BÁO cáo ANH văn CHUYÊN NGÀNH NHÓM 8

Even if customers go to bank’s counter to make transactions that the bank employees would like to deceive customers, customers don’t know if their money has been transferred to the accou

TODAY, WE WILL PLAY THE ROLE OF EXPERTS IN DIFFERENT FIELDS THESE EXPERTS WIL PARTICIPATE IN AN EXCHANGE WHICH WILL BE BROADCASTED ON ABC CHANNEL’S FINANCIAL NEWS WITH THE TOPIC IS THE CRISIS OF VIET NAM EXPORT IMPORT COMMERCIAL

JOIN STOCK BANK (ABBREVIATED AS EXIMBANK).

- Megan: Hello all the viewers, you are watching ABC channel’s Financial

News Today, we have an exchange and our experts will answer the questions about a topic that has caused panic and anxiety for a lot

of people in recent times The topic is "The crisis of Viet Nam Export Import Commercial Joint Stock Bank"

In order to discuss this topic, we are very pleased to invite Mrs Jenny, she is the Director of Finance Economics Institute of Fulbright University

- Jenny: Hello everyone I am honored to be invited to our exchange today.

- Megan: Mrs Hana, she is the Chief Economist of BIDV Bank.

- Hana: I am very happy that today is second time I am invited as a guest on

ABC channel’s Financial News

- Megan: Next is Mrs Nancy, she is a Lawyer with twelve years of

experience

- Nancy: Hi, good morning everyone.

-Megan: And finally is Mrs Mary, she is the Chief Information Security

Officer of HSBC Bank in Viet Nam

- Mary: I hope today we bring the most useful information for you.

-Megan: Let’s start As we know, after the end of Lunar New Year holiday,

bank employees rushed back to work as usual Unfortunately, shortly thereafter, many online newspapers simultaneously reported that a vip customer of Eximbank has been lost 245 billion VND in her savings accounts That is a huge loss Eximbank’s General Director said that Mrs Chu Thi Binh is a loyal customer and she is one of bank’s vip customers since 2011 Sir Le Nguyen Hung, Deputy Director of Eximbank’s Ho Chi Minh branch took advantage

of this customer in order to falsified documents and authorizations to expropriate more than 245 billion VND from her savings accounts

By the way, Taking advantage of Mrs Binh’s trust, Mr Hung repeatedly went with his staffs to her house to present the savings accounts matured In fact, however, he instructed the staffs to make false documents to withdraw money from her accounts didn’t mature and then sent the amount to the accounts matured In this way, he expropriated a large amount for a long time And Mr Hung has fled to foreign country since late 2016

Currently, Eximbank hasn’t refunded this lost money to the customer Eximbank took this case to the court and waited for the court’s decision General Director stated that if the court ruled that Eximbank would have to refund the lost money to customer, the bank would refund it immediately

- Megan: We start with today’s first question for Mrs Nancy What do you

think about Eximbank’s decision to wait for verdict of court instead

of refunding the lost money to customer?

-Nancy: Eximbank wanted to sue Mr Hung and waited for the verdict of

court and then refund the lost money to customer is not in accordance with the law According to the provisions of the Civil Law, if an employee commits an act of misconduct that causes damage to the customer, the employer must compensate to customer without waiting for court’s verdict

- Megan: Anything to add, Mrs Hana?

- Hana: From Eximbank’s perspective, Eximbank is a bank whose shares are

traded on the stock exchange, they must consider the interests of shareholders Therefore, they can’t refund the lost money to Mrs Binh based on the results of investigation without the court’s judgment All things must be documented legally However, bank is

a prestigious business, so in all cases, the legitimate interests of customers must always be protected If Eximbank continues to delay, resolves to wait for the verdict, they will lose its customers

-Megan: Some of my friends withdrew their savings from Eximbank after

Mrs Binh’s loss This seriously affects the capital of a bank

- Megan: A next question for Mrs Jenny Some people claims that customer

also has faults in this case, because she thinks that she is an important customer so she has the right to make transactions at home and she trusted in Mr Hung so she didn’t contact Eximbank again to check information What do you think about this opinion?

- Jenny: I don’t quite agree with the idea Customer is faultless and keeping

money is the bank’s responsibility Bank is the safest place both in theory and practice Bank has modern facility, technology and trained personnel so they are qualified to keep the customer’s money safe It is obvious that vip customers have more incentives compared

to current customers They have the right to receive many incentives

because they bring a lot of benefits to the bank For example, Viet Nam Airline has private room for vip customers and they have the right to arrive late It is unreasonable to state that customer lose her money because of making transactions at home Even if customers

go to bank’s counter to make transactions that the bank employees would like to deceive customers, customers don’t know if their money has been transferred to the account yet This is a transaction within the bank’s internal system

- Megan: Yes I agree with you VIP customers are always given many

incentives in any business, not just in banking business These incentives are very significant, because they create competitiveness

of each bank

- Megan: Next question, I would like to invite Mrs Nancy to answer.

According to you, is the process of controlling the withdrawal and deposit of banks too rudimentary ?

- Nancy: Yes, it is For example, when a customer arrives at a transaction

office of a bank to withdraw money, the transaction documents are confirmed by a bank teller, a supervisor and then it is authorized to pay a certain amount by the transaction office’s director Next, the bank treasurer checks the validity of those documents and executes the customer’s withdrawal order So if these three people collude for vouchers to withdraw money from customer’s account, this will be leaked

- Megan: I understand what you just said However, the process in the bank

can’t be too cumbersome because if it is too cumbersome, it will take time for both customers and staffs Banks always try to remove unnecessary regulations to make customers feel comfortable and faster

- Nancy: In my view, the current process has many gaps to facilitate

employees to misconduct

- Megan: Ah ha, I see I respect your viewpoint

- Megan: We continue with a question that has legal element I certainly have

to ask Mrs Nancy again Many customers who come to the banks usually sign up very quickly the papers bank staffs give them without reading the content due to long content So with savings

book, what things should customers pay special attention first?

- Nancy:When customers choose a bank to save money, they have confidence

in the bank Each bank will have its own rules when depositing money

According to the regulation on savings, when depositing savings for the first time, customers have to produce identity cards and other documents Many customers are too subjective to trust the bank without reading information carefully

My advice is that if the customers can’t read them, they have to focus on some text A savings account is a certificate of ownership

of a savings account

Customers need to pay attention to the information: how much money, term deposit, interest rates and especially the stamp, legal signature of the tellers, treasurer of the bank Sometimes, customers need to pay attention to the form of papers

- Megan: Thank you, Mrs Nancy for useful information you just provided

The viewers who are watching our exchange definitely remember these note you provided

- Megan: A first question of Mrs Mary today Currently, what measures do

the banks take to make sure their customers know their money has

been recorded in banking system?

- Mary: It's easy to manage the money in your account With the current level

of information technology, most banks will use SMS banking service every time they transfer money or send money, the SMS banking system will update on the payment system

We recommend that, as most people use the phone, everyone should use this service Or people can also use internet banking if they regularly work on computers Also, you can ask your bank to send account statements, look at it you can know what is true trading in the past one month Typically, banks will send statements via email

- Megan: Yes, I also use SMS banking service to check account balance It is

very useful Excuse me can you explain to viewers so they can understand what SMS banking service is? What are the advantages

of using SMS banking service?

-Mary: SMS banking service is a service that informs about the change of

bank account This is a method of trading on the phone to help customers know their account information for a period of time, from the time of query back in advance

The benefits of SMS Banking service are:

Receive immediate notice of change in account balance

Save time and money

Increase the security of your bank account

You can find out more about the ATM's of a particular bank

Get to know the bank branches nationwide when you need

Query information about exchange rates

- Megan: Thank you Mrs Mary SMS banking service really help customers a

lot I think if customers have deposit transactions with banks, they should register this service Mrs Hana, How can customers register SMS banking service?

- Hana: For customers who do not have a bank card: To register for SMS

Banking, customers need to have a card account Please bring ID card to the branch of the bank which customers select, closest to you

to open a card account, and also register to use SMS Banking

For customers who have a bank card but have not registered to use SMS Banking, please bring your ID card to the nearest bank / transaction office for registration support

SMS Banking, customers only need to register once and used for a long time If you change your phone number, bring your identity card to the branch office of the bank to cancel your old number and register your new phone number

-Jenny: SMS banking service is almost used to check the deposit account If

customers want to check the money in savings account by this service, they must compile another grammar structure message Having learned by experience from Eximbank’s customers has been lost money, many Commercial Banks in Vietnam started to increase

in protecting customers

The first is Maritime bank It introduced the way to compile detailed the saving accounts through the web of this bank To check the situation of their saving accounts, customers only need to access to the website of the bank, click the symbol “saving pig” at the right of the screen You can see this is the website of Maritime bank Look

at the right of the screen, you will see this symbol After clicking at this symbol and adding some needed personal information, customers will look up all information about the saving account including: name of the owner, the initial amount of money, the current amount of money, date of saving, due day, period, interest,… User can check the situation immediately without doing any procedure

-Megan: The next question for Mrs Hana: Central Bank with the role of

regulating the macro economy, what actions have they taken after the vip customer has been lost 245 billion VND?

- Hana: Central bank requires Commercial Banks to review, supplement and

tighten internal procedures related to capital mobilization and credit, especially the relationship with customers At the same time, Central Bank also requested the inspector to inspect the Eximbank’s branch which had caused this incident

- Megan: I would like to provide more information that after inspecting

Eximbank’s Ho Chi Minh branch, where Mr Le Nguyen Hung was Deputy Director, the police arrested Ms Ho Ngoc Thuy and Ms Nguyen Thi Thi According to a member of Eximbank’s Administrative Council, they didn’t appropriate Mrs Binh’s money but they received the documents and confirmed the authorizations from Mr Hung without the presence of Mrs Binh Through this, not only Eximbank’s employees but also other banks employees began to fear because of the same negligence in their work process

as the two arrested employees of Eximbank

- Nancy: I think the bank employees to do the following three things:

Firstly, they should be equipped with legal knowledge and understand the business process Secondly, they need to brave and say no to the wrong directions of the superior Finally, they should carefully check before signing any documents, whether it is a main signature or minor signature

- Megan: This is a very important advice at this sensitive time.

-Megan: We turn to a question about technology of banks Some people

suggested that banks should change technology to prevent bank staffs from exploiting technology gaps to appropriate deposits of customers What do you think about this suggestion?

- Mary: In Vietnam, most banks are still using old core banking from Russia,

Korea for security Old technology has certain holes

I also participate in information security activities for some banks When I went to check the IT system for a bank, I accessed an account of the trader and took over the right of the branch chief, checking the statement I recommend to buy the new core banking

to update

The next issue besides technology is human People can completely fake hand signatures, so banks should apply transactions with electronic signatures, digital signatures, no matter who the customer

is As in foreign countries, VIP customers use digital signatures

- Megan: The case hasn’t been satisfactorily resolved , another customer Mrs.

Bui To Loan reported that she has been lost three gold ounces while she has hold her savings book

Shortly thereafter, Eximbank continued to receive denials from six customers They reported that they have been lost a total of 50 billion VND in their savings accounts There are two customers have been lost more than 30 billion VND

- Megan: Eximbank has been continuously accused of losing money in their

customer’s savings accounts, which has caused a crisis in this

bank What are the signs of this crisis? Mrs Jenny

- Jenny: Crisis is the sudden change or the reason of process, causing an

urgent problem which needs to be solved immediately With a bank, crisis can cause sudden and serious damage for reputation, revenue, asset, staff…

The signals of a crisis at Eximbank:

Firstly, the long-lasting complaint from customer When your customers complain about the dangerous situation related to the services or methods of selling, it’s the clearest warning about the crisis

Secondly, the undisciplined manage standards Eximbank established process having many gaps, which let some people such as vice manager, manger, staff, etc appropriate money from customer Furthermore, they are the people who understand about the undisciplined standards and can cause the damage for the bank Thirdly, the violation about the responsibility for vesting Perhaps, responsibility for vesting is the biggest signal about the crisis in the belief at this bank, because this duty is protecting security of capital

as well as giving responsible financial advice

Fourthly, the decrease in capitalizing on stock market The share price of Eximbank falled at many times, which blew away thousands

of billion Vietnam dongs of this bank

- Megan: With the signs of the crisis, Mrs Jenny pointed out, according to

you which principles Eximbank must implement to prevent this crisis? Mrs Hana

- Hana: Firstly, act fast and decisively The first principle in stopping the

crisis is to act quickly and decisively What Eximbank needs to do is

to review the whole business process capital, emphasizing the deposit process Then, provide a full range of measures to help depositors to check the balance of the deposit immediately and ensure the security of the deposit

Secondly, humans are first Eximbank puts customers first, including: (i) current depositors, in order to avoid loss of deposit; (ii) customers have lost money - this is the source of the crisis at Eximbank; (iii) human resources staff

Thirdly, be present at the scene Leaders need to be present at the scene as quickly as possible This presence is the clear message that these people consider the case very important

Finally, formal communication with the media and receiving information Eximbank should respond to media inquiries to varying degrees and establish a mechanism for receiving information, such

as a key spokesperson, a hotline, a detailed plan for collecting information

- Megan: Many customers have been lost their savings deposits at banks, so a

lot of people thought that Central Bank managed Commercial Banks

in loose way What do you think about this statement? Mrs Nancy?

- Nancy: The Central Bank manages the macro- level, promulgates rules and

regulations and requires commercial banks to have risk management policies in their operations In fact, the responsibility for the recent loss of money belongs to the commercial banks

I think the Central Bank has done well in its role and responsibility when it quickly instructed and required credit institutions to review the operating procedures and ensure the safe of deposits at bank

- Megan: On information security, do you have any idea? Mrs Mary?

- Mary: From the perspective of information security, I find that the Central

Bank is increasingly active For example, the WannaCry incident in August last year, the Central bank's information technology department, issued early warning to banks and banking technology companies I think this has a very positive meaning, indicating that the regulator is more active in order to work with the banks against the risks and negative

- Megan: Mary’s answer ended our exchange today With the information we

exchanged today, it isn’t difficult to realize that banking is a risky business Both the bank bosses, bank staffs and their superiors also face different risks Bank bosses take responsibility of extracting their profits to compensate customers if their bank staffs appropriate customer’s money Employees must clearly understand the provisions of law and be careful in signing the documents given by

their superiors even those signatures aren’t primarily responsible Just a bit of negligence, they face the judgment of law

On behalf of ABC channel, I am very grateful to the experts who have spent precious time to participate in our discussion today We will update the latest news in ABC’s next Financial News

Goodbye and see you again

REFERENCES

http://vietnamfinance.vn/ls-truong-thanh-duc-cu-hanh-xu-the-nay-ngan-hang-se-mat-het-20180226092803193.htm

http://vietnamfinance.vn/vu-chiem-doat-245-ty-dong-tai-eximbank-quy-trinh-giao-dich-ngan-hang-qua-tho-so-20180225100924781.htm

http://cafef.vn/eximbank-noi-gi-ve-vu-245-ty-cua-khach-hang-boc-hoi-20180222202313133.chn

http://cafef.vn/thay-gi-tu-vu-nhan-vien-eximbank-bi-bat-20180401235030415.chn