Main tasks of international payments and support credit department at orient commercial joint stock bank bach dang transaction office

HO CHI MINH CITY BANKING UNIVERSITY DEPARTMENT OF FOREIGN LANGUAGES Internship Report on MAIN TASKS OF INTERNATIONAL PAYMENTS AND SUPPORT CREDIT DEPARTMENT at ORIENT COMMERCIAL JOINT STOCK BANK Bach D[.]

HO CHI MINH CITY BANKING UNIVERSITYDEPARTMENT OF FOREIGN LANGUAGES

Internship Report 

on

MAIN TASKS OF INTERNATIONAL PAYMENTS AND

SUPPORT CREDIT DEPARTMENT

at

ORIENT COMMERCIAL JOINT STOCK BANK

Bach Dang transaction office

ACKNOWLEDGMENT

First of all, I would like to send my profound gratitude to Banking University of Ho Chi Minh city for providing useful environment with so much practical knowledge and many outdoor activities for us By participating in FIC Entrepreneurship Club, I have a great opportunity to learn various soft skills and improve my English skills.

In addition, I wish to express my sincere thank to all of the lectures in Foreign Language department for their helpful lesson in class Specially thankful to my supervisor – Master

Vo Thanh Tuan – a teacher of Foreign Language department for his conscientious and dedicated instruction, his kindly support helps me complete my internship course and internship report properly.

Moreover, I would like to give my greatest appreciation to Orient Commercial Joint Stock Bank (OCB) – Bach Dang transaction office, the manager and all of the staffs, for offering me the best condition to work here From the bottom of my heart, I wish my deepest thanks to my supervisor – Ms Vu Thi Minh Trang Without her support, I could not go through the completion of internship period Her advices are very helpful for me

to develop myself.

Last but not least, I wish an honest gratitude to my beloved family and my friends, those who always stand by me and help me overcome many difficult moments in life Also, I would like to thank my dear sister for her encouragement and inspiration during the course of my academic career.

XÁC NHẬN VÀ ĐÁNH GIÁ CỦA ĐƠN VỊ THỰC TẬP

………

………

………

………

………

………

………

………

………

………

………

………

………

………

………

………

TP Hồ Chí Minh, ngày …… tháng …… năm ……

Đơn vị thực tập (Ký tên & đóng dấu)

Phần đánh giá của Giảng viên hướng dẫn

STT Nội dung đánh giá Điểm Nhận xét

1 Tinh thần, thái độ làm việc tại Cơ quanthực tập (dựa trên cơ sở đánh giá của

cơ đơn vị thực tập) /2.0

2 thực hiện các yêu cầu chuyên môn theoMức độ chấp hành nội quy thực tập và

hướng dẫn của Giảng viên hướng dẫn /2.0

3 Chất lượng báo cáo thực tập

● Những kinh nghiệm

đã tích lũy được

● Các đóng góp của bảnthân cho cơ quan vàcác sáng kiến, đề xuấtgiải pháp (nếu có)

/2.0

Giảng viên chấm

Phần đánh giá của Giảng viên chấm 2

STT Nội dung đánh giá Điểm Nhận xét

1 Tinh thần, thái độ làm việc tại Cơ quanthực tập (dựa trên cơ sở đánh giá của

cơ đơn vị thực tập) /2.0

2 thực hiện các yêu cầu chuyên môn theoMức độ chấp hành nội quy thực tập và

hướng dẫn của Giảng viên hướng dẫn /2.0

3 Chất lượng báo cáo thực tập

● Những kinh nghiệm

đã tích lũy được

● Các đóng góp của bảnthân cho cơ quan vàcác sáng kiến, đề xuấtgiải pháp (nếu có)

/2.0

Giảng viên chấm

2 ASSIGNED TASKS AND METHODS OF IMPLEMENTATION DURING

2.1 Learning about the international payment activities of OCB 13

2.1.1 Assigned tasks of international payment 13 2.1.2 Letter of credit (L/C) 13 2.1.3 International money transfers 14

2.2 Supporting about the credit department activities of OCB 14

2.2.1 Learning about the main types of loans in OCB 14 2.2.2 Assisting credit profile and translation of some contract documents 15

2.3.1 Photocopy, scan and imprint the documents 16 2.3.2 Check the documents 16

3.1 Knowledge achievement in the internship 16

3.2.2 Communication skills 17 3.2.3 Time management skills 17 3.2.4 Attention to detail 18

3.3 Experiences during the internship 18

3.3.1 Critical thinking skills 18 3.3.2 Adaptation to new working environment 18

1 Introduction of Orient Commercial Joint Stock Bank

1.1 Overview of OCB

- Date of established: June 10, 1996

- Registered name: Orient Commercial Joint Stock Bank

- Trading name: OCB

- Head office: 41-45 Le Duan, Ben Nghe Ward, District 1, Ho Chi Minh

● OCB is one of the first banks in Vietnam to complete the risk management projectitems under Basel II international standards in 2017 and was recognized by theState Bank in December 2018.

● On July 2, 2019, OCB was rated by Moody's Investors Service, which one of thethree most prestigious credit rating organizations in the world, increasing therating of counterparty risk assessment (CRA-counterparty risk assessment) andrisk rating counterparty risk (CRR-counterparty risk ratings) to Ba3, this is thehighest ranking in Vietnam today

● In 2019, OCB continues to be awarded by two IFM magazines two major awards

in the field of finance and banking, respectively Most Innovative Digital BankingSolution and Fastest Growing Digital Bank - Vietnam 2019

● OCB is one of three financial and banking organizations in Vietnam receiving the

"Asia-Pacific Excellent Enterprise" award at the Asia Pacific EntrepreneurshipAwards 2019 (APEA) The award from APEA is a recognition of OCB'soutstanding business capabilities in the finance and banking industry in Vietnamand is the motivation for OCB to continue to bring trust and prosperity tocustomers

1.2 Overview of Bach Dang Transaction Office

1.2.1 Introduction

Bach Dang Transaction Office is one of the transaction offices of OCB This transactionoffice deals with every activity as its branches With the goal of increasing profit, theoffice has promoted in mobilizing savings deposit from individuals and granting loans for

individuals who need money for business demands or cost living payments in short,medium or long-term.

▪ Contact information

Address: 246B-246E Bach Dang Street, Ward 24, Binh Thanh District, Ho Chi Minh CityTel: 028 3511 7816 Fax: 028 3511 7816

1.2.2 Products and Services

Personal banking products:

Corporate banking products:

- Deposit and account management: OCB will help you maximize profit from youridle capital through an extensive network Including: collection service, custom dutypayment, automatic payment, fast E-Bank – Internet banking for businesses, local taxcollection, online tax collection, electricity bill payment service, payment service, payrollservice, fax/email-based transaction service, smart money deposit, term deposit

- Corporate financing: Getting ahead in your business with our wide range of creditproducts and steady source of capital

- Trade finance and guarantees: OCB offers a comprehensive range of solutions topromote and support your trading activities, fulfill domestic and international paymentneeds

- Foreign exchange and capital trade.

- New products and promotions

1.2.3 Organization system

InternationalPayment

AdministrativeDepartment

Creditofficer

Creditofficer

Creditofficer

CreditDepartmentDirector

CustomerServiceStaff

RetailBankingOfficer

CustomerRelationshipDirector

SurveyorTeller

2 ASSIGNED TASKS AND METHODS OF IMPLEMENTATION DURING INTERNSHIP AT OCB BACH DANG

2.1 Learning about the international payment activities of OCB

2.1.1 Assigned tasks of international payment

For me, the internship at OCB Bach Dang transaction is not only a good chance tobecome familiar with the business environment of the workplace but also help meunderstand and practice the theories learned at school The reason I applied for theprogram can be summed up with the word “experience.” In my internship period, Ihad a practical look about banking activities through tasks allocated

I was instructed in terms of international payment, related activities when makingcredit reports and loan documents for customers in the first working week at OCB –Bach Dang Transaction Office Thus, I have a chance to understand clearly about theprocess of import and export payment based on letter of credit (L/C), internationalmoney transfers and the process of granting credit to customers at banks

The customers must reach those following requires:

▪ Having legal status following the law ofVietnam

▪ Having certificate of business registration (onlyfor new customers)

▪ Having import and export business codenumbers(only for new customers)

▪ Having bank accounts at OCB

▪ Application for buying foreign currencies

▪ Having foreign trade contract

▪ Having import license from Ministry of Industryand Trade or other relevant competentorganization

▪ Insurance policy (depending on price conditions)

2 Open L/C There are two kinds of L/C in OCB included

deferred L/C and Upas L/C The deferred letter ofcredit, stipulating the payment in lump sum orinstallments for sellers This payment will be madeafter a certain time from the date of delivery or thedate of presentation of the document The upas letter

of credit is just the opposite of revocable letter ofcredit

3 Receive and check the

documents ▪ Drafts▪ Invoice (proforma invoice, provisional invoice,

final invoice, detail invoice)

▪ Marine/Bill of lading (straight bill of lading, toorder bill of lading, to bearer bill of lading, cleanbill of lading, unclean bill of lading, through bill

of lading, direct bill of lading)

▪ Individuals sending money outward for legitimate purposes: study abroad, medical treatment or for family members livingabroad, sending money to overseas, overseas business trips, immigration, payment for fees and charges incurred abroad.Receive money

via Western ▪ Customer can receive in VND or USD.

Union online ▪ No tax income applied.

▪ No limit number of transactions/amounts

Multiple currency

fund transfer

▪ Fund transfer can be made in 130 different currencies

▪ Attractive exchange rate

▪ Competitive tariff

▪ Simple and quick procedures

▪ Free consultancy

2.2 Supporting about the credit department activities of OCB

2.2.1 Learning about the main types of loans in OCB

Loan Topup ▪ Only for customers who have mortgages at OCB

▪ Loan documents need:

- List of goods purchased

Loan For Real

Estate ▪ Vietnamese citizens from full 22 to 55 years old.▪ Identity card/ Family register/ Temporary Residence Card.

▪ Loan application form and proposal (OCB form)

▪ Documents proving the source of the customer's income

▪ Documents related to real estate trading (Sales contract, )

▪ Papers relating to collateral

Car Loan ▪ Identity card;

▪ Family register;

▪ Loan application form and proposal (OCB form);

▪ Sales contract / Purchase invoice/Motorbike registration certificate

▪ Documents about collaterals (if collaterals are different fromvehicles purchased)

Consumption

Loan ▪ Mode of repayment:- Installment installments monthly / quarterly or at the end

of the period (only applicable to income from productionand business activities and the loan period from under 12months)

- Interest paid monthly according to reducing balance

▪ Identity card/ Family register/ Temporary Residence Card;

▪ Loan application form and proposal (OCB form)

▪ Documents proving Customer's source of income

▪ Documents proving the purpose of the client's capital use

▪ Papers related to special assets are real estate, cars

2.2.2 Assisting credit profile and translation of some contract documents

After learning and being instructed in some international payment operations, I wasinstructed on the knowledge and skills of the credit department Here, I supportedhim/her to make price surveys of collaterals of customers at the bank Additionally, I waslearnt how to calculate customers' principal and interest in the debt printing table at thebeginning of the afternoon Moreover, my English skills are improved through thetranslation of documents of rental contracts or real estate to help clients of creditdepartment staff In addition to the bank internships, I was taken to the field by creditofficers through customer meetings to get information and share some of my experiencewith the credit department

2.3 Methods of implementation

2.3.1 Photocopy, scan and imprint the documents

I start my works as supporting the office in photocopying and scanning the documentsincluding certificates, B/L files and more document By the way, I keep contact withother departments such as transaction office, administrative office,credit department tocollect the certificates, records, file with the purpose of storage and using asdocumentation for the next transactions in the future

Apart from photocopying and scanning, I also support the manager in imprinting thedocuments which had been checked by the manager before, which helps the transactions

at international payments office running more smoother and faster

2.3.2 Check the documents

My duty is checking the adequacy and regularity of documentation First, I instruct the customer what they need to do if they would like to pay their import’s invoice by L/C The customer must prove their capital to ensure that they have ability to pay the invoice And then, they will fill fully into the opening L/C application form

After the bank have accepted opening L/C require form their customers, I will check theirfile to ensure all of these components are valid The file/document includes: License for establishment of company, business registration certificate, foreign trade contract, licensefor importing goods given by Ministry of Commercial, quota certificate, license for importing and exporting code registration given by maritime authorities… (Depending onwhat type of L/C is, deferred L/C and Upas L/C, there are different features in detail.)

3 Knowledge and experienced achievement

3.1 Knowledge achievement in the internship

The time of internship at OCB Bach Dang gave me a great chance to consolidate myknowledge I have learnt Business English, especially English for Banking and Finance

so I took advantage of this to complete my tasks such as check the documents andtranslated some documents for credit department In addition, the internship at OCB Bachdang enables me to have specialist knowledge of Banking through reading manydocuments to understand processes and regulations clearly and practical activities Iknown about drafts, bill of exchange, letter of credit, promissory note, etc I could differbetween these types and deeply understand the benefits of them Moreover, I learnt moreinformation about loans when I supported at Credit Department For instance, I knownmore about the terms of a loan through reading documents, learnt about how to makeappraisals, property mortgage receipts, business statements and how to analyze acompany's financial statements

3.2 Skills in internship

3.2.1 Computer skill

My implementation was about translating some real estate lease contracts and somedocument when I supported credit department Therefore, I improved my Word, Excelskill by myself throughout searching from Google or learning from instruction by mybuddy I can use a variation of formulas and functions in Excel or typing a text in Wordfaster and more correctly By the way, I was trained in the way of writing an emailprofessionally

3.2.2 Communication skills

Communication skills are the ability to communicate effectively with superiors,colleagues, and staff is essential, no matter what industry you work in It cannot bedenied that everyone needs communication skills not only for their job, but also for theireveryday life I am an active person so I rarely get trouble in communicating But I mustadmit that communicating with superiors is very difficult, especially when collectingdocuments or asking for their help Additionally, I not only listened to their issues, thenguided them or escalated to the corresponding division for solving the problems but alsonoted their suggestions, opinions and sometimes their constructive criticisms and usedtheir ideas Thank to this practical cases after finishing the 3-month internship course,Ihave improved tremendously my communication skills in a business environment

3.2.3 Time management skills

With the multiple tasks in a day, time management is one of the most significant skillsthat I have to gain I evaluated each task and time to complete it Then I arranged whichone would be done first and try to finish the task before deadline

3.2.4 Attention to detail

Bankers must be very careful in number because they have to deal witha range ofnumbers every day Checking documents at international payment office and supportingcredit department helps me be more meticulous and cautious

3.3 Experiences during the internship