Vietinbank

Topics: Bank, Debt, Credit rating Pages: 14 (3525 words) Published: March 26, 2014

THANKFUL
To complete this research report, I want to give the sincere thankful to the teacher in Faculty of Banking and Finance of Industrial university of Ho Chi Minh City to create a change to me complete my training in during the time I study at class to the time I traing at Vietinbank Mien Trung agency. Specially, I want to give the sincere thankful to Miss. Nguyen Thi My Linh who always side by side and clear up and helping me complete my training. Thank to credit officer of the credit department at Vietinbank Mien Trung agency always introduce me during the time I training. Because my knowledge is limits so that I can not avoid the mistake, so that I want to hope the teacher will receive the opinion of the lecturer aim to my report is perfectly. Finally I wish the teacher in Faculty of Banking and Finance always have a good health, believe to can introduce and continuosly teach to next generations. Sincerely

Ho Chi Minh city, March in 2014
Student Signature

To Ngoc Thanh Phong
COMMENTS OF VIETINBANK MIEN TRUNG AGENCY

Ho Chi Minh city, ......, March , 2014
COMMENTS OF LECTURER

Ho Chi Minh city, ......, March , 2014
Signature

COMMENTS OF THE PRESENTATION LECTURER

Ho Chi Minh city, ......, March , 2014
Signature

CONTENTS
LIST OF TABLES, PICTURES AND CHARTS06
ABBREVIATION07
ABSTRACT08
Chapter 1: LITERATURE REVIEW AND CONCERN PROBLEMS09
1.1. Overview bad debt and credit risk09
1.1.1. Bad debt and credit risk11
1.1.2. Consequences of bad debt for the banks’ operations12 1.1.3. The bad debt situation in Vietnam13
1.1.4. Bad debt rate controlling suggestion for the Vietnamese banking system16 1.2. Credit risk management19
1.2.1. Credit analysis20
1.2.2. Credit policies and strategies22
1.2.3. Lending guidelines24
Chapter 2: ACTUAL SITUATION OF CREDIT RISK MANAGEMENT AND BAD DEBT CONTROLLING AT VIETINBANK MIEN TRUNG AGENCY25 2.1. Historical founded and development25
2.2. Credit risk of Vietinbank26
2.3. Vietinbank’s risk management27
2.3.1. Lending procedure27
2.3.2. Loan-loss provision30
2.3.3. Collections Department32
2.4. Vietinbank’s credit risk management structure35
2.4.1. Audit Department and Double-check system36
2.5. Credit practices and performance38
2.5.1. Compliance with the State Bank of Vietnam’s policies38 2.5.2. Compliance with the bank policies39
2.5.3. Credit performance statistics40
Chapter 3: CONCLUSION AND RECOMMENDATIONS42
3.1. Conclusion42
3.2. Recommendations44
SUMMARY45
APPENDICES47
LIST OF TABLES AND FIGURES.
LIST OF FIGURES

FIGURE 1. The bad debt rate of Vietnamese banks (Thanh 2012) FIGURE 2. The KAMCO’s role in bad debt settlement in Korea (Hung 2012) FIGURE 3. Credit analysis process (Caouette, Altman, Narayanan & Nimmo 2008, 108) FIGURE 4. The lending procedure of Vietinbank (Adapted from interview with Mr. Y, Assessment staff) FIGURE 5.The Collections Department’s structure at Vietinbank (adapted from the interviews with Ms. K, Collections Department) FIGURE 6. Basic structure of Vietinbank (Adapted from Vietinbank homepage)

LIST OF TABLES

TABLE 1. Percentage of banks’ total assets compared to the whole banking system (Adapted from SBV’s Report No. 49/BC – NHNN, 2010) TABLE 2. Class of debts (Adapted from SBV’s Decision No. 493/2005/QD- NHNN) TABLE 3. The four biggest state-owned banks bad debt situation until 31 December 2012 (Na 2013) TABLE 4. Banking products and services of Vietinbank (Adapted from Vietinbank’s home page) TABLE 5. The loan-loss provision ratio for the classes of debt (Adapted from Circular No. 02/2013/TT-NHNN) TABLE 6. Credit performance statistics (Adapted from the interview with Mr. Q)...
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