Improvement of credit grant procedures at ho chi minh development joint stock commercial bank hdbank ba dinh branch

Cohort 2015 – 2017 MASTER’S THESIS IMPROVEMENT OF CREDIT GRANT PROCEDURES AT HO CHI MINH DEVELOPMENT JOINT STOCK COMMERCIAL BANK (HDBANK) - BA DINH BRANCH AUTHOR: PHUNG VAN THINH SUPERVISOR: Dr MAI ANH Hanoi, June 2017 ACKNOWLEDGEMENT I declare that this master’s thesis is my own research and the data and the material used in this thesis have clear sources and references to all the sources The result of this thesis is honest and derived from the actual situation of the organization In order to complete this master’s thesis I owe many people many thanks for their supporting First, I would like to express my endless thanks and gratefulness to my supervisor Dr Mai Anh Her kindly support and continuous advices went through the process of completion of my thesis Without his assistance, the thesis would have been done effectively So far, I would like to thank all the lectures and staffs of International school – Vietnam National University Hanoi and University de Nantes for their teaching and supporting me to achieve knowledge and experience My special thanks to all staffs and management’s branch of HDBank- Ba Dinh branch; for their kind assistances and support in providing me data and advices to complete the research Finally, I would like to express my special thanks to my parents for their endless love and motivation Thank you! TABLE OF CONTENTS TABLE OF CONTENTS INTRODUCTION CHAPTER 1: FUNDAMENTALS OF CREDIT PROCEDURES IN COMMERCIAL BANKS 1.1 The credit procedures of the borrower 1.1.1 Introduction of the credit procedures 1.1.2 The importance of understanding and complying with the credit procedures in the credit procedures 1.1.3 The role and relationship between credit procedures - credit risk 1.2 Principles and order of credit procedures 1.2.1 Credit rating principle 1.2.2 The order of the credit procedures 1.3 Overview on the World Wide Web Conflicts and lessons for Viet Nam 17 1.3.1 Summary of credit procedures at some large banks in Vietnam 17 1.3.2 Lessons on credit procedures at some major banks in Vietnam 18 CHAPTER 2: STATUS OF CREDIT PROCEDURES AT HDBANK BA DINH BRANCH 20 2.1 Overview about HDBank 20 2.1.1 Process of formation and development 20 2.1.2 Organizational structure 20 2.1.3 Operation activity in period 2014 – 2016 23 2.2 Status about credit procedures of HDBank 32 2.2.1 Credit procedures of HDBank 32 2.2.2 Steps of credit procedures at HDBank 33 2.3 Comparison of credit procedures of HDBank with some other large commercial joint stock Banks in Vietnam 40 2.3.1 Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) 40 2.3.2 Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) 42 CHAPTER 3: RESEARCH METHOD 45 3.1 Research method 45 3.2 Content of survey 46 3.3 Data collection 46 3.4 Data analysis 46 CHAPTER 4: ANALYSIS OF SURVEY RESULT 47 4.1 Survey result of implementing credit procedures at HDBank Ba Dinh Branch 47 4.1.1 Guarantee of loan principle 47 4.1.2 Strict coordination between divisions and functional agencies 47 4.1.3 Satisfaction of customers 48 4.1.4 About credit procedures 49 4.2 Assessment about implementation of credit procedures at HDBank Ba Dinh Branch 55 4.2.1 Advantages 55 4.4.2 Disadvantages 57 CHAPTER 5: SOLUTIONS TO IMPROVE CREDIT PROCEDURES AT HDBANK BA DINH BRANCH 59 5.1 Development objective of HDBank Ba Dinh Branch 59 5.1.1 General objective of HDBank Ba Dinh Branch up to 2020 59 5.1.2 Credit target of year 2010 of HDBank Ba Dinh Branch 60 5.2 Some solutions to improve credit procedures at HDBank Ba Dinh Branch 61 5.2.1 Group of solutions for the content of the steps in the process 61 5.2.2 A set of development methodologies for implementing the steps in the process 63 5.2.3 Group of solutions on the division and coordination between departments in the bank 68 5.2.4 Group of support solutions 69 5.3 Recommendations 70 5.3.1 Recommendations to the Government 70 CONCLUSION 73 LIST OF REFERENCES 74 LIST OF FIGURES Figure 1.1: The organizational apparatus of HDBank – Ba Dinh Branch 21 Figure 2.1: Total income in period 2014-2016 24 Figure 2.2: Growth of credit outstanding balance in period 2014-2016 25 Figure 2.3: Credit structure in 2014 26 Figure 2.4: Credit structure in 2016 27 Figure 2.5: Credit procedures at HDBank Ba Dinh Branch 32 LIST OF TABLES Table 2.1: Business result statement of HDBank in 2014-2016 23 Table 2.2: Credit size in period 2014-2016 25 Table 2.3: Situation of short, medium and long-term loan structure 26 Table 2.4: Overdue debt situation 28 Table 2.5: Analysis of overdue debt by type of loan 29 Table 2.6: Bad debt situation 30 Table 2.7: Situation of provision and use of provision at HDBank Ba Dinh Branch 31 Table 2.8: Proportion of dossiers collected by list of dossiers at HDBank Ba Dinh Branch 34 Table 2.9: Proportion of dossiers in unconformity with credit analysis in 36 period 2014 - 2016 36 Table 2.10: Dossiers rejected for credit grant in period 2014-2016 38 Table 4.1 Assessment about level of loan principle guarantee 47 Table 4.2 Assessment about strict coordination between divisions and 48 functional agencies 48 Table 4.3 Assessment about satisfaction of customers 49 Table 4.4 Assessment about application for credit grant 50 Table 4.5 Assessment about credit analysis 51 Table 4.6 Assessment about credit decision 52 Table 4.7 Survey result of disbursement, supervision and liquidation procedures 54 Table 5.1: Goals of HDBank Ba Dinh Branch by 2020 60 INTRODUCTION The importance of the research topic - Over the past years, along with the development of the market economy in general, the banking sector has also experienced rapid changes and development to meet the needs of the market in time - From the early 21st century, apart from the state banking system, a strong wave of non-state owned banks has arisen in the banking sector One of them is the HDBank As one of Top 10 joint stock commercial banks in Vietnam, which has been operating for more than 25 years in Vietnam and aims at reaching out to the world, HDBank has built strong financial capabilities and up-to-date technologies, offering a wide variety of financial services to retail customers, corporations and investors HDBank has completed the model of modern transaction points that provide professional and friendly customer services with the message of "Committed to your best returns" to customers and the social community - Like most other banks, HDBank's operations are mainly focused on mobilizing and lending capital, which bears a lot of pressure and risks In fact, the risks that most commercial banks have to face in credit activities are closely linked to the lack of connection between the stages of the loan process To ensure that there would be hardly risks in lending specific customers money, the bank or in this case, the employees directly dealing with the customers need to fully understand and properly implement every step of the credit appraisal process Therefore, the issue of finalizing the internal credit appraisal process is a priority to the commercial banks because it will increase the efficiency of credit management activities, prevent and limit credit risks, and maintain bad debts of the branch at a safe level in accordance with the regulations of HDBank and the State Bank - Being aware of this crucial issue and as a student who is currently working at HDBank Ba Dinh Branch Branch I have decided to select the research topic "Improvement of credit grant procedures at HDBank Ba Dinh Branch” Objectives of the research - Study the basic literature review on the credit appraisal process at HDBank Ba Dinh Branch; the credit appraisal process and the specific rules and regulations of the credit appraisal process Study the credit appraisal process at HDBank Ba Dinh Branch and other banks in Vietnam - Analyze and assess the status of the credit appraisal process at HDBank Ba Dinh Branch - Propose solutions to complete the credit appraisal process at HDBank Ba Dinh Branch - The research will assess both the achievements and the shortcomings of the system of credit appraisal at HDBank Ba Dinh Branch, based on which we propose solutions by applying the experience in applying credit procedures of other major banks in Vietnam and around the world Object and scope of the research A Object - The credit appraisal process at HDBank Ba Dinh Branch B Scope - Space: Focus on HDBank Ba Dinh Branch in comparative relationship with some joint stock commercial banks operating in Vietnam - Time: Data used for studying is from 2014 to 2016 Research questions The research aims to answer various questions as follows: - Can the literature review of the credit appraisal process at HDBank Ba Dinh Branch be systematized? - What lessons can be learned from the credit procedures of large banks in the country and other developed countries? - How to clarify the credit procedures at HDBank Ba Dinh Branch as well as evaluate the process and the results achieved in the past - What are the limitations of the process and their cause? - What are the solutions and directions to complete and improve the credit procedures at HDBank Ba Dinh Branch in the future? Research method approach - Case-studying to gain expertise knowledge on the research object according to the content and methods of credit procedures of some commercial banks in Vietnam - Analyzing data in quantitative method to clarify the actual status of the internal credit appraisal process - Make comparison based on common market valuation criteria for domestic and international credit appraisal process, then identify the problems and propose solutions to complete the credit procedures at HDBank Ba Dinh Branch - Data collection: Preliminary data (interviewing customer relationship specialists, interviewing specialists in the banking sector, sending questionnaires, etc.); secondary data (document collection and making comparison among the processes of commercial joint stock banks, collecting reports, analyzing financial statements, etc.) Structure of the research In addition to the introduction, conclusion, appendices and references, the research is structured in five chapters: Chapter 1: Fundamentals of credit procedures in commercial banks Chapter 2: Status of credit procedures at HDBank Ba Dinh Branch Chapter 3: Research method Chapter 4: Analysis of survey result Chapter 5: Solutions to improve credit procedures at HDBank Ba Dinh Branch CHAPTER 1: FUNDAMENTALS OF CREDIT PROCEDURES IN COMMERCIAL BANKS 1.1 The credit procedures of the borrower 1.1.1 Introduction of the credit procedures Credit includes both lending and borrowing relationships However, when credit is mentioned with certain entities, such as banks (or other intermediaries), such as bank credit, it is implied that the bank here is the entity that provides money for lending Such clarification is necessary to quantify credit in economic activities Bank credit is the transfer of rights to use the money from the bank to its customers for a certain period of time at a fixed cost The credit procedures is a synthesis of the rules and regulations of the bank in granting credit Specific steps and order are established, from the stage of application preparation until the termination of credit relations It is a process that requires the continuity of several stages in a certain order and at the same time, they are closely connected and intertwined In other words, the credit procedures is a summary of the bank's job description from the point it receives a loan application until it makes the final decision to lend, disburse, collect debt and liquidate the credit contract The credit procedure is multifaceted Thus, it is possible to divide the credit procedures into different stages Depending on the research approach, the credit procedures can be divided into different ways If the credit appraisal is considered the center of the process, then the process is divided into three phases: before, during and after credit appraisal Credit appraisal is seen as a particularly important business activity of the bank and a unified operation in which many people as well as the control systems of banks and regulatory authorities are involved Therefore, there is a second way to divide the credit procedures, which includes the following stages: credit application, credit analysis, credit decision, disbursement, and debt collection monitoring and credit liquidation The above classification facilitates clear identification of business operations at each stage and assigns responsibilities to employees According to the above steps, the interrelated stages support each other The results of the previous phase are the basis for the next stage and impact on the quality of work at the later stages The first phase creates the initial source of information for the customer’s transactions with the bank, forming the legal basis for credit relations The second phase is particularly important, because whether a customer or a loan application is properly assessed mostly depends on this stage However, the making decision stage plays the most crucial role in the credit procedures Accurate decision-making helps banks avoid uncertainties or unexpected losses occurring in the future The fourth stage can only be performed when the bank approves credit for the customer This is the stage that consists of a various business operations, and they are different from bank to bank At this stage, whether the implementation is synchronized and effective enough depends mostly on the results of the third stage and the managerial skills and the profession of the employees and the bank manager 1.1.2 The importance of understanding and complying with the credit procedures in the credit procedures In any business sector, there is always an old saying: “High risk, high return” Operating in the financial field with different rivals makes banks face many risks Therefore, commercial banks have no choice but to strictly control their performance, especially credit activities Completing the credit procedures is not only of great significance to the bank, but also brings benefits for customers and the entire national economy a) For banks Banks and financial institutions nowadays have set up credit procedures In general, the credit procedures of banks share the same basic content, but the details are quite different It depends on the size, credit structure, and staff Capacity, level of information technology application of the bank The completion of credit procedures will contribute to improve the efficiency of management activities in reducing risks and increasing profits For banks, the completion of a sound credit procedure bears the following meanings: - The credit procedures is the basis for developing an appropriate organizational structure at the bank In particular, the duties of the divisions and departments are clearly identified From there, the responsibilities are assigned to each position Human resources management at banks will be adjusted in time to achieve the highest work efficiency - The credit procedures is a mandatory business practice within the bank and printed in a handbook to guide the implementation of credit operations at the bank As a result, bankers know their positions and responsibilities to ensure, understand their relationships with other colleagues, or gain better insight about their roles throughout the process Hence, they can establish the right attitude toward their work, nurture close relationships and coordinate smoothly during the credit appraisal process - Based on the credit procedures, the bank will establish administrative procedures in accordance with the laws and ensure business security The design of lending procedures should be flexible for each group of customers, each type of loan or credit technology so that the bank can provide the necessary information, avoid troubles for customers and at the same time save as much time as possible for all parties As a result, the bank can keep close Table 5.1: Goals of HDBank Ba Dinh Branch by 2020 Target Year 2020 Rate of loan growth 18% - 20% Ratio of medium, long-term loans Preliminary assessment of the main contents of the project > Market Analysis and Product Consumption > Verification of the technical aspects of the project > Risk analysis and risk prevention measures of the project > Analysis of the financial aspects and effectiveness of the project > Determination for the loan amount and loan term - Verification of loan security assets The appraisal contents include: + Loan security measures Loans secured by assets (pledged assets, mortgaged assets, guarantee assets, assets formed from loan capital) should be examined and valuated for security assets as a basis for determining the loan amount Verification of security property: the status of the property (for example, the form of the external property is movable, the geographical location of the property is the real estate), the legal status of the mortgagor - It is thus possible to determine the potential advantages and risks of the asset to make a decision to receive or not receive the asset and to serve as the basis for the valuation of the collateral, the maximum loan amount calculated on the security asset value 5.2.2.4 Improvement for the efficiency of credit control operations The credit control to be emphasized here is post-lobed control with the purpose of ensuring that the loan is used for the right purpose as committed, controlling the credit risks, and timely detecting and correcting the mistakes with influence on ability to recover debt later, can be made periodically or irregularly for the loan Contents of the following controls: + Control is to assess the ability of the customer to ensure payment on time (through the monitoring of accounts in the working capital of customers ) + Regularly reassess the value of collateral assets Assurance can be said to be the "salvation" of the loan when customers are no longer able to repay The sale of collateral is for the Bank to recover the debt Actually, it can be said that this issue has not been paid much attention by credit officers Asset security can 65 fluctuate in value, especially movable assets such as machinery, vehicles due to objective or subjective conditions The Bank holds only the papers on assets while the use of assets is by customers The redefinition of the guaranteed assets needs to be emphasized frequently and must be put into practice in the lending process by creditors because of the volatility of the markets over time, especially in the real estate market, stock market as well as the development of technology, especially for invisible depreciation The assessment of the quality and condition of collateral should be focused For machinery, equipment, lines need to check the depreciation, quality For real estate, it is necessary to assess the market value of the property, the legal status of the guarantor Security assets in good management are gold, silver, precious metals, transport means, special-purpose road vehicles, machinery and equipment for production lines, goods, raw materials and materials Therefore, the monitoring of asset value changes will help staff to take necessary measures, credit officers can recover part of the debt corresponding to the value of the asset At the same time, through asset tracking, its unusual signs can be detected: the legal status of the mortgage guarantor, property status to take timely measures + Evaluate the customer's financial situation, look at the forecasts, assess the factors that increase and reduce the credit needs of customers This evaluation is done through examination of book vouchers, reports, market situation (consumer market and input supply ) + Check account activity of customers at banks Through this it is possible to assess the situation of business activities of customers to control the loan On the other hand, it is possible to check the flow of money in and out of customers, thereby limiting the misappropriation of capital, misuse of customer funds, limiting the risk that may occur due to the occupancy + Monitor customers by paying interest on a regular basis + Inspect production and business activities, check inventories, sale invoices, warehousing bills to ensure the proper use of loans, and appropriate schedule for loan period + Check the residence of the borrower In addition to the issues mentioned above regarding credit checks, one thing to keep in mind is that, in practice, the controller, director or deputy director rarely performs the actual assessment of the customer with cadre This work is mainly assigned to credit officers However, the control role of superiors is also very necessary Because, with the experience and knowledge for the safety of the loan may be improved, especially for large loans or 66 checks (financial situation, problematic options of loans, commodity with fluctuations in the market), the upper level also have to participate in control with the credit management 67 5.2.3 Group of solutions on the division and coordination between departments in the bank 5.2.3.1 Job assignment and clear responsibilities between divisions Separate sales functions, appraisal functions, credit risk management and debt management functions in credit operations In parallel, the functions, duties and responsibilities of the divisions must be clearly defined to avoid contradictions of risky interests Sales Division has the function of searching, contacting, initiating credit relations with customers After reviewing the dossiers in full, according to regulations, transfer the dossier to the appraisal division for examination of the customer and appraisal of collateral The appraisal division consists of the appraisal division for customer's eligibility, the financial position, the effectiveness of the loan plan, etc Credit risk management division makes the independent credit appraisal (re-appraisal), supervision of sales department performance and appraisal It is simultaneous for supervision for the borrowing process, repayment of the customer, creating a process of continuous inspection after the loan After reviewing the conditions of the loan customer, there will be a response to whether or not to agree to the loan The credit support division has the function of filing records, entering into the computers, monitoring and managing loans in accordance with regulations It is simultaneous for supervision of the borrowing process, repayment of the plan, and creation for a process of continuous inspection after the loan  To implement the above solutions to note the measures: In the early stages of transition, some of the personnel from the previous credit division will have to be transferred to the sales division Many employees are familiar with the old way of doing things, making it difficult to transform this new paradigm so they have to communicate their ideas to employees because they will affect their interests Sales should be trained professionally because this is the face of the bank It is ensured that all employees in movement to the new department must be adequately trained to meet current job requirements In addition, it is necessary to clearly define the responsibilities between the divisions to avoid fear of responsibility in the process of granting credit, affecting the operation of banks and customers 5.2.3.2 Enhancement for discussions between divisions and employees Each branch regularly hosts discussions so employees can present all their questions during the work process This discussion can be organized periodically every two months In 68 the discussion participation, there are staffs and leaders of the unit Form of discussion are to organize in groups and discuss each topic In it, the staff is central, having the right to make comments about the existence and the causes in the work Then the immediate problems that can be resolved immediately will be addressed directly by the branch manager, the problems that can not be resolved immediately will be discussed by employees to work out solutions 5.2.4 Group of support solutions 5.2.4.1 Improving quality of staff Improving the quality of staff is to improve the efficiency of banking operations in general and credit operations in particular in order to bring the best business results to the bank and minimize possible losses This is the most important solution in all groups of solutions given that human being is the key factor that will handle all stages from the issuance to the execution, so if the bank manages human factor, it is easy to grasp right from the input selection until the training, through the challenging phase until the official, in the process of updating the training, Follow up supervision will increase the capacity, as well as the morale of employees In this solution, it is necessary to pay attention to the following: - Improving the recruitment and assignment for staff This is an important input stage, so it is necessary to develop and disclose basic standards to recruit credit officers and supervisors, not only having knowledge of banking operations but also having social knowledge, legal knowledge and communication ability then, it is possible to recruit good employees who are capable of working At the same time, assigning staff to the positions in line with their capacity and qualification to maximize the efficiency of work Once the staff is recruited, the branch should have time of professional training for new staff after assessed as qualified, are permitted to credit work to reduce risks in lending activity of the bank - Improving awareness of seeking information related to credit The branch should ask credit officers to find out more customer information, socioeconomic information, market information and price in order to have knowledge to support lending activity (especially to find out in the credit information magazine; in fact, very few credit officers read these types of documents while they is very useful for lending activity) The information on this media is sometimes an important clue for credit officers to use in their lending activities Each officer needs to improve the accuracy of their operations, especially in their professional skills and their responsibilities in lending activity - Training and improving professional ethics for staff, well implementing the 69 "corporate culture standards" \ - Strengthening capacity of operational management by the Board of Managers Managers of the Branch or Vice Director must have good capacity of management, good human resource management and synthetic knowledge of banking operations Accordingly, the appointment for the right person to the right job is guaranteed to be well done Thanks to that, the credit management is carried out in accordance with regulations of the law and HDBank, coping with difficulties in lending activities Managers must also have good ethical behavior to ensure effective and secure credit operations Therefore, manager of the branch or Vice Director must improve their professional qualifications and accumulate their management experience by themselves in order to raise the efficiency of their business activities in general and credit activities in particular 5.2.4.2 Building the system of documents, regimes, regulations, procedures for credit grant One of the important causes of ineffective credit activity and credit risk is of the lending bank's subject matter in the development of the system of documents, regimes and procedures of loan lacking of synchronism and tightness In order for the credit procedures to operate in a synchronous and flexible manner, the bank should develop a comprehensive system of documents to create a corridor for credit activities: Building the regulation on credit grant of the bank on the basis of the regulation on credit grant of a credit situation for customers issued by State Bank of Vietnam Promulgating and guiding fully and promptly documents and regimes related to credit activities for uniform application in the whole system The system of documents, regimes and regulations related to credit activities must be thoroughly researched and trained so that every staff involved in credit activities must have solid knowledge in documents, regimes and execute fully and correctly Developing, regularly supplementing and improving the lending, guarantee procedures and other support procedures as required by the ISO quality management system Regularly reviewing the issued documents relating to credit activities to ensure the compliance in the promulgation of documents, the validity as well as the conformity of content between the documents coming in force 5.3 Recommendations 5.3.1 Recommendations to the Government The operation of commercial banks is heavily influenced by the legal documents and policies of the Government 70 Here are some recommendations to the government: - The Government should take measures to stabilize the socio-economic environment The stable socio-economic environment will create a favorable, healthy and safe business environment banks, creating confidence in the future for citizens, thus encouraging the development of business and production At present, the urgent issue for the government is the high price of commodities, which makes the quality of citizens declines Therefore, the stabilization of the socio-economic environment is an important issue for the government in the present period, in order to provide confidence to citizens and to the banks - The government should take measures to encourage the consumer goods industry to develop As the consumer goods industry develops, it will increase the supply of goods in the market, better meet the needs of citizens in the future Thereby, It also contributes to developing production, reducing the unemployment rate, increasing income for citizens, improving living standards and stimulating consumption, then credit activities of commercial joint stock banks have chance to develop - The Government should issue legal documents, create favorable environment to encourage and support the formation of private credit centers In fact, the unbalance of information is negatively affecting the operation of our financial market Credit Information Center (CIC) of the State Bank of Vietnam officially came into operation in 1999, through the collection and share of credit information among credit institutions that have actively contributed to improving credit operations towards safety - efficiency – sustainability and credit risk limit However, consumption credit is counting for a fast growth, with a rapidly increasing number of consumption borrowers, which makes CIC unable to serve Therefore, the introduction of private credit information centers is extremely necessary Private credit centers may not operate effectively without a legal framework to facilitate the operation of the credit market in general and of these centers in particular Therefore, the government should create a favorable environment for the private credit information center through the issuance and enforcement of legal documents, facilitating the share of credit information but still have to ensure the legitimate interests of the relevant customers, these documents are related to security in banks, data protection and consumer protection - The Government should issue legal documents on credit activities of commercial banks in order to create a strict legal corridor for banks to invest and develop consumption 71 loans At the same time, improve the system of laws and policies related to credit operations such as law on income tax, law on land 72 CONCLUSION In the context of the global economy encounters the current crisis, all sectors of the economy are affected to a certain extent The banking finance sector is the most affected sector, so it is important to understand market fluctuation and seek effective solutions to avoid difficulties and use capital efficiently and safely with a high growth rate Countries choose the path of a market economy, economic objects make a harsh competition for survival and development, and it requires not only the banking industry but also any business sector to focus on developing their products to achieve the best quality For banks, credit is a key revenue-generating product, so the need to scale up and improve their quality is a leading task in their development strategy Through the analysis of the topic "Improvement of credit procedures at HDBank Ba Dinh Branch", a part of which has clarified the importance of topic, as the role of credit procedures for commercial banks in general and HDBank Ba Dinh Branch in particular Thereby, solutions are suggested to improve credit procedures Based on the fundamental contents of the credit procedures at HDBank Ba Dinh Branch and in comparison with the research objectives, the thesis has achieved the following results: - Presenting a systematic overview of the basic theoretical issues about banking credit procedures - The thesis had in-depth analysis and assessment of status of credit procedures at HDBank Ba Dinh Branch On that basis, pointing out the existing limitations in the credit procedures and pointing out the causes of those limitations - Through the assessment of status of the credit procedures of the bank, the thesis proposed recommendations and some solutions to improve the credit procedures 73 LIST OF REFERENCES Atlman, 2003 The use of Credit scoring Models and the Importance of a Credit Culture New York University An explanatory note on the Basel II IRB risk weight functions, Basel Committee on Banking Supervision Arthur S.Goldberger: Economist ric Theory, John Wiley&Sons, Inc Joel Bessis, 2011 Risk management in banking – NXB Lao động xã hội Annual statement of Ho Chi Minh City Housing Development Commercial Joint Stock Bank – HDBank Instruction manual of scoring the internal credit rating system for corporate customer of Joint Stock Commercial Bank for Foreign Trade of Vietnam Regulations on loan by HDBank Internal document on audit activity for credit institutions E&Y Regulations on loan by BIDV 10 Regulations on loan by Vietinbank 11 Regulations on loan by Vietcombank 12 Tran Dac Sinh, 2002 Trust norm in Vietnam 13 Website http://en.wikipedia.org 14 Website of the State Bank of Vietnam http://www.sbv.gov.vn 15 Website of Vietnam Audit Magazine http://kiemtoan.com.vn 16 Website http://www.HDBank.com.vn/ 17 Website http://www.Cafef.vn/ 74 ... about credit procedures of HDBank 32 2.2.1 Credit procedures of HDBank 32 2.2.2 Steps of credit procedures at HDBank 33 2.3 Comparison of credit procedures of HDBank. .. SOLUTIONS TO IMPROVE CREDIT PROCEDURES AT HDBANK BA DINH BRANCH 59 5.1 Development objective of HDBank Ba Dinh Branch 59 5.1.1 General objective of HDBank Ba Dinh Branch up to 2020... working at HDBank Ba Dinh Branch Branch I have decided to select the research topic "Improvement of credit grant procedures at HDBank Ba Dinh Branch? ?? Objectives of the research - Study the basic