Luận văn studying the quality of the fund mobilization activities at commercial bank of vietnam lang son

Capital plays a very important role in banking operations, Initial capital is th= condition for a bank 4o be permiited to conduct its business in accordance with the law, In addition, mo

UNIVERSITE DE NANTES

Cohort 2015 — 2017

MASTER’S THESIS

STUDYING THE QUALITY OF THE FUND MOBILIZATION ACTIVITIES AT

COMMERCIAL BANK OF VIETNAM- LANG SON

AUTHOR: LAI VAN TOAN SUPERVISOR: Dr PHAM THI LIEN

Hanoi, June 2017

ACKNOWLEDGEMENT

declare that this master’s thesis is my own research and the data and the material used

im this thesis have cleat sources and references to all the sourecs 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 theiz supporting,

First, I would like to express my endless thanks and gratefiilness to my supervisor Dr Pham Thi Lien Ter kindly support and continuous advices went through the process of

completion of my thesis Without his assistance, the thesis would have been done effectively

Sơ far, Twould 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 achisve knowledge and experience

My special thanks to all staffs and management's branch of Vietinbank- Tang Son

‘branch; for their kind z

the research,

ances and support in providing me data and advices lo complete

Finally, 1 would like to express my special thanks to my parents for their endless love

and motivation

“Thank you!

CHAPTER 1: THEORETICAL BASIS FOR FOR FUND MOBILIZATION

1.2 Basic operations of commercial banks - od 1.1.1 Mobilization of firnd activitdes „4

1.2.2 Size of mobilized capIfal se nhe Ổ

1.2.4 Cost of fand mobilization e ceecces 8

2.1.2 Business performance of VietinbankLang Son - co AS

2.2 Fund raising in Vietinbank Lang §on - -Ö-22

2.3 Assessing the quality of fund mobilization of Vietinbank Lang Son 28

INTRODUCTION

1 The necessity ani} meaning of the research thesis,

Commercial banks we a financial intermediary In cach country, Gnancial intermediaries are divided differently However, there is always a common point that the role

of commercial banks and the contribution of assets and importance to the economy With that role, the profit is first clement for Commercial banks and only tool that helps commercial banks get profit is capital

It can be said that the banking and financial market in Vietnam has been strongly fluctuated by the establishment and development of domestic and foreign banking

organizations Il is the rapid de stern thal, makes business

bank more difficult and flerce competition Capital is one of the key factors that determine the competitivensss of the banks The fact has shown that the capital size, professional skills and

lopriont of the bariking s

modem technical means are prerequisites for altracting capital, and large capital sources will create favorable conditions for banks to expand their ctedit relations with other banks and economic composition in terms of size, volume of credit, initiative in terms of time and inlarest The result of increasing is to help mullifimetional banks in the markel, disperse tisk,

‘As a branch, based on the development orientation of the system as well as the annual business plan assigned, the Lang Son branch - Visinam Joint Stock Commercial Bank for Industry and Trade has devcloped a business plan (or implementation Good business tisk, In particular, the mobilization of capital for the next stage is necessary for Vietinbank Lang Son

in the area to survive and devetop in accordance with the strategy and direction of the system

Coming from the practice of the branch combining with the knowledge leamed in the training program Mastor of Finance — Ranking - Insurmes (Soulhoast Asia), combining between the International School - VNU and the University of Nantes, I would like to select

INTRODUCTION

1 The necessity ani} meaning of the research thesis,

Commercial banks we a financial intermediary In cach country, Gnancial intermediaries are divided differently However, there is always a common point that the role

of commercial banks and the contribution of assets and importance to the economy With that role, the profit is first clement for Commercial banks and only tool that helps commercial banks get profit is capital

It can be said that the banking and financial market in Vietnam has been strongly fluctuated by the establishment and development of domestic and foreign banking

organizations Il is the rapid de stern thal, makes business

bank more difficult and flerce competition Capital is one of the key factors that determine the competitivensss of the banks The fact has shown that the capital size, professional skills and

lopriont of the bariking s

modem technical means are prerequisites for altracting capital, and large capital sources will create favorable conditions for banks to expand their ctedit relations with other banks and economic composition in terms of size, volume of credit, initiative in terms of time and inlarest The result of increasing is to help mullifimetional banks in the markel, disperse tisk,

‘As a branch, based on the development orientation of the system as well as the annual business plan assigned, the Lang Son branch - Visinam Joint Stock Commercial Bank for Industry and Trade has devcloped a business plan (or implementation Good business tisk, In particular, the mobilization of capital for the next stage is necessary for Vietinbank Lang Son

in the area to survive and devetop in accordance with the strategy and direction of the system

Coming from the practice of the branch combining with the knowledge leamed in the training program Mastor of Finance — Ranking - Insurmes (Soulhoast Asia), combining between the International School - VNU and the University of Nantes, I would like to select

Tablc 23 — | Balance of funds in 2015 -2016

Table 24 — | Growth rate and Joan structure of Vietinbank Lang Son in the period 2013 - 2016

Table 2.5 | Overdne debt and overdue debt ratio at Vietinbank Lang Son in the period 2013 -2016

Table 2.6 | Imemational Payment Sales in the periad 2013 - 2016

Table 2.7 Data on the share of deposits by cumency

Table2.8 | The average mobilizing interest rate of Vietinbank Lang Son in the period 2013 -2016

‘able 2.9 | ‘rhe average lending interes! tale of VieGinbank Lang Som in Lhe period 2013 -2016

Table 2.10 — | Difference in imesest rates on Jouns and deposils

Table 2.11 | Relationship between fund mobilization and lending of Vietinhank Tang Son

LIST OF FIGURES

Kigure2.1 | fund growth of Vietinbank Lang Son in the period 2013-2016

Figure 2.2 | Scale of capital mobilized by customers

Figure 2.3 | Mobilized fimd according to the deposit period 2013-2016

Figure 24 | Vietinbank Lang, Son's fiund mobilization in 2016

Tablc 23 — | Balance of funds in 2015 -2016

Table 24 — | Growth rate and Joan structure of Vietinbank Lang Son in the period 2013 - 2016

Table 2.5 | Overdne debt and overdue debt ratio at Vietinbank Lang Son in the period 2013 -2016

Table 2.6 | Imemational Payment Sales in the periad 2013 - 2016

Table 2.7 Data on the share of deposits by cumency

Table2.8 | The average mobilizing interest rate of Vietinbank Lang Son in the period 2013 -2016

‘able 2.9 | ‘rhe average lending interes! tale of VieGinbank Lang Som in Lhe period 2013 -2016

Table 2.10 — | Difference in imesest rates on Jouns and deposils

Table 2.11 | Relationship between fund mobilization and lending of Vietinhank Tang Son

LIST OF FIGURES

Kigure2.1 | fund growth of Vietinbank Lang Son in the period 2013-2016

Figure 2.2 | Scale of capital mobilized by customers

Figure 2.3 | Mobilized fimd according to the deposit period 2013-2016

Figure 24 | Vietinbank Lang, Son's fiund mobilization in 2016

Tablc 23 — | Balance of funds in 2015 -2016

Table 24 — | Growth rate and Joan structure of Vietinbank Lang Son in the period 2013 - 2016

Table 2.5 | Overdne debt and overdue debt ratio at Vietinbank Lang Son in the period 2013 -2016

Table 2.6 | Imemational Payment Sales in the periad 2013 - 2016

Table 2.7 Data on the share of deposits by cumency

Table2.8 | The average mobilizing interest rate of Vietinbank Lang Son in the period 2013 -2016

‘able 2.9 | ‘rhe average lending interes! tale of VieGinbank Lang Som in Lhe period 2013 -2016

Table 2.10 — | Difference in imesest rates on Jouns and deposils

Table 2.11 | Relationship between fund mobilization and lending of Vietinhank Tang Son

LIST OF FIGURES

Kigure2.1 | fund growth of Vietinbank Lang Son in the period 2013-2016

Figure 2.2 | Scale of capital mobilized by customers

Figure 2.3 | Mobilized fimd according to the deposit period 2013-2016

Figure 24 | Vietinbank Lang, Son's fiund mobilization in 2016

CHAPTER 1: THEORETICAL BASIS FOR FOR FUND MOBILIZATION

ACTIVITIES OR COMMERCIAL BANKS

1 The concept of commercial banks

1.1 What is a commercial bank?

A commercial bank is an economic organization that conducts banking activities in the axcas of monctary supply, financial scrvices between customers and banks, or viec versa,

According to the Law on Credit Institutions: commercial banks are credit mstitutions

which are entitled 1o cary oul all banking activities and other related business activilies for profit purposes in accordance with the Law on Credit Institutions Use and other provisions of the law (Decree No 59/2009 / ND-CP of the Government on the organization and operation of commercial banks)

1.2 Basic aperations of commercial hanks

Banking activities such as mobilizing capital, lending, discounting, guaranteeing, providing financial services and other related activities

1.1.1, Mobilization of fund activities

‘The business activities of any enterprises must have capital With commercial banks the capilal 1s the cnlire monetary resources that banks ereale, mobilize to Tend, invest and execute

‘banking scrviccs Capital plays a very important role in banking operations, Initial capital is th= condition for a bank 4o be permiited to conduct its business in accordance with the law, In addition, mobilized capital sources allow the bank lo source loans, invest in valuable papers, assets and loans for economic development activities of the country,

Capital of commercial banks includes: equity, fund mobilized and loans, Capital is the capilal mobilized from banks and econornic organizations In addition, during the operation, the bank also borrowed capital trom the State Bank or other credit institutions to ensure liquidity

In order to have capital for business activities, commercial banks must mobilize capital Fund mobilization of commercial banks és the use of specific tools, methods, methods and programs

to alfraet the attention of individuals and organizations, and from there ta deposit moncy inlo banks

As a financial intermediary of the economy, find mobilization plays a very important role for both commercial banks, depositors and the cconomy Forms of fund mobilization of commercial banks include: fund mobilizing ftom deposits of economic organizations and individuals throughout the counby (including demand deposits, savings deposits, isrm daposiis

INTRODUCTION

1 The necessity ani} meaning of the research thesis,

Commercial banks we a financial intermediary In cach country, Gnancial intermediaries are divided differently However, there is always a common point that the role

of commercial banks and the contribution of assets and importance to the economy With that role, the profit is first clement for Commercial banks and only tool that helps commercial banks get profit is capital

It can be said that the banking and financial market in Vietnam has been strongly fluctuated by the establishment and development of domestic and foreign banking

organizations Il is the rapid de stern thal, makes business

bank more difficult and flerce competition Capital is one of the key factors that determine the competitivensss of the banks The fact has shown that the capital size, professional skills and

lopriont of the bariking s

modem technical means are prerequisites for altracting capital, and large capital sources will create favorable conditions for banks to expand their ctedit relations with other banks and economic composition in terms of size, volume of credit, initiative in terms of time and inlarest The result of increasing is to help mullifimetional banks in the markel, disperse tisk,

‘As a branch, based on the development orientation of the system as well as the annual business plan assigned, the Lang Son branch - Visinam Joint Stock Commercial Bank for Industry and Trade has devcloped a business plan (or implementation Good business tisk, In particular, the mobilization of capital for the next stage is necessary for Vietinbank Lang Son

in the area to survive and devetop in accordance with the strategy and direction of the system

Coming from the practice of the branch combining with the knowledge leamed in the training program Mastor of Finance — Ranking - Insurmes (Soulhoast Asia), combining between the International School - VNU and the University of Nantes, I would like to select

2.3.1 Result - —-.- Chapter II: Proposton of soluttons to improve the quality of capital Mobilization of

4.1 Development orientation and orienfation of fund mobilization strategy of Vietinbank

3.2 Solutions to improve the quality of fand mobilization at Victinbank Lang Son 38

3.2.3 Recommendations to improve the quality of fund mobilization

CHAPTER 1: THEORETICAL BASIS FOR FOR FUND MOBILIZATION

ACTIVITIES OR COMMERCIAL BANKS

1 The concept of commercial banks

1.1 What is a commercial bank?

A commercial bank is an economic organization that conducts banking activities in the axcas of monctary supply, financial scrvices between customers and banks, or viec versa,

According to the Law on Credit Institutions: commercial banks are credit mstitutions

which are entitled 1o cary oul all banking activities and other related business activilies for profit purposes in accordance with the Law on Credit Institutions Use and other provisions of the law (Decree No 59/2009 / ND-CP of the Government on the organization and operation of commercial banks)

1.2 Basic aperations of commercial hanks

Banking activities such as mobilizing capital, lending, discounting, guaranteeing, providing financial services and other related activities

1.1.1, Mobilization of fund activities

‘The business activities of any enterprises must have capital With commercial banks the capilal 1s the cnlire monetary resources that banks ereale, mobilize to Tend, invest and execute

‘banking scrviccs Capital plays a very important role in banking operations, Initial capital is th= condition for a bank 4o be permiited to conduct its business in accordance with the law, In addition, mobilized capital sources allow the bank lo source loans, invest in valuable papers, assets and loans for economic development activities of the country,

Capital of commercial banks includes: equity, fund mobilized and loans, Capital is the capilal mobilized from banks and econornic organizations In addition, during the operation, the bank also borrowed capital trom the State Bank or other credit institutions to ensure liquidity

In order to have capital for business activities, commercial banks must mobilize capital Fund mobilization of commercial banks és the use of specific tools, methods, methods and programs

to alfraet the attention of individuals and organizations, and from there ta deposit moncy inlo banks

As a financial intermediary of the economy, find mobilization plays a very important role for both commercial banks, depositors and the cconomy Forms of fund mobilization of commercial banks include: fund mobilizing ftom deposits of economic organizations and individuals throughout the counby (including demand deposits, savings deposits, isrm daposiis

2.3.1 Result - —-.- Chapter II: Proposton of soluttons to improve the quality of capital Mobilization of

4.1 Development orientation and orienfation of fund mobilization strategy of Vietinbank

3.2 Solutions to improve the quality of fand mobilization at Victinbank Lang Son 38

3.2.3 Recommendations to improve the quality of fund mobilization

5, Significance of the study

*Applied knowledge is leamed to have the zight solution to increase the amount of capital through fund mobilization activities such as deposil, loan and alher operations (trusl service, Intermediary payment ) for Vietinbank Lang Son

«Analyzing and selecting suitable solutions for Vietinbank Lang Son to exploit maximum strength, take advantage of markct opportunitics (focus resources, the best opportunity) in the capital mobilization,

« Areference situation for other studies

6.Limitationsof the study

‘rhe topic focused on find mobilizing at Vietinbank Lang Son; Draw conclusions as well as selective solutions for applying to Vietinbank Lang Son only

7, The structure ofthe study

Introduction

Chapler |: Theoritical basic (or find mobitization activities for commercial banks

Chapter II: Assessment of the quality of fand mobilization activities of Vietinbank Lang Son Chapter IIl-Proposing the solutions to improve the quality of fimd mobilization of Vietinbank

Lang Som

ths topie "Studying the quality of fimd mobilization activities at Vietnam Joint Stock Comercial Bank for Industry and Trade- Lang Son branch" (shorted: Vietinbank Lang Son)

"for my graduation thesis

2, Objectives of the study

‘This is an important task to contribute to the development of the strategy for Vietinbank Tang Son

Objective 1: Theoretical framework on fund mobilization of commercial banks

Objective 2- Assessing the quality of fund mobilivalion activities of Vielinbankk Lang

3, Methodology of the study

© Qualitative mathod for case stutly of Vietinbank Tang Son

~ Data: Primary and secondary (from other sources such as journals, banking statements,

statistical roport, internet .}

* Method for data collection: Mainly collecting secondary data for research purposes The data is used in the research process such as annual reports, financial statements and

‘business sifnation review report of the year 2013, 2014, 2015 and 2016 of Victinbank Lang Son

+ Data analysis: After collecting data were researched and analyzed, The results of the analysis will be used to assess the quality of fund mobilization, professionalism of fund mobilization officers, possibilities and opportunities of market access of staff to fund mobilization activities Vietinbank Lang SonOn the basis of the information obtained from the financial reports, the business plan of Victinbank Lang Son with the competitors in the area

4 Scope of the study

‘Thesis focuses on the analysis of fund mobilization situation of Vietinbank Lang Son from 2013 back, so il cam cvaluate the quality of fund mobilization al the branch

ths topie "Studying the quality of fimd mobilization activities at Vietnam Joint Stock Comercial Bank for Industry and Trade- Lang Son branch" (shorted: Vietinbank Lang Son)

"for my graduation thesis

2, Objectives of the study

‘This is an important task to contribute to the development of the strategy for Vietinbank Tang Son

Objective 1: Theoretical framework on fund mobilization of commercial banks

Objective 2- Assessing the quality of fund mobilivalion activities of Vielinbankk Lang

3, Methodology of the study

© Qualitative mathod for case stutly of Vietinbank Tang Son

~ Data: Primary and secondary (from other sources such as journals, banking statements,

statistical roport, internet .}

* Method for data collection: Mainly collecting secondary data for research purposes The data is used in the research process such as annual reports, financial statements and

‘business sifnation review report of the year 2013, 2014, 2015 and 2016 of Victinbank Lang Son

+ Data analysis: After collecting data were researched and analyzed, The results of the analysis will be used to assess the quality of fund mobilization, professionalism of fund mobilization officers, possibilities and opportunities of market access of staff to fund mobilization activities Vietinbank Lang SonOn the basis of the information obtained from the financial reports, the business plan of Victinbank Lang Son with the competitors in the area

4 Scope of the study

‘Thesis focuses on the analysis of fund mobilization situation of Vietinbank Lang Son from 2013 back, so il cam cvaluate the quality of fund mobilization al the branch

ths topie "Studying the quality of fimd mobilization activities at Vietnam Joint Stock Comercial Bank for Industry and Trade- Lang Son branch" (shorted: Vietinbank Lang Son)

"for my graduation thesis

2, Objectives of the study

‘This is an important task to contribute to the development of the strategy for Vietinbank Tang Son

Objective 1: Theoretical framework on fund mobilization of commercial banks

Objective 2- Assessing the quality of fund mobilivalion activities of Vielinbankk Lang

3, Methodology of the study

© Qualitative mathod for case stutly of Vietinbank Tang Son

~ Data: Primary and secondary (from other sources such as journals, banking statements,

statistical roport, internet .}

* Method for data collection: Mainly collecting secondary data for research purposes The data is used in the research process such as annual reports, financial statements and

‘business sifnation review report of the year 2013, 2014, 2015 and 2016 of Victinbank Lang Son

+ Data analysis: After collecting data were researched and analyzed, The results of the analysis will be used to assess the quality of fund mobilization, professionalism of fund mobilization officers, possibilities and opportunities of market access of staff to fund mobilization activities Vietinbank Lang SonOn the basis of the information obtained from the financial reports, the business plan of Victinbank Lang Son with the competitors in the area

4 Scope of the study

‘Thesis focuses on the analysis of fund mobilization situation of Vietinbank Lang Son from 2013 back, so il cam cvaluate the quality of fund mobilization al the branch

5, Significance of the study

*Applied knowledge is leamed to have the zight solution to increase the amount of capital through fund mobilization activities such as deposil, loan and alher operations (trusl service, Intermediary payment ) for Vietinbank Lang Son

«Analyzing and selecting suitable solutions for Vietinbank Lang Son to exploit maximum strength, take advantage of markct opportunitics (focus resources, the best opportunity) in the capital mobilization,

« Areference situation for other studies

6.Limitationsof the study

‘rhe topic focused on find mobilizing at Vietinbank Lang Son; Draw conclusions as well as selective solutions for applying to Vietinbank Lang Son only

7, The structure ofthe study

Introduction

Chapler |: Theoritical basic (or find mobitization activities for commercial banks

Chapter II: Assessment of the quality of fand mobilization activities of Vietinbank Lang Son Chapter IIl-Proposing the solutions to improve the quality of fimd mobilization of Vietinbank

Lang Som

Tablc 23 — | Balance of funds in 2015 -2016

Table 24 — | Growth rate and Joan structure of Vietinbank Lang Son in the period 2013 - 2016

Table 2.5 | Overdne debt and overdue debt ratio at Vietinbank Lang Son in the period 2013 -2016

Table 2.6 | Imemational Payment Sales in the periad 2013 - 2016

Table 2.7 Data on the share of deposits by cumency

Table2.8 | The average mobilizing interest rate of Vietinbank Lang Son in the period 2013 -2016

‘able 2.9 | ‘rhe average lending interes! tale of VieGinbank Lang Som in Lhe period 2013 -2016

Table 2.10 — | Difference in imesest rates on Jouns and deposils

Table 2.11 | Relationship between fund mobilization and lending of Vietinhank Tang Son

LIST OF FIGURES

Kigure2.1 | fund growth of Vietinbank Lang Son in the period 2013-2016

Figure 2.2 | Scale of capital mobilized by customers

Figure 2.3 | Mobilized fimd according to the deposit period 2013-2016

Figure 24 | Vietinbank Lang, Son's fiund mobilization in 2016

2.3.1 Result - —-.- Chapter II: Proposton of soluttons to improve the quality of capital Mobilization of

4.1 Development orientation and orienfation of fund mobilization strategy of Vietinbank

3.2 Solutions to improve the quality of fand mobilization at Victinbank Lang Son 38

3.2.3 Recommendations to improve the quality of fund mobilization

Mobilizing capital through the issuance of valuable papers, borrowing from other credit institutions, borrowing from the central bank, Capital of commercial banks includes Equity and Debt Capital

* Lqutty: Equity accounts for a small share of the bank's total capital, but equity is a legal requirement when starting a bank On the other hand, equity is also considered as a security assct, which creates confidcnec among customers, maintaining solvency in the casc of bank losses,

* Debt capital and debt mobilization operations: Commercial banks as a major part of the intermediary financial system, receiving idle money or issuing debt instruments such as

certificates of deposit, Vote to attract idle capital in the economy Debt capital includes:

~ Deposit and daposil mobilization: Deposi

commercial banks, Typically, this source accounts tor more than 50% of total bank oparating

s from customers are important, sources of

capital Based on the purpose of the deposit, can be classified into three types of deposits as belows

+ Deposit payment (deposit transactions); Thesc are deposits of businesses or individuals deposited in a bank for banks and payment hold status when required Within the allowable balance, the needs of the business and individnal are taken into account by the bank, Interest rates on these deposits are very low but account holders can cnjoy low-cost banking scrviccs

= Tenor deposits of enterprises, organizations and social enterprises and social onganivations to send a certain amoont with a malurily and will be paid afler a specified time

+ Savings deposits of the population: Al classes of people have unused lemporary

savings (savings), which can be deposited in savings accounts in order to achieve the objectives

of preservation and profitability 1lis savings Unlike payment deposits, saving deposits are

more slable, bul higher mobilization and management cosls,

- Deposits ftom banks, financial institutions, other credit; The commercial banks can deposit money at the bank for the purpose of payment of households

- Loans and borrowing activilics of commercial banks: These arc fonncd on capital borrowed relations between commercial banks with the Central Bank or the State with other

credit institutions

1.1.2, Lending activity

Lending is a major activity of commercial banks to finance capital for businesses, individuals and organizations Loans usually account for a large proportion of total assets and provide a major source of income far the bank, medium and long ler

2.3.1 Result - —-.- Chapter II: Proposton of soluttons to improve the quality of capital Mobilization of

4.1 Development orientation and orienfation of fund mobilization strategy of Vietinbank

3.2 Solutions to improve the quality of fand mobilization at Victinbank Lang Son 38

3.2.3 Recommendations to improve the quality of fund mobilization

ths topie "Studying the quality of fimd mobilization activities at Vietnam Joint Stock Comercial Bank for Industry and Trade- Lang Son branch" (shorted: Vietinbank Lang Son)

"for my graduation thesis

2, Objectives of the study

‘This is an important task to contribute to the development of the strategy for Vietinbank Tang Son

Objective 1: Theoretical framework on fund mobilization of commercial banks

Objective 2- Assessing the quality of fund mobilivalion activities of Vielinbankk Lang

3, Methodology of the study

© Qualitative mathod for case stutly of Vietinbank Tang Son

~ Data: Primary and secondary (from other sources such as journals, banking statements,

statistical roport, internet .}

* Method for data collection: Mainly collecting secondary data for research purposes The data is used in the research process such as annual reports, financial statements and

‘business sifnation review report of the year 2013, 2014, 2015 and 2016 of Victinbank Lang Son

+ Data analysis: After collecting data were researched and analyzed, The results of the analysis will be used to assess the quality of fund mobilization, professionalism of fund mobilization officers, possibilities and opportunities of market access of staff to fund mobilization activities Vietinbank Lang SonOn the basis of the information obtained from the financial reports, the business plan of Victinbank Lang Son with the competitors in the area

4 Scope of the study

‘Thesis focuses on the analysis of fund mobilization situation of Vietinbank Lang Son from 2013 back, so il cam cvaluate the quality of fund mobilization al the branch

Tablc 23 — | Balance of funds in 2015 -2016

Table 24 — | Growth rate and Joan structure of Vietinbank Lang Son in the period 2013 - 2016

Table 2.5 | Overdne debt and overdue debt ratio at Vietinbank Lang Son in the period 2013 -2016

Table 2.6 | Imemational Payment Sales in the periad 2013 - 2016

Table 2.7 Data on the share of deposits by cumency

Table2.8 | The average mobilizing interest rate of Vietinbank Lang Son in the period 2013 -2016

‘able 2.9 | ‘rhe average lending interes! tale of VieGinbank Lang Som in Lhe period 2013 -2016

Table 2.10 — | Difference in imesest rates on Jouns and deposils

Table 2.11 | Relationship between fund mobilization and lending of Vietinhank Tang Son

LIST OF FIGURES

Kigure2.1 | fund growth of Vietinbank Lang Son in the period 2013-2016

Figure 2.2 | Scale of capital mobilized by customers

Figure 2.3 | Mobilized fimd according to the deposit period 2013-2016

Figure 24 | Vietinbank Lang, Son's fiund mobilization in 2016

Mobilizing capital through the issuance of valuable papers, borrowing from other credit institutions, borrowing from the central bank, Capital of commercial banks includes Equity and Debt Capital

* Lqutty: Equity accounts for a small share of the bank's total capital, but equity is a legal requirement when starting a bank On the other hand, equity is also considered as a security assct, which creates confidcnec among customers, maintaining solvency in the casc of bank losses,

* Debt capital and debt mobilization operations: Commercial banks as a major part of the intermediary financial system, receiving idle money or issuing debt instruments such as

certificates of deposit, Vote to attract idle capital in the economy Debt capital includes:

~ Deposit and daposil mobilization: Deposi

commercial banks, Typically, this source accounts tor more than 50% of total bank oparating

s from customers are important, sources of

capital Based on the purpose of the deposit, can be classified into three types of deposits as belows

+ Deposit payment (deposit transactions); Thesc are deposits of businesses or individuals deposited in a bank for banks and payment hold status when required Within the allowable balance, the needs of the business and individnal are taken into account by the bank, Interest rates on these deposits are very low but account holders can cnjoy low-cost banking scrviccs

= Tenor deposits of enterprises, organizations and social enterprises and social onganivations to send a certain amoont with a malurily and will be paid afler a specified time

+ Savings deposits of the population: Al classes of people have unused lemporary

savings (savings), which can be deposited in savings accounts in order to achieve the objectives

of preservation and profitability 1lis savings Unlike payment deposits, saving deposits are

more slable, bul higher mobilization and management cosls,

- Deposits ftom banks, financial institutions, other credit; The commercial banks can deposit money at the bank for the purpose of payment of households

- Loans and borrowing activilics of commercial banks: These arc fonncd on capital borrowed relations between commercial banks with the Central Bank or the State with other

credit institutions

1.1.2, Lending activity

Lending is a major activity of commercial banks to finance capital for businesses, individuals and organizations Loans usually account for a large proportion of total assets and provide a major source of income far the bank, medium and long ler

Tablc 23 — | Balance of funds in 2015 -2016

Table 24 — | Growth rate and Joan structure of Vietinbank Lang Son in the period 2013 - 2016

Table 2.5 | Overdne debt and overdue debt ratio at Vietinbank Lang Son in the period 2013 -2016

Table 2.6 | Imemational Payment Sales in the periad 2013 - 2016

Table 2.7 Data on the share of deposits by cumency

Table2.8 | The average mobilizing interest rate of Vietinbank Lang Son in the period 2013 -2016

‘able 2.9 | ‘rhe average lending interes! tale of VieGinbank Lang Som in Lhe period 2013 -2016

Table 2.10 — | Difference in imesest rates on Jouns and deposils

Table 2.11 | Relationship between fund mobilization and lending of Vietinhank Tang Son

LIST OF FIGURES

Kigure2.1 | fund growth of Vietinbank Lang Son in the period 2013-2016

Figure 2.2 | Scale of capital mobilized by customers

Figure 2.3 | Mobilized fimd according to the deposit period 2013-2016

Figure 24 | Vietinbank Lang, Son's fiund mobilization in 2016

ths topie "Studying the quality of fimd mobilization activities at Vietnam Joint Stock Comercial Bank for Industry and Trade- Lang Son branch" (shorted: Vietinbank Lang Son)

"for my graduation thesis

2, Objectives of the study

‘This is an important task to contribute to the development of the strategy for Vietinbank Tang Son

Objective 1: Theoretical framework on fund mobilization of commercial banks

Objective 2- Assessing the quality of fund mobilivalion activities of Vielinbankk Lang

3, Methodology of the study

© Qualitative mathod for case stutly of Vietinbank Tang Son

~ Data: Primary and secondary (from other sources such as journals, banking statements,

statistical roport, internet .}

* Method for data collection: Mainly collecting secondary data for research purposes The data is used in the research process such as annual reports, financial statements and

‘business sifnation review report of the year 2013, 2014, 2015 and 2016 of Victinbank Lang Son

+ Data analysis: After collecting data were researched and analyzed, The results of the analysis will be used to assess the quality of fund mobilization, professionalism of fund mobilization officers, possibilities and opportunities of market access of staff to fund mobilization activities Vietinbank Lang SonOn the basis of the information obtained from the financial reports, the business plan of Victinbank Lang Son with the competitors in the area

4 Scope of the study

‘Thesis focuses on the analysis of fund mobilization situation of Vietinbank Lang Son from 2013 back, so il cam cvaluate the quality of fund mobilization al the branch

Mobilizing capital through the issuance of valuable papers, borrowing from other credit institutions, borrowing from the central bank, Capital of commercial banks includes Equity and Debt Capital

* Lqutty: Equity accounts for a small share of the bank's total capital, but equity is a legal requirement when starting a bank On the other hand, equity is also considered as a security assct, which creates confidcnec among customers, maintaining solvency in the casc of bank losses,

* Debt capital and debt mobilization operations: Commercial banks as a major part of the intermediary financial system, receiving idle money or issuing debt instruments such as

certificates of deposit, Vote to attract idle capital in the economy Debt capital includes:

~ Deposit and daposil mobilization: Deposi

commercial banks, Typically, this source accounts tor more than 50% of total bank oparating

s from customers are important, sources of

capital Based on the purpose of the deposit, can be classified into three types of deposits as belows

+ Deposit payment (deposit transactions); Thesc are deposits of businesses or individuals deposited in a bank for banks and payment hold status when required Within the allowable balance, the needs of the business and individnal are taken into account by the bank, Interest rates on these deposits are very low but account holders can cnjoy low-cost banking scrviccs

= Tenor deposits of enterprises, organizations and social enterprises and social onganivations to send a certain amoont with a malurily and will be paid afler a specified time

+ Savings deposits of the population: Al classes of people have unused lemporary

savings (savings), which can be deposited in savings accounts in order to achieve the objectives

of preservation and profitability 1lis savings Unlike payment deposits, saving deposits are

more slable, bul higher mobilization and management cosls,

- Deposits ftom banks, financial institutions, other credit; The commercial banks can deposit money at the bank for the purpose of payment of households

- Loans and borrowing activilics of commercial banks: These arc fonncd on capital borrowed relations between commercial banks with the Central Bank or the State with other

credit institutions

1.1.2, Lending activity

Lending is a major activity of commercial banks to finance capital for businesses, individuals and organizations Loans usually account for a large proportion of total assets and provide a major source of income far the bank, medium and long ler

Mobilizing capital through the issuance of valuable papers, borrowing from other credit institutions, borrowing from the central bank, Capital of commercial banks includes Equity and Debt Capital

* Lqutty: Equity accounts for a small share of the bank's total capital, but equity is a legal requirement when starting a bank On the other hand, equity is also considered as a security assct, which creates confidcnec among customers, maintaining solvency in the casc of bank losses,

* Debt capital and debt mobilization operations: Commercial banks as a major part of the intermediary financial system, receiving idle money or issuing debt instruments such as

certificates of deposit, Vote to attract idle capital in the economy Debt capital includes:

~ Deposit and daposil mobilization: Deposi

commercial banks, Typically, this source accounts tor more than 50% of total bank oparating

s from customers are important, sources of

capital Based on the purpose of the deposit, can be classified into three types of deposits as belows

+ Deposit payment (deposit transactions); Thesc are deposits of businesses or individuals deposited in a bank for banks and payment hold status when required Within the allowable balance, the needs of the business and individnal are taken into account by the bank, Interest rates on these deposits are very low but account holders can cnjoy low-cost banking scrviccs

= Tenor deposits of enterprises, organizations and social enterprises and social onganivations to send a certain amoont with a malurily and will be paid afler a specified time

+ Savings deposits of the population: Al classes of people have unused lemporary

savings (savings), which can be deposited in savings accounts in order to achieve the objectives

of preservation and profitability 1lis savings Unlike payment deposits, saving deposits are

more slable, bul higher mobilization and management cosls,

- Deposits ftom banks, financial institutions, other credit; The commercial banks can deposit money at the bank for the purpose of payment of households

- Loans and borrowing activilics of commercial banks: These arc fonncd on capital borrowed relations between commercial banks with the Central Bank or the State with other

credit institutions

1.1.2, Lending activity

Lending is a major activity of commercial banks to finance capital for businesses, individuals and organizations Loans usually account for a large proportion of total assets and provide a major source of income far the bank, medium and long ler

2.3.1 Result - —-.- Chapter II: Proposton of soluttons to improve the quality of capital Mobilization of

4.1 Development orientation and orienfation of fund mobilization strategy of Vietinbank

3.2 Solutions to improve the quality of fand mobilization at Victinbank Lang Son 38

3.2.3 Recommendations to improve the quality of fund mobilization

2.3.1 Result - —-.- Chapter II: Proposton of soluttons to improve the quality of capital Mobilization of

4.1 Development orientation and orienfation of fund mobilization strategy of Vietinbank

3.2 Solutions to improve the quality of fand mobilization at Victinbank Lang Son 38

3.2.3 Recommendations to improve the quality of fund mobilization

5, Significance of the study

*Applied knowledge is leamed to have the zight solution to increase the amount of capital through fund mobilization activities such as deposil, loan and alher operations (trusl service, Intermediary payment ) for Vietinbank Lang Son

«Analyzing and selecting suitable solutions for Vietinbank Lang Son to exploit maximum strength, take advantage of markct opportunitics (focus resources, the best opportunity) in the capital mobilization,

« Areference situation for other studies

6.Limitationsof the study

‘rhe topic focused on find mobilizing at Vietinbank Lang Son; Draw conclusions as well as selective solutions for applying to Vietinbank Lang Son only

7, The structure ofthe study

Introduction

Chapler |: Theoritical basic (or find mobitization activities for commercial banks

Chapter II: Assessment of the quality of fand mobilization activities of Vietinbank Lang Son Chapter IIl-Proposing the solutions to improve the quality of fimd mobilization of Vietinbank

Lang Som

5, Significance of the study

*Applied knowledge is leamed to have the zight solution to increase the amount of capital through fund mobilization activities such as deposil, loan and alher operations (trusl service, Intermediary payment ) for Vietinbank Lang Son

«Analyzing and selecting suitable solutions for Vietinbank Lang Son to exploit maximum strength, take advantage of markct opportunitics (focus resources, the best opportunity) in the capital mobilization,

« Areference situation for other studies

6.Limitationsof the study

‘rhe topic focused on find mobilizing at Vietinbank Lang Son; Draw conclusions as well as selective solutions for applying to Vietinbank Lang Son only

7, The structure ofthe study

Introduction

Chapler |: Theoritical basic (or find mobitization activities for commercial banks

Chapter II: Assessment of the quality of fand mobilization activities of Vietinbank Lang Son Chapter IIl-Proposing the solutions to improve the quality of fimd mobilization of Vietinbank

Lang Som

INTRODUCTION

1 The necessity ani} meaning of the research thesis,

Commercial banks we a financial intermediary In cach country, Gnancial intermediaries are divided differently However, there is always a common point that the role

of commercial banks and the contribution of assets and importance to the economy With that role, the profit is first clement for Commercial banks and only tool that helps commercial banks get profit is capital

It can be said that the banking and financial market in Vietnam has been strongly fluctuated by the establishment and development of domestic and foreign banking

organizations Il is the rapid de stern thal, makes business

bank more difficult and flerce competition Capital is one of the key factors that determine the competitivensss of the banks The fact has shown that the capital size, professional skills and

lopriont of the bariking s

modem technical means are prerequisites for altracting capital, and large capital sources will create favorable conditions for banks to expand their ctedit relations with other banks and economic composition in terms of size, volume of credit, initiative in terms of time and inlarest The result of increasing is to help mullifimetional banks in the markel, disperse tisk,

‘As a branch, based on the development orientation of the system as well as the annual business plan assigned, the Lang Son branch - Visinam Joint Stock Commercial Bank for Industry and Trade has devcloped a business plan (or implementation Good business tisk, In particular, the mobilization of capital for the next stage is necessary for Vietinbank Lang Son

in the area to survive and devetop in accordance with the strategy and direction of the system

Coming from the practice of the branch combining with the knowledge leamed in the training program Mastor of Finance — Ranking - Insurmes (Soulhoast Asia), combining between the International School - VNU and the University of Nantes, I would like to select

2.3.1 Result - —-.- Chapter II: Proposton of soluttons to improve the quality of capital Mobilization of

4.1 Development orientation and orienfation of fund mobilization strategy of Vietinbank

3.2 Solutions to improve the quality of fand mobilization at Victinbank Lang Son 38

3.2.3 Recommendations to improve the quality of fund mobilization

2.3.1 Result - —-.- Chapter II: Proposton of soluttons to improve the quality of capital Mobilization of

4.1 Development orientation and orienfation of fund mobilization strategy of Vietinbank

3.2 Solutions to improve the quality of fand mobilization at Victinbank Lang Son 38

3.2.3 Recommendations to improve the quality of fund mobilization

Mobilizing capital through the issuance of valuable papers, borrowing from other credit institutions, borrowing from the central bank, Capital of commercial banks includes Equity and Debt Capital

* Lqutty: Equity accounts for a small share of the bank's total capital, but equity is a legal requirement when starting a bank On the other hand, equity is also considered as a security assct, which creates confidcnec among customers, maintaining solvency in the casc of bank losses,

* Debt capital and debt mobilization operations: Commercial banks as a major part of the intermediary financial system, receiving idle money or issuing debt instruments such as

certificates of deposit, Vote to attract idle capital in the economy Debt capital includes:

~ Deposit and daposil mobilization: Deposi

commercial banks, Typically, this source accounts tor more than 50% of total bank oparating

s from customers are important, sources of

capital Based on the purpose of the deposit, can be classified into three types of deposits as belows

+ Deposit payment (deposit transactions); Thesc are deposits of businesses or individuals deposited in a bank for banks and payment hold status when required Within the allowable balance, the needs of the business and individnal are taken into account by the bank, Interest rates on these deposits are very low but account holders can cnjoy low-cost banking scrviccs

= Tenor deposits of enterprises, organizations and social enterprises and social onganivations to send a certain amoont with a malurily and will be paid afler a specified time

+ Savings deposits of the population: Al classes of people have unused lemporary

savings (savings), which can be deposited in savings accounts in order to achieve the objectives

of preservation and profitability 1lis savings Unlike payment deposits, saving deposits are

more slable, bul higher mobilization and management cosls,

- Deposits ftom banks, financial institutions, other credit; The commercial banks can deposit money at the bank for the purpose of payment of households

- Loans and borrowing activilics of commercial banks: These arc fonncd on capital borrowed relations between commercial banks with the Central Bank or the State with other

credit institutions

1.1.2, Lending activity

Lending is a major activity of commercial banks to finance capital for businesses, individuals and organizations Loans usually account for a large proportion of total assets and provide a major source of income far the bank, medium and long ler