LV Thạc sỹ_Improving the effectiveness of lending to small and medium enterprices at Vietinbank

NATIONAL ECONOMICS UNIVERSITY FACULTY OF FOREIGN LANGUAGES ENGLISH FOR BUSINESS DEPARTMENT - - IMPROVING THE EFFECTIVENESS OF LENDING TO SMALL AND MEDIUM ENTERPRISES AT VIETINBANK – BEN THUY BRANCH NATIONAL ECONOMICS UNIVERSITY FACULTY OF FOREIGN LANGUAGES ENGLISH FOR BUSINESS DEPARTMENT - - IMPROVING THE EFFECTIVENESS OF LENDING TO SMALL AND MEDIUM ENTERPRISES AT VIETINBANK – BEN THUY BRANCH ACKNOWLEDGEMENT Firstly and foremost, I would like to convey my special thanks to my supervisor, Ms …, for her great support, guidance, recommendation, and encouragement to me during my report writing process from March to May of 2013 Without her help, I could not have done this thesis Secondly, I would also like to give my sincere thanks to the staff in Corporate Banking Department of VietinBank – Ben Thuy branch for their assistance, enthusiasm, and suggestion for me when I was doing my internship there Thanks to them, I really could understand and well some specific tasks related to banking activities They also provided me with necessary data and figures so that I could accomplish my report Thirdly, I would like to express my gratitude to all the teachers of the Faculty of Foreign Languages of National Economics for teaching me and giving me the background knowledge of related subjects such as English for Banking and Finance, Business Communication, and EAP writing Last but not least, I also appreciate the support and encouragement of my family and my friends, who always encouraged and supported me during my preparation and accomplishment of this report TABLE OF CONTENT LIST OF ABBREVIATIONS i INTRODUTION 1 Introduction of the research topic Rationales Research questions Scope of the research .2 Methodology 1.1 Introduction of VietinBank – Ben Thuy branch 1.1.1 History of establishment and development 1.1.3 General business results 1.2 An overview of lending activities to SME at VietinBank – Ben Thuy branch 1.3.1 Bad debts .6 1.3.2 Interest rates 1.3.4 Outstanding loans 1.3.5 Small and medium enterprises .7 2.1 Joint-stock commercial banks’ activities of lending to small and medium enterprises 2.1.1 Definition .8 2.1.2 Types of lending .8 2.1.3 The role of lending to small and medium enterprises .9 2.1.4 Characteristics of lending to small and medium enterprises 10 2.1.5 Procedure of lending to small and medium enterprises 10 2.2 Definition of effectiveness of lending to small and medium enterprises of joint-stock commercial bank .11 2.3 Criteria to define the effectiveness of lending to small and medium enterprises of joint-stock commercial bank .11 2.4 Factors affecting to the effectiveness of lending to small and medium enterprises of joint-stock commercial bank .12 2.4.1 Subjective factors 12 2.4.1.1 Lending policy 12 2.4.1.2 Lending information .13 2.4.1.3 Personalities and qualifications of LOs 13 2.4.1.4 Fund mobilization 14 2.4.1.5 SMEs’ capacity and honesty 14 2.4.2 Objective factors 14 2.4.2.1 Social-economic factor 14 2.4.2.2 Political factor .15 3.1 The real situation of lending to small and medium enterprises 16 3.1.2 The number of SMEs having credit relationship with VietinBank – Ben Thuy branch 21 3.1.3 Lending revenue and sales of debt collection for SMEs at VietinBank – Ben Thuy branch 22 3.1.4 The situation of outstanding loans and loans growth rate to SMEs 24 3.1.5 Real situation of bad debt 27 3.1.6 Profit from lending activities to SMEs 29 3.2 Evaluating the effectiveness of lending to small and medium enterprises of Vietinbank – Ben Thuy branch 30 3.2.1 The achievement from lending to small and medium enterprises of Vietinbank – Ben Thuy branch 30 3.2.2 The disadvantages of lending to small and medium enterprises of Vietinbank – Ben Thuy branch 30 3.2.3 The reasons for the disadvantages of lending to small and medium enterprises of Vietinbank – Ben Thuy branch 31 3.2.3.1 Objective causes 31 3.2.3.2 Subjective causes 33 CHAPTER – RECOMMENDATIONS 36 4.1 Orientation of banking activities of VietinBank – Ben Thuy branch in the next period 36 4.2 Solutions to improve the effectiveness of lending to small and medium enterprises by VietinBank - Ben Thuy branch 37 4.2.1 Developing appropriate lending policies for SMEs .37 4.2.1.1 Improving procedure of lending 37 4.2.1.2 Applying flexible interest rate range .37 4.2.1.3 Diversifying lending methods .38 4.2.1.4 Implementing flexible loan guarantee 38 4.2.2 Improving the quality of lending evaluation, inspection, and monitoring 39 4.2.3 Improving the quality of the LOs 40 4.3.2 Recommendation to the State Bank .41 4.3.3 Recommendation to VietinBank headquarters .41 REFERENCES REFERENCES LIST OF ABBREVIATIONS SMEs Small and medium-sized enterprises VND Vietnam dong LOs Lending officers NPL Non-performing loan VietinBank Ben Thuy joint stock commercial bank for industry and trade i LIST OF TABLES Table 1: Results of overall operations in the period of 2010 to 2012 .5 Unit: billions VND Table 2: The number of SMEs having credit relationship with VietinBank – Ben Thuy branch in the period of 2010 to 2012 22 Unit: SMEs 22 Table 3: Lending revenue and sales of debts collection for SMEs in VietinBank – Ben Thuy branch in the period of 2010 to 2012 23 Unit: billion VND 23 Table 4: Outstanding loans to SMEs of VietinBank – Ben Thuy branch in the period of 2010 to 2012 24 Table 5: Outstanding loans to SMEs based on duration in the period of 2010 to 2012 25 Table 6: Real situation of bad debt to SMEs in the period of 2010 to 2012 28 Table 7: Profit from lending activities to SMEs in the period of 2010 to 2012 29 ii LIST OF CHARTS Chart 1: Organization structure of VietinBank – Ben Thuy branch Chart 2: Outstanding loans to SMEs based on duration of VietinBank – Ben Thuy branch in the period of 2010 to 2012 .26 iii complicated that LOs may miss some steps or ignore some steps as they require LOs a lot of time to follow the process step by step Besides, some of these steps need to be done with the corporation of customers Customers may get down when they have to take so many actions to complete the lending procedure In this case, some helpful and essential information may be forgot or hidden by the customers leading to mistakes in granting loans This is a thing, which the bank never expects to cope with when they make contracts with customers • Loans and loan sales to SMEs were not so high In recent years, VietinBank – Ben Thuy branch was really interested in developing lending to SMEs, considered them as potential customers that are the bank's strategic objectives However, the proportion of outstanding loans to SMEs was not high and not commensurate with the actual potential of SMEs in the area In this time, VietinBank – Ben Thuy branch has not developed many new customers The main customers now are merely traditional customers having long-term relationship with the bank So, for coming years, VietinBank – Ben Thuy branch needs more measures to attract new customers • The results of the business operation of VietinBank – Ben Thuy branch in general and the corporate banking department in particular are affected by many factors • The works of supporting medium and long-term lending to SMEs remains limitations Transferring lending structure to the medium and long-term is necessary to create conditions for SMEs to thrive in the future However, the current rate of medium and long-term loans in total outstanding volume of SMEs is not high while the proportion of short-term loans accounts for the most part 3.2.3 The reasons for the disadvantages of lending to small and medium enterprises of Vietinbank – Ben Thuy branch 3.2.3.1 Objective causes • Economic environment In 2010, the economy grew positively and the most notably impressive is the recovery of industrial sector with an increase of nearly 14% Credit growth in 2010 could reach 27% and growth of money supple was at 25% However, it was noted that foreign currency credit growth was much higher than that of national currency The banking system was in trouble in capital mobilization Interest rate remained 31 very high mainly because of high inflation exceeding expectation, tight monetary policy, increase in public sector investment and pressure from the rules, especially the Circular No.13 Banking system had to face many difficulties in the context of unstable economic situation, the requirements of Circular No.13 and the requirements of increasing the minimum capital to 3,000 billion VND The year of 2011 was the year in which the economy flourished but was more volatile The national economy faced troubles when the real estate market froze, the price of gold continuously reached a peak, about 50,000 private enterprises went bankrupt and stock market could not maintain its stability Especially, the banking market was more volatile The treatment of weak banks was expected to last for years to come Consecutive revelation of hundreds of black credit default in many localities had made many people in hardships and troubles There was no surprise that the "debtor" was often associated with real estate, banking and securities It raised a worry that there was a sign of a relationship between black credit and official funding channels This domino effect was said to continue if the real estate market still froze and cheap capital from the bank was not open The year of 2012 was a difficult year for the economy of Vietnam from the macro-economy to enterprises and households Banking sector was not an exception to this gloomy business situation Many commercial joint stock banks’ profits fell sharply compared with that of 2011 A number of major banks such as VietcomBank, VietinBank, BIDV only rose their profits slightly last year As estimated, the yearly credit growth was merely nearly 9%, lower than 2011 credit growth of 11% which was considered to be the lowest in the history of the development of banking sector Although mobilization and lending interest rates of the year had been adjusted times, mobilization interest rate declined to 8% per year and lending interest rate was about 12% -13% per year at the end of this year • Business environment VietinBank – Ben Thuy branch is located in Vinh city which is the area of many other trading rooms of banks such as Vietcombank, Seabank, Maritime Bank, and also BIDV – Nghe An branch, while people in this area are mainly workers, civil servants, students, business households and some small private enterprises Therefore, the competitions from others banks are rather high and make it more 32 difficult for the bank to communicate with new customers and keep the long-lasting relationships as these private customers and enterprises have so many alternatives • Political and social environment Currently, almost successful SMEs being keen on expanding their businesses are in shortage of land for the site The application for land allocation or leasing of SMEs is hindered by complex procedures The information of the socio-economic planning of the provinces, cities and localities are not common to the businesses to invest timely The qualifications of officers solving administrative procedures are still limited, making it difficult for businesses to implement investment projects Another problem is that the business establishment registration and business management of authorities sometimes remain loose with no legal security for lending In addition, banks are facing problems due to policies of bank's right to actively handle collateral when the client cannot pay their debts Problems in the processing loan collateral not only affect to the lending to SMEs but also limit lending in general because the bank has not authorized to actively handle collateral 3.2.3.2 Subjective causes The bank itself has psychological hesitation to provide credit to a number of SMEs due to the instabilities of the business sector such as high bankruptcy rate, difficulty in coping with many fluctuations in the market today So in term of psychology, the bank still focuses mostly on lending to large enterprises which have high reliability In addition, the bank itself also contains some weaknesses affecting to the quality of lending to SMEs: • The evaluation work This is an important part of the credit process However, today the collection of information of SMEs in Vietinbank – Ben Thuy branch also has many limitations Information and data system of SMEs are not fully updated and the information that LOs gather is sometimes not consistent and systematic In addition, it is hard for LOs to monitor the real status of the business and its operation on the site, so the evaluation sometimes is based on subjective perspective • Inspection and supervision work 33 Inspection and monitoring during and after lending are not effective, a number of loans then turn to bad debt and the bank needs to sue enterprises This means an increase in management costs of VietinBank – Ben Thuy branch • Measures to ensure lending safety: In spite of following the policy of supporting SMEs in providing credit when necessary, the bank still have to ensure its business Therefore, lending conditions of VietinBank – Ben Thuy branch are fairly strict in which collateral is the first condition access to loans Thus, many enterprises have to face difficulty in raising capital • Marketing activities VietinBank – Ben Thuy branch pays much attention to SMEs but has not considered these enterprises as a strategic customers and this perspective creates barriers for the bank to communicate with new potential customers • Quality of LOs The work of LOs requires carefulness, thoroughness and accuracy However, due to the complexity of lending information investigation, lending procedure and information collection from SMEs as well as the low qualifications advanced, LOs commonly face obstacles and mistakes in evaluation and lending process The Corporate Banking Department has mostly young staffs, including two new graduates These staffs are often inexperienced and confused in handling issues arising unexpectedly, recovering overdue debts or investigating to verify lending information This affects significantly to the quality of lending to SMEs at the branch Causes also come from SMEs as they not have enough business reputation: The banks often hesitate to lend SMEs as this kind of customers has limitations in human resources management, bad financial transparency, low equity, and cannot access to information and market The management team and employees of SMEs have little experience These enterprises lack professional and skilled technical staff, thus they cannot work out a suitable and proper strategic goals and plans In addition, financial statements of SMEs sometimes are not correct, mainly used to deal with tax On the other hand, the business activities of SMEs often run without economic contracts, receipts and other grounds to prove the purpose of loan 34 use to gain trust from the bank Therefore, the confidence of the bank to SMEs is not so high and even has an intention of decreasing Additionally, some businesses also use the funds for improper purposes aiming at gaining benefit for business owners themselves or for illegal business activities This situation is indeed not good for lending quality of the bank Moreover, most businesses not have the financial report or the financial statements that reflect the real situation of business The bookkeeping system and accounting methods of the business are often incomplete, inaccurate and not transparent This makes it difficult for LOs to assess their true potential evaluation of customers 35 CHAPTER – RECOMMENDATIONS 4.1 Orientation of banking activities of VietinBank – Ben Thuy branch in the next period In 2013, VietinBank – Ben Thuy branch continues to maintain its outstanding achievements that the branch has reached in 2012 The general targets are the followings: First, capital mobilization in Vietnam currency from the economy reaches 2800 billion VND that can be translated into 24% higher than that of 2012 This is a targeted number that the bank wishes to reach in the coming time Second, the branch will try to increase total outstanding loans in Vietnam currency at 2500 billion VND that means 28% higher when compared with that of 2012 Third, VietinBank – Ben Thuy branch will try best to maximize bad debt ratio at 0.5% but the branch still make great effort to minimize this ratio as the smaller this ratio is, the better business operations are Fourth, Profits are expected to reach up to 95 billion VND In the basis of SME development policy of the Party and State as well as future business orientation of Vietinbank, VietinBank – Ben Thuy branch also has its own orientations in the management of lending to SMEs as the followings: First, VietinBank – Ben Thuy branch will implement a solution to expand SME customer range with a focus on improving product quality, training staff of the Corporate Banking department and other trading rooms, and finding new funds to support, thereby increasing the proportion of SME loans in total loans and increasing proportion of medium and long-term loans Second, the branch will continue to review the operational mechanism, simplifying procedures and shortening the time of loan settlement, especially the process of evaluating and creating favorable conditions so that SMEs can easily get a loan for business Finally, the bank will try to build good image of VietinBank – Ben Thuy branch in each client in order to contribute to help the branch in particular and VietinBank in general to become one of the leading banks serving SMEs 36 4.2 Solutions to improve the effectiveness of lending to small and medium enterprises by VietinBank - Ben Thuy branch In the basis of the research on lending activities at VietinBank – Ben Thuy branch, I have worked out some solutions to improve the effectiveness of lending to SMEs by this branch as followed: 4.2.1 Developing appropriate lending policies for SMEs 4.2.1.1 Improving procedure of lending As we all know, capital need of SMEs is very large, but the access to bank loans is not so easy One of the reasons for this is that the lending procedure is cumbersome and complicated Many customers coming to the bank not know what papers are needed This reduces the capacity of banks and gets the customers down This leads to a loss of business opportunity Customers may not continue their relationships with the bank that affects badly on its profit and the bank's image Therefore, Vietinbank – Ben Thuy branch needs to simplify lending procedures such as guiding customers about all the necessary documents and papers for loan application on their first time having lending relationship with the bank LOs also need to understand the business and its sector to know whether the business have any preferential credit policy or not and consider the credit history of the customer to know they can reduce some optional steps to save time and cost This requires LOs to master their tasks and legal documents to advise clients in compliance with the provisions of the law and the bank without any difficulty and complication 4.2.1.2 Applying flexible interest rate range Interest rates are tools that help banks to compete with each other and attract more and more target customers VietinBank – Ben Thuy branch generally only applies negotiated interest rate for medium and long-term loans, but not for shortterm ones However, SMEs can mainly access to short-term funds In this case, VietinBank – Ben Thuy branch should develop a flexible interest rate range in accordance with the condition and ability of each business It is essential to harmonize the two sides’ benefit At the same time, the branch should have its own regulations of interest rate in the event of early repayment before due, reduce interest rate if business meets so many objective difficulties and negotiate interest 37 rate during the loan term By doing these things, the branch will accordingly increase its competitiveness to other rival banks in the area 4.2.1.3 Diversifying lending methods Lending methods have to be able to ensure good lending mechanisms and to ensure that customers use funds quickly and sparingly Currently, VietinBank – Ben Thuy branch is applying direct loans and loans under the credit limit In addition to these two methods, the branch should extend to other SME lending methods that can both facilitate SME business activities and ensure capital adequacy of banks Besides, VietinBank – Ben Thuy branch should also consider lending practice of overdraft limit for loyal and reliable customers With this method, the bank allows the borrowers to exceed the balance on the current account to a certain limit They can actively withdraw from their account with a limit as agreed at any time they wish to use capital and also can actively pay the debt at any time they want Using overdraft technique allows businesses to use capital in an active and flexible way This method is not widely adopted yet It is mostly applied to customers who have great business relationship with the bank, who have qualified financial management and have relatively good credit rating Therefore, to be able to apply this method to SMEs, VietinBank – Ben Thuy branch need to improve the quality of evaluation, sorting, and rating customers On the other hand, the branch may contribute capital to investment projects and cooperate with SMEs Thus, VietinBank – Ben Thuy branch can not only extend lending range but also directly supervise, manage loans and generate income for itself On the SME side, they have collaboration and advice from the bank that can help them to business more efficiently and reduce risks for both bank and businesses 4.2.1.4 Implementing flexible loan guarantee SMEs often have low financial capacities with small-scale factory equipment so they not have enough collateral that leads to difficulty in accessing bank loans despite the fact that they have the ability to repay Therefore, VietinBank – Ben Thuy branch should not consider collateral as a prerequisite for lending and need more flexibility in loan security policy In particular, the focus is to change the form of guarantee besides the currently popular form of mortgage loans 38 4.2.2 Improving the quality of lending evaluation, inspection, and monitoring Customer evaluation is one of the most important factors and the first stage in assessing loan quality and limiting lending risk It is fundamental for LOs to make lending decisions If the evaluation is conducted well, it will result in accurate assessments of the financial status and ability to pay debts, which will be basis for accurate lending decisions and minimization of lending risks To ensure the quality of the evaluation, LOs have to capture accurate information about customers from establishment license, business registration certificate, director appointment decision, investment license, corporate regulations and so on They also need to base on financial statements to know clearly about SME financial capacity and the ability of self-control in the enterprise business, and base on the business plan to understand profitability, repayment source of the business Moreover, LOs should also learn the lending history of SMEs to evaluate the past repayments and consider goodwill to pay debt of SMEs Since then, LOs make the right decision in granting loan To this job well, VietinBank – Ben Thuy branch should have LOs who master professional and have the ability to research and ability to analyze the SME market It is also necessary to support them with modern equipment to be able to collect complete and fast information needed for the evaluation Another equally important stage is to inspect and monitor loans This is an indispensable activity in lending activities of banks Bank officials after disbursing to businesses not just wait until due to collect interest and principal but also need to constantly check and monitor the use of loan capital Doing this helps the bank to prevent lending behavior inconsistent with the purpose mentioned in lending contract Thus, periodically, LOs test must conduct evaluation and monitoring of loan use to timely detect violations to have timely responses such as debt recovery ahead of schedule or stopping disbursement and so on LOs have to this job seriously and constantly and not take any advantage of hiding reality of the business for personal profit In addition, during the inspection and supervision, if LOs find that SMEs are having problems or difficulties in business, they will give customers necessary advice and help them to overcome difficulties 39 4.2.3 Improving the quality of the LOs VietinBank – Ben Thuy branch should regularly organize training courses, seminars in banking sector and excellent LO contest to have a basis for evaluation and classification of employees Board of directors should also base on the effectiveness of each staff to assess their capacity to reward them or promote them to higher positions This is to stimulate enthusiasm, creativity and sense of responsibility of each LO and prevent moral hazard thereby improve the quality of bank credit 4.3 Recommendation to improve the effectiveness of lending to SMEs of VietinBank – Ben Thuy branch 4.3.1 Recommendation to the Government To assist the development of SMEs and contribute to the improvement of lending to SMEs, the State authorities should implement the following measures: First, the Government should try to create a stable economic and political environment Macroeconomic managing in the near future is very complex and difficult It requires the Government and its agencies to keep abreast of the situation and give out necessary and flexible policies that are consistent with fiscal and monetary policies The government should also improve forecasting capability and enhance information exchange between governmental forecast agencies and national and international organizations The Government additionally needs to apply macroeconomic policy, monetary policy, fiscal policy, exchange rate policy and other policies synchronously and comprehensively to achieve the target of curbing inflation, stabilizing the foreign exchange market Moreover, the Government also needs to assess and record the responses from the economy after a period of implementation of economic policies to timely adjust Second, the Government should facilitate SMEs in registration and operation license Besides, the Government also needs to propose to the Congress to issue related laws and regulations about facilitating Association of SMEs to contribute to the process of issuing the relevant legislation Third, legal system needs to be perfected by the Government because it has a major impact on the operation of SMEs and affects to lending policies of banks for SMEs With the completion of the legal system, banks have flexibility to modify their lending policies This creates many opportunities for SMEs to access loans, expand the scale of production and develop business 40 4.3.2 Recommendation to the State Bank State Bank should continue to adjust the content of regulations of granting loans, simplify lending procedures, and ensure lending safety In the process of issuing policies, State Bank should also base on lessons learned from developed countries to make timely and appropriate amendment in the context of global economic integration In addition, the guidelines should also be clear and understandable so that banks can quickly apply correctly as required State Bank needs to organize regularly seminars between banking leaders and well-known professors in the field of finance in the country and the world to improve the quality of bank staff Besides, the policy of the Party, the state must also be timely dissemination to the bank through the briefing session, the conference because the financial institutions holding important role in stabilizing prices inflation and growth objectives and currency 4.3.3 Recommendation to VietinBank headquarters To increasingly develop in the financial markets as well as make more and more profit and build up reputation, VietinBank needs to actively participate in the interbank market, look for potential clients and create good relationships with not only individual customers, corporate customers but also other banks in the same area At the same time, the bank should closely follow the business operations to timely remind as well give out proper orientations and directions This helps the bank to have a comprehensive view of the business and its characteristics, thus helps the bank to outline upcoming business strategy correctly and efficiently Besides, in the era of booming information technology, to enhance the competitiveness, the bank needs to focus more on infrastructure, machines and computer systems for better banking transaction operations 41 CONCLUSION SMEs account for a large and increasing number in the total number of enterprises of the whole economy Thus, they play an important role in the economic development of the country In this perspective, banks are keen on lending to these customers Keeping up with this trend, in recent years, VietinBank – Ben Thuy branch has been focusing on lending to SMEs, which results in an increase in outstanding loans, lending revenue and profit To achieve this success, the branch has paid much attention to evaluating and monitoring the use of loans in order to avoid risks Besides all the achievements, however, the branch still maintains certain limitations and weaknesses in terms of lending procedure, lending policy, and also the ability of lending officers Realizing the impact of these limitations to the effectiveness of lending to SMEs, VietinBank – Ben Thuy branh has been making great effort to deal with them In this report, the author has pointed out the real situation of lending to SMEs of the branch in the past three years and made an analysis of this issue In addition, the writer has recommended some solutions to improve the effectiveness of lending to SMEs Due to limitation on internship duration, knowledge, ability, and my own practical experience, I could not avoid inevitable shortcomings I look forward to receiving comments from teachers and readers Finally, once again, I would like to express my sincere gratitude and thanks to Ms … and all the staff in Corporate Banking Department who have helped and guided me during the time of writing this report 42 43 REFERENCES Vietnamese: Bộ Tư pháp (2010) Luật tổ chức tín dụng, Hà Nội Phan Thị Cúc (2008) Nghiệp vụ ngân hàng thương mại, nhà xuất Thống kê, Hà Nội Hồ Diệu (2002) Quản trị ngân hàng, nhà xuất Thống kê, TP Hồ Chí Minh Phan Thị Thu Hà (2002) Giáo trình Ngân hàng thương mại, nhà xuất Giao thông vận tải, Hà Nội Ngân hàng Công thương Bến Thủy (2012) Báo cáo kết kinh doanh năm (2010-2012), Nghệ An Ngân hàng Nhà nước (2007) Quyết định 18/2007/QĐ-NHNN, Hà Nội English: Peter S Rose (2008) Commercial Bank Management, McGrawHill/Irwin, USA Websites: Bad debt Retrieved from http://en.wikipedia.org/wiki/Bad_debt Characteristics of lending Retrieved from http://cafef.vn/doanh-nghiep/di-vay-von-la-di-ban-niem-tin201207171008116ca36.chn Vu Thu Hien (2010) Factors affecting to the lending activities of joint stock commercial banks, VOER http://www.voer.edu.vn/module/kinh-te/cac-nhan-to-anh-huong-den-hoatdong-cho-vay-cua-ngan-hang-thuong-mai.html Interest rate Retrieved from https://en.wikipedia.org/wiki/Interest_rate Outstanding loan Retrieved from http://www.ehow.com/facts_6885935_definition-outstanding-loans.html Role of lending Retrieved from http://voer.edu.vn/module/kinh-te/vai-tro-cua-tin-dung-ngan-hang-doi-voidoanh-nghiep-vua-va-nho.html Nguyen Tien Trung Chỉ tiêu đánh giá hiệu hoạt động tín dụng NHTM, trungblc.com http://www.trungblc.com/index.php/hoc-thuat/9-chi-tieu-danh-gia-hieu-quahoat-dong-tin-dung Small and medium enterprises Retrieved from http://vi.wikipedia.org/wiki/Doanh_nghi%E1%BB%87p_nh%E1%BB %8F_v%C3%A0_v%E1%BB%ABa http://vneconomy.vn/2011030311485770P0C6/chinh-thuc-luat-hoa-tran-laisuat-huy-dong-vnd.htm ... the impacts of the signs of risk to the ability of customer’s obligations to the bank + Working with the customer about the signs of risks and/ or reporting the results of lending monitoring and. .. indicator illustrates the scale of SME lending of the bank • Loan to SMEs ratio = Total loan to SMEs / Total outstanding loan (%) This indicator shows the proportion of loans to SMEs in total... The disadvantages of lending to small and medium enterprises of Vietinbank – Ben Thuy branch 30 3.2.3 The reasons for the disadvantages of lending to small and medium enterprises of Vietinbank