………………… What are the techniques you used to apply for appraise assessment? ………………………………………………………………………………… How will you for improving lending activities to SMEs in your branch as well as your duty? ………………………………………………………………………………… How can you ensure collect SME’s loans on time? ………………………………………………………………………………… 84 ... SMEs lending - Orientation of development 10 Small and Medium Enterprises Lending in Sacombank – Thang Long Branch SMEs lending strategies in coming time - Current situations of SMEs lending in Thang. .. business service 26 Small and Medium Enterprises Lending in Sacombank – Thang Long Branch  Based on the type of currency - Lending in local currency - Lending in foreign currency - Lending in. .. “Small and medium enterprises lending in Sacombank – Thang Long Branch? ?? Introduction Chapter 1: Theoretical background Chapter 2: Analysis of lending activities for SMEs in Sacombank – Thang Long Branch