I. OVERVIEW OF EXIMBANK 3 1. History of establishment and development: 3 2. General business activities: 3 II. EXIMBANK’S SOURCES OF FUND 5 1. Deposit sources of funds 5 1.1 Products 5 1.2 Values of deposit source of fund 11 1.3 Methods of raising capital 16 2. Nondeposit sources of funds 16 2.1 Due to Government and borrowings from the State Bank of Vietnam 18 2.2 Borrowings from other credit institutions 18 2.3 Valuable papers issued 18 3. Eximbank’s capital 19 3.1 General 19 3.2 Values 19 4 Methods of raising capital: 20 III. CAPACITY DEVELOPMENT OF EXIM BANK FUNDS 21 1. Major factors affecting capitalcreating activities of Exim Bank 21 1.1. The external factors 21 1.2. The elements of the bank 22 2. Plan for capital growth of Exim Bank 24 2.1. Updating technology innovation in banking: 25 2.2. Development of diversified forms of raising capital (deposits) 25 2.3. Regular training to improve the professional qualifications of staff bank 26 2.4. Build brand image and Exim Bank 26 2.5. Maximize the convenience for customers. 26 2.6. Apply a flexible interest rate policy 26 2.7. Enhance service quality improvement and advertising information 27 IV. RECOMMENDATION FOR EXIMBANK 27 3 I. OVERVIEW OF EXIMBANK 1. History of establishment and development: Established on May 24, 1989 under the decision No. 140CT signed by the Chairman of the Council of Ministers under the name of VIETNAM EXPORT IMPORT BANK and being one of the first jointstock commercial banks of Vietnam, VIETNAM EXPORT IMPORT BANK officially came into operation on January 17, 1990. On April 6, 1992, under license No. 11NHGP signed by the Governor of the State Bank of Vietnam, the Bank was allowed to operate with a term of 50 years and its charter capital registered at VND50 billion (equivalent to USD12.5 million) and its name changed to VIETNAM EXPORT IMPORT COMMERCIAL JOINTSTOCK BANK (shortly called VIETNAM EXIMBANK). At present, Exim bank’s chartered capital is VND 8,800 billion. The bank’s owner’s equity is VND 13,627 billion, making it one of the largest commercial jointstock banks by owner’s equity. Vietnam Export Import Commercial Joint Stock Bank has a nationwide network with its Head Office located in Ho Chi Minh City and 124 Branches in Ha Noi, Da Nang, Nha Trang, Can Tho City, Quang Ngai, Vinh, Hai Phong city, Quang Ninh, Dong Nai, Binh Duong, Tien Giang, An Giang, Ba Ria Vung Tau, Dac Lac, Lam Dong and Ho Chi Minh city). VIETNAM EXIMBANK has established correspondent banking relationship with over 735 banks in 72 countries worldwide. 2. General business activities: Exim bank provides a full range of services as an international bank: Mobilizing, savings deposits, demand deposits from individuals and entities in VND, foreign currencies, and gold. Customers39; deposits are insured as per the State stipulations. Providing short, medium and long term loans, syndicated loans, overdraft loans, consuming loans, and credit limits in VND, foreign currencies, and gold with favorable conditions and simple formalities. Foreign exchange trading by SPOT, SWAP, FORWARD, and Currency Option. 4 Settling, financing exportimport activities, and negotiating export documents. Various forms of settlements by LC, DA, DP, TT, PO, cheque are handled safely and quickly via SWIFT at reasonable fee. Issuing and settling domestic and international credit cards such as EXIMBANK MasterCard, EXIMBANK Visa card, EXIMBANK card; acquiring VISA, MasterCard, and JCB, etc., making payment online by cards. Providing cash services such as salary payment, collection, onsite collection and payment, foreign exchange, domestic and overseas remittance. Issuing Bank Guarantee in favor of domestic clients and clients abroad (payment guarantee, tax payment guarantee, performance bond, bid bond, offering, warranty bond, advance payment bond, etc.
Trang 1State Bank of Vietnam Banking Academy *
EXIMBANK AND EVALUATING CAPACITY AND
DEVELOPMENT OF BANK FUND
SUBJECT: COMMERCIAL BANKING LECTURER: PHAM THU THUY GROUP: EXIMBANK
1. LÊ THỊ THANH HUYỀN
2. NGUYỄN THỊ HẢI YẾN
4. BÙI HUỆ LAM
TÔ THỊ HUYỀN TRANG
Trang 2I OVERVIEW OF EXIMBANK
1 History of establishment and development:
Established on May 24, 1989 under the decision No 140/CT signed by the Chairman
of the Council of Ministers under the name of VIETNAM EXPORT IMPORT BANK and being one of the first joint-stock commercial banks of Vietnam, VIETNAM EXPORT IMPORT BANK officially came into operation on January 17, 1990 On April 6, 1992, under license No 11/NH-GP signed by the Governor of the State Bank
of Vietnam, the Bank was allowed to operate with a term of 50 years and its charter capital registered at VND50 billion (equivalent to USD12.5 million) and its name changed to VIETNAM EXPORT IMPORT COMMERCIAL JOINT-STOCK BANK (shortly called VIETNAM EXIMBANK) At present, Exim bank’s chartered capital is VND 8,800 billion The bank’s owner’s equity is VND 13,627 billion, making it one
of the largest commercial joint-stock banks by owner’s equity Vietnam Export Import Commercial Joint Stock Bank has a nationwide network with its Head Office located
in Ho Chi Minh City and 124 Branches in Ha Noi, Da Nang, Nha Trang, Can Tho City, Quang Ngai, Vinh, Hai Phong city, Quang Ninh, Dong Nai, Binh Duong, Tien Giang, An Giang, Ba Ria - Vung Tau, Dac Lac, Lam Dong and Ho Chi Minh city) VIETNAM EXIMBANK has established correspondent banking relationship with over 735 banks in 72 countries worldwide
2 General business activities:
Exim bank provides a full range of services as an international bank:
- Mobilizing, savings deposits, demand deposits from individuals and entities in VND, foreign currencies, and gold Customers' deposits are insured as per the State stipulations
Trang 3- Providing short, medium and long term loans, syndicated loans, overdraft loans, consuming loans, and credit limits in VND, foreign currencies, and gold with favorable conditions and simple formalities.
- Foreign exchange trading by SPOT, SWAP, FORWARD, and Currency Option
- Settling, financing export-import activities, and negotiating export documents Various forms of settlements by L/C, D/A, D/P, T/T, P/O, cheque are handled safely and quickly via SWIFT at reasonable fee
- Issuing and settling domestic and international credit cards such as EXIMBANK MasterCard, EXIMBANK Visa card, EXIMBANK card; acquiring VISA, MasterCard, and JCB, etc., making payment online by cards
- Providing cash services such as salary payment, collection, on-site collection and payment, foreign exchange, domestic and overseas remittance
- Issuing Bank Guarantee in favor of domestic clients and clients abroad (payment guarantee, tax payment guarantee, performance bond, bid bond, offering, warranty bond, advance payment bond, etc
Trang 4II EXIMBANK’S SOURCES OF FUND
1 Deposit sources of funds
1.1 Products
Exim bank provides two main kinds of deposit which are transaction deposits and non-transaction deposits from 2012 to now In demand deposit, E-Favor deposit and demand savings deposit are the main products whilst non-transaction deposit includes a number of deposit accounts; Time savings deposit, Online savings,
Deposit with interest rate based on actual deposit time, Salary Accumulation Savings Deposit, Overnight savings deposit, “Call” 48 hours deposit, Mixed savings deposit (Suspended) Time savings deposit with flexible fund withdrawal (Suspended)
a. Transaction deposit
Demand savings deposit
In this kind of deposit, Eximbank receives customers’ demand savings deposit
in VND and USD During Eximbank’s working hours, customers can come to deposit, withdraw at any time In addition, customers also obtain many benefits from this account; for examples they can use savings books can be used at any branches/transaction offices of Eximbank countrywide, and also use to confirm customers’ financial capability to travel or study abroad, etc, use as pledge, guarantee to request for bank loans and deposit for international credit card issuance Furthermore, clients also receive automatically interest merge in its term There is no limitation on the deposit amount and transaction time The minimum deposit is VND100,000 or USD$50 The interest will be paid on 24th
every month with 0.3 % annual interest rate
E-Favor deposit
E- Favor deposit is VND demand deposit account for individuals and business households maintaining average account balance of from 20 million dong and upwards during the month, and is entitled to enjoy certain preferences It is a kind
of demand payment deposit which customers can deposit and withdraw to make payment anytime
Customers participating “E-Favor Deposit” are entitled to the following service
Trang 5Fee waiver for domestic fund transfer:
Firstly, customers will be waived the all domestic fund transfer fees upon
transferring money from “E-Favor Deposit” account via Internet Banking or
Mobile Banking Secondly, domestic fund transfer fee for fund transfer
transactions made from “E-Favor Deposit” account executed at counters Lastly,
tallying fee will not be waived in case of cash withdrawal or fund transfer within
2 working days from the date of cash deposit into the “E-Favor Deposit” account
Fee waiver for inherent services:
Customers will be entitled to fee waiver for SMS Banking service use for
“E-Favor Deposit” account; SMS Banking fee for other deposit accounts of
customers shall not be waived In addition, customers shall be waived fee for
Internet Banking and Mobile Banking services during the period of using
“E-Favor Deposit”
Waiver for international card annual fee, and Visa Platinum card issuance fee:
Customers are entitled to 1-year annual fee waiver for newly-issued or existing
international cards; applicable to debit cards, credit cards, principal cards and
supplementary cards where customers are also the cardholders (except for Visa
Platinum cards) Furthermore, for Visa Platinum cards: customers are entitled to
be waived card issuance fee, not annual fee
Fee waiver for account maintenance:
In the first 3 months of product use, should the average balance during the month
be less than 20 million dong, customers are entitled to account management fee
waiver (worth 55,000 dong/month/account)
Customers using the “E-Favor Deposit” product are entitled to the interest rates as
b. Non- transaction deposit
Trang 6 Time saving deposit
Eximbank receives customers’ time savings deposit with flexible funds withdrawal in VND and foreign currencies During Eximbank’s working hours, customers can come to deposit, withdraw at any time Time saving accounts bring many benefits to customers
- Savings books can be withdrawn at any branches/transaction offices of Eximbank countrywide
- Used to confirm customers’ financial capability to travel or study abroad, etc,…
- Used as pledge, guarantee to request for bank loans
- Used as deposit for international credit card issuance
- On maturity date, if customers do not withdraw or have any requirements, Eximbank will automatically convert interest into the principal and renew the term
- When in need of funds, customers can withdraw or pledge their savings books for loan at the bank without waiting for maturity date
- On maturity date, customers can deposit further amount to the savings book without asking for a new one
- For savings books in foreign currencies, Eximbank will use financial tools
to convert into other currencies at the customer’s request
Interest rate of time saving deposit:
Term
Interest paidupfront
Interest paidmonthly
Interest paidevery 2 months
Interest paidquarterly
Interest paidevery 6 months
Interest paidannually
Interest paid
at end
Trang 7When customers use online saving account, they needn’t wait for long time, or worry about traffic jam and bad weathers as sudden rain… Therefore, customers could save money and time remarkably.
This deposit also offers a range of outstanding features, namely, Simple and easy to use; Customers can perform transactions every time and everywhere; Interest rates are equal to those applicable for transacting at the counter; Experience Eximbank’s outstanding online banking services
In addition, online saving account provides a number of utilities Applicable to VND and USD deposit; Various deposit terms of from 1 day to 60 months; Interest payment method: term-end, monthly, quarterly, annually; Minimum deposit amount: VND2,000,000 or USD200, no limit on the maximum deposit amount; Interest rate for "ONLINE SAVINGS" shall be entitled to bonus rates 0.1%/year than interest rates at transaction; Registration for automatic interest transfer: interest shall be automatically transferred to the demand account; Term renewal: on maturity date, if customers do not close the accounts, the deposit amount shall be automatically renewed to the following term with the corresponding interest rate and term at the time of renewal
Individual Customers using the "Online savings" product on Internet Banking, Mobile Banking, for terms from 1 month and more, shall be entitled to bonus rates 0.1%/year than interest rates at transaction
Interest rate for "Online savings" = Interest rate at transaction counter + 0.1%/year
Deposit with interest rate based on actual deposit time
When customers want to withdraw money early, customers must close their savings book and individual deposit accounts And customers are not entitled to automatically adjusted interest rate They only are entitled to demand interest rate at the time of withdrawal
Salary Accumulation Savings Deposit
In order to meet the demand of accumulating small amounts from monthly salary to achieve a bigger sum in the future as well as to facilitate customers to implement
Trang 8their financial plans in their lives, from June 26th, 2012, Eximbank will launch a new product “salary accumulation savings deposit” which allows customers accumulate small amounts to realize big dream.
When taking part in this program, customers will receive many offers:
-Minh long porcelain cup for the first 1,000 depositors;
-Bonus point accumulation for gift redemption
Individual customers receiving salary via account opened at Eximbank place
“Salary accumulation savings deposit” are entitled to bonus point accumulation for gift redemption For instance, Vn-Topup reward of VND50.000 for groups
of 30 customers and upwards, 1% per year reduction on mortgage lending interest rate,free of charge for salary account statement, maximum 3 times/month and fixed interest rates throughout the deposit term:
months
12 months
VND interest
Minimum deposit
amount per month VND 5 million VND 2 million VND 500,000
Overnight Savings Deposit
“Overnight Savings Deposit” is a kind of short term investment within 24 hours of
individual customers by personal deposits and savings deposits, with high liquidity and helps customers to manage their funds effectively Customers can deposit money for several times by cash or transfer and shall enjoy interest rate after 24 hours based on the time of each deposit
Similarly, this account has many outstanding features: a kind of short term VND investment within 24 hours of individuals by deposits, savings with high interest rate, daily interest payment and automatically credited to principal, helping customers to manage their funds most effectively, high liquidity, customers can deposit or withdraw money for several times by cash or transfer
Trang 9 Mixed savings deposit
Mixed savings deposit is a flexible product which is a combination of demand and time savings deposit, satisfying customers’ needs of unexpected deposit and withdrawal
Benefits:
- When in need of funds urgently, customers can withdraw part of the principal
or deposit more funds at any time
- The withdrawn or deposited amounts bear the same interest rate as specified in the savings books
- In case savings book full withdrawal is before the term, Eximbank will calculate the interest rate as the preceding lower rate
- Savings books are open once during transactions with Eximbank and can be used in all Eximbank’s network countrywide
- Apart from normal functions of savings deposit, mixed savings deposit can be used as a payment account such as transfer, bills payment for electricity, water, contract, etc,…
- Interest rate of mixed saving deposit is 0.3 % per year
1.2 Values of deposit source of fund
a. 2012
Overall, deposit sources of fund accounted for the biggest percentage of Eximbank’s liabilities in 2012 with the rate of 46.6% Similarly, the amount of customer deposit stood at 70,450,310 VND million compared to 69,941,806 VND million of non-deposit sources of fund
(Source: Annual report of Eximbank -2012)
In general, all kinds of deposit in Eximbank had an upward trend in 2012 except for Margin deposit In particular, the quantity of demand deposit in VND rose remarkably by 935634 VND million between 2011 and 2012 In the same way, the amount of demand deposit in foreign currency and demand saving deposit in both VND and foreign currency increased significantly through 2 years
Trang 10In addition, in term deposits, the figure of term deposit in VND climbed considerably by 2,589,362 VND million while the amount of term deposit in foreign currency declined sharply by 611,691 VND million in 2 years By contrast, the quantity of term saving deposit in VND grew 1.6 times from 120,013,696 VND million in 2011
On the other hand, both margin deposit in VND and foreign currency were witnessed a double fall from 2011 to 2012, a difference of 431,129 and 195,798 VND million respectively In term of deposit for specific purposes, deposit for specific purposes in VND experienced a dip of 3242 VND million through 2 years whereas over 4.5 time increase was made by deposit for specific purposes in foreign currency
Trang 11(Source: Annual report of Eximbank- 2012)
Trang 12b. 2013
In 2013, deposit sources of fund made the largest percentage of over 51% in Eximbank’s liabilities, compared to 46.6% in 2012, a difference of 4.4 %
(Source: Annual report of Eximbank - 2013)
In customer deposit, demand deposit in VND’s quantity roared substantially by 6,468,592 VND million between 2012 and 2013 Similarly, the amount of demand deposit in foreign currency rocketed from 1,885,418 to 2,397,772 VND million Demand saving deposits in both VND and foreign currency had a boom through 2 years
Obviously, total amount of term deposit surged noticeably by nearly 6,188,222 VND million from 2012 to 2013 Particularly, term deposit in VND was witnessed an around 5,487,674 VND million surge through 2 years, compared to 83,658 VND million of term deposit in foreign currency