credit business analysis solutions for implementing business strategic tasks for the 2019 2021 period of asia commercial bank( hung yen branch)

FOREIGN TRADE UNIVERSITYFACULTY OF BANKING AND FINANCE ---***---INTERNSHIP REPORT TOPIC: CREDIT BUSINESS ANALYSIS SOLUTIONS FOR IMPLEMENTING BUSINESS STRATEGIC TASKS FOR THE 2019-2021 P

FOREIGN TRADE UNIVERSITY

FACULTY OF BANKING AND FINANCE

-*** -INTERNSHIP REPORT

TOPIC: CREDIT BUSINESS ANALYSIS SOLUTIONS FOR

IMPLEMENTING BUSINESS STRATEGIC TASKS FOR THE 2019-2021 PERIOD OF ASIA COMMERCIAL BANK( HUNG YEN BRANCH)

Assoc Prof., Dr Dang Thi Nhan

Ha Noi, August 17th, 2020

In the process of international economic integration today, bank credit plays a very important role in promoting the socio-economic development of a country Bank credit helps businesses, especially small and medium-sized businesses to take advantage of business opportunities in time, contribute to improving the efficiency of capital use for businesses, thereby helping these businesses day by day grow stronger Above all, bank credit is also a traditional activity and is the most important profitable profession for each bank Therefore, the full and timely repayment of loans from borrowers is decisive to the development of each bank It ensures a circular, continuous, and profitable capital rotation process of the bank and is also the basis for ensuring the bank's solvency Therefore, improving credit quality is the most crucial issue in the management and business activities of banks, especially credit quality for small and medium enterprises, because of outstanding loans This group of businesses always accounts for the highest proportion of the total outstanding loans of each bank Although there is a lot of growth potential with a large capital demand, the small and medium business sector still has many potential risks, making the credit quality of this department not high To overcome that situation, banks always have to come up with solutions to improve credit quality for small and medium enterprises.

Stemming from that fact, along with the internship at the small and medium enterprise credit department of Vietnam Prosperity Joint Stock Commercial Bank VPBank - Hanoi branch, I chose the topic: “Business situation analysis credit for SMEs at Vietnam Prosperity Joint Stock Commercial Bank - Hanoi branch "to research and write internship reports.

Due to the lack of practice time, knowledge and experience of myself are not really depth, the report cannot avoid the limitations of content and presentation I look forward

in-to receiving the teacher's evaluation and feedback in-to make my report more complete Thank you sincerely!

CHAPTER 1 AN OVERVIEW OF ASIA COMMERCIAL BANK IN HUNG YEN BRANCH AND INTERNSHIP DIARY

1.1 Overview of the organization

1.1.1Introduction of ACB IN Hung Yen Branch

Asia Commercial Bank Hung Yen Branch was established on November 16, 2002 by Decision No 902 /QD.VP.02 of the Chairman of the Board of Directors of Asia Commercial Bank and approved by theState Bank February 7, 2002 according to Decision No 150 / NHNN-CNH

Address: Town of Ban Yen Nhan, My Hao District, Hung Yen Province

To be granted the branch operation registration certificate number: 0513000058 by the Department ofPlanning and Investment of Hung Yen province for the first time on December 9, 2002, changed for the8th time on December 6, 2017 The business line of the branch is banking

Hung Yen Cluster has 03 sub-branches: Van Lam Transaction Office, Pho Hien Transaction Office, VanGiang Transaction Office

Director of Hung Yen Cluster: Mr Nguyen Trong Huy was appointed Director according to Decision

5021 / TCQĐ-NS.10 dated December 8, 2010 On October 29, 2018, Mr Nguyen Trong Huy wasreappointed under Decision 3886 / TCQĐ- QTNNL.18, for a period of 03 years (from November 1, 2018

to October 31, 2021)

1.1.2Products, policies, regulations and activities data

A Credit granting activities, off-balance sheet commitments; debt classification, setting up and use

of provisions against credit risks

1 Policies, internal processes

- Internal credit policies and processes:

+ Loan Regulations of Asia Commercial Bank for customers No 304 / TCQĐ-HĐQT.18 dated January

24, 2018

+ Regulations on limits and restrictions to ensure safety in credit operations of ACB No 56 / QLRRTD.18 dated January 22, 2018

NVCV Policies and internal procedures for lending:

+ Loan Regulations of Asia Commercial Bank for customers No 304 / TCQĐ-HĐQT.18 dated January

24, 2018

+ Regulations on loan in foreign currency for residents, No 711 / NVCV-QLRRTD.18 dated December

31, 2018

- Guarantee policies and internal processes:

+ Amending and supplementing the Guarantee Regulation of Asia Commercial Bank No 544 / HĐQT.18 dated February 13, 2018

TCQĐ Discount policy and internal process:

+ Regarding the amendment and supplementation of the Regulation on the discount of negotiableinstruments and other valuable papers at Asia Commercial Bank for customers Official Letter No 1835 /TCQĐ - HĐQT.17 dated June 29, 2017

- Internal L / C policies and procedures for import:

+ Regulations on issuing import credit letter No 57 / NVQĐ-SPTTNK.19 dated February 15, 2019

- Policies and internal processes for other credit products:

+ Provisions on loan products for production and business activities - Supplementing working capital andinvestment in fixed assets, CV 194 / NVQĐ-SPTDCN.18 dated April 11, 2018

+ Regulations on loan products to serve the needs of life - with collateral, No 118 / NVQĐ-SPTDCN.17dated March 14, 2017

+ Regulations on loan products to serve the needs of life, OL No 127 / NVQĐ-SPTDCN.17 dated March

14, 2017

+ Provisions on lending to buy mortgage cars for corporate customers, No 129 / NVQĐ-SPTDDN.17dated March 14, 2017

+ Loans for production and business investment capital for customers SB, SE No 540 / SPTDDN.17 dated August 28, 2017

NVQĐ Internal policies and procedures for debt classification, credit risk provisioning and use of provisions forcredit risk settlement:

+ Decision No 4046 / TCQĐ-HĐQT.17 dated December 18, 2017 amending, supplementing andpromulgating the Regulation on asset classification, rate of deduction, method of risk provisioning andthe use of using risk provisions in operations at Asia Commercial Bank

- Documents defining the judgment limits by levels; Documents of competent authorities on grantingcredit beyond limit for customers, customers and related persons:

+ Approval authority of credit approval levels and some other approvals No 145 / NVCV - QLRRTD.18dated March 21, 2018

2 Activity data

- Report internal credits to members of the Board of Directors, executive managers, and majorshareholders holding from 1% of the bank's charter capital; Credit grants, investment trusts, advances forSubsidiaries and Affiliates as of December 31, 2018: None

- Report in detail the receivables, note the entrusted or other receivables but the nature is like a loan andACB must bear the risk: None

- Detailed report of customers with outstanding loan but having debt recorded on the receivable account:None

- Report of loans secured by assets owned by members of the Board of Directors, managers andexecutives, major shareholders holding 1% of ACB's charter capital: None

- List of customers who have treated risks but have not recovered:

- Credit growth targets for 2016, 2017 and 2018 assigned by Head Office to branches and performanceresults of branches in 2016, 2017 and 2018:

- Notice of conclusion Checking non-cash payment services at some credit institutions in the area, No.

1237 / TB-HYE dated November 2, 2016

- Record of checking results of non-cash payment services at Asia Commercial Bank - Hung Yen branchdated October 21, 2016, according to the inspection team Decision 1098 / QD-HYE

- Inspection Minutes No 16 / BB- ĐTTr dated November 29, 2016: Record of business inspection at AsiaCommercial Bank, Hung Yen branch in 2016

- Working record No 06 / BB-ĐTT dated 9/11/2016 on inspection and inspection of compliance withlegal provisions in commercial activities - Protection of consumers' interests in the province

- Conclusion on the inspection of the compliance with the security regime of treasury and cashmanagement of Asia Commercial Bank Hung Yen branch No 843 / KL-HYE, dated September 6, 2017.+ Year 2018: Not available

- Report on assets assigned, debt tightening pending resolution; pledged property; Pledge of valuablepapers from customers (Account 994, 995, 996) on December 31, 2016, December 31, 2017 andDecember 31, 2018

REPORTS OF CUSTOMERS 'SECRETARY ASSETS, SECURITIES

Time Amount (VND)

31/12/2016 2,755,830,334,01431/12/2017 3,393,427,947,64931/12/2018 3,923,212,712,583

- Detailed report on customers whose debt is restructured in accordance with Decision 780 / QD-NHNNdated 23/4/2012 of the State Bank of Vietnam on debt classification for debt with rescheduled debt term,debt rescheduling and Circular No 09/2014 / TT-NHNN dated March 18, 2014 of the State Bank onDecember 31, 2018 - Table 1F

- Report on customers and related persons as of December 31, 2018 - Form 1I

Internal regulations, accounting policies and banking documents

+ Financial Regulations of Asia Commercial Bank No 677 / NVQĐ-NVTTGĐTC, dated September 14,2015

+ Regulation on spending of Asia Commercial Bank No 401 / NVQĐ-NVTTKTT.15 dated May 28,2015

+ Financial Regulation of Asia Commercial Bank No 465 / NVQĐ-KSTC.18 dated August 17, 2018+ Financial Regulation of Asia Commercial Bank No 178 / NVQĐ-KSTC.18 dated April 3, 2018

The bank's internal policies on investment trust and loan entrustment activities:

+ Decision on amending and promulgating the Investment Regulation of Asia Commercial Bank No

3 ACB - PHỐ HIẾN

TRANSACTION

1,130,051,284

4

ACB - VĂN GIANG TRANSACTION OFFICE 1,024,871,249

TOTAL 8,586,064,606

Report data on investment trusts; loan entrustment, other external receivables such as: deposits from theBank to broker to buy securities for the bank; deferred investment trust amounts paid by the bank;advance dividends; shares must be collected from the sale; interest receivable from bonds; capitalcontribution with the company; debt clearing amount; the settlement of fixed assets to offset debts andother assets assigned to the Debt Management and Asset Exploitation Company; Advances for operationsand other receivables: No incurred

3 Policies, internal processes

- The Bank's internal policies and regulations on deposits, interest rate notices, interest rate regulations,promotions, mobilization programs

+ Regulation on savings deposit No 463 / NVQĐ-SPHĐCN.16 issued on 07/15/2016

+ Decision on deposit interest rate: OL 670 / NVQĐ-SPHĐCN.18 issued on December 7th, 2018

OL 607 / NVQĐ-SPDVTCDN.18 dated 11/19/2018

+ Promotions, mobilization from 2016 to 2018:

Fast money transfer within 1 minute in 2016

Loving Sum Vay 2016

Automatic Payment Service 2017

Loc Xuan ACB in 2016

Summer Fun with ACB in 2017

Celebrate Christmas, Celebrate New Year With ACB (Dial) 2017

Celebrate Christmas, Celebrate New Year With ACB (give gifts) in 2017

ACB Account Transactions, Discover Asia 2017

Loc Xuan Nhu Y in 2018

Loc Nhan Doi With Online Deposit 2018

Women Are To Love 2018

25th birthday, 2018

ACB - 25 Years of Facing In 2018

Connecting Families Enjoying Fun 2018

Deposit Online - High Interest Rate - Great Prize 2018

4 Activity data.

- Deposit statements (VND, other foreign currencies) of customers as of December 31, 2018 (Attach list)

- Detailed report on customers withdrawing their capital before maturity with detailed accounting books

of each type of deposit in Vietnam dong of the credit institution's organization or individual with depositbalance in months of 2017, 2018, before or after inspection points if relevant

MONTH Early withdrawal amount (VND)

C Compliance with provisions of the law on foreign exchange activities.

1 Internal policies and procedures: Internal policies, the Bank's internal regulations on foreign exchangeactivities, mobilization and lending in foreign currencies

- Official Letter 666 / NVCV-VHGD.18 dated November 30, 2018 Regarding the implementation of anumber of transactions at ACB in accordance with foreign exchange management regulations

- Official Dispatch 711 / NVCV-QLRRTD.18 dated December 31, 2018 Regarding foreign currencyloans for borrowers who are residents

2 Activity data.

- Report on foreign currency purchases and sales each month in 2017 and to December 31, 2018

MONTH Purchase sales Sales

USD Other foreign currencies are

converted into USD

USD Other foreign currencies are

converted into USD

- Report on sales of money remittance abroad in 2017 and 2018.

+ In 2017: 5,141,680.62 USD (Including other converted foreign currencies)

+ In 2018: 7,961,567.78 USD (Including other converted foreign currencies)

D Compliance with provisions of laws on money laundering prevention and combat

1 Implementation of internal regulations on prevention of money laundering

ACB always promptly updates, supplements, and corrects internal regulations on money launderingprevention and combat in accordance with the laws and regulations of the State Bank Specifically, OL

624 / NVQĐ- PCRT.18 of the Chairman of the Board of Directors issued on November 27, 2018, thisdispatch streamlines the previous anti-money laundering documents, updates the legal changes.Vietnamese and international law, in accordance with reality, in accordance with the guidelines of theState Bank of Vietnam

ACB's internal regulations on money laundering prevention and combat are widely disseminated toeach individual and relevant department All ACB officers and employees are trained, regularly updatetheir knowledge and skills on prevention of money laundering ACB regularly organizes training classesfor employees such as distance training, concentrated training, knowledge dissemination for employees tounderstand and comply with requirements, content related to prevention and control measures moneylaundering at the unit in accordance with the law and ACB's regulations on prevention of moneylaundering

2 Assignment of officers and divisions responsible for anti-money laundering

ACB Hung Yen always obeys the regulations of the head office, as well as the regulations of the StateBank of Vietnam on prevention of money laundering Mr Nguyen Trong Huy- Branch Director is

directly responsible for organizing, directing and inspecting the compliance with anti-money launderingregulations in Hung Yen cluster as required and directed by Head Office.

ACB Head Office focuses on notifying in writing to the Anti-Money Laundering Department on theregistration of contact information of the focal point in charge of prevention of money launderingthroughout the ACB system Branches are responsible for deploying to employees about the rules,directions of the office, the legal documents related to money laundering prevention

Supervisors, Head of Department at ACB Hung Yen were empowered by Branch Director toimplement, inspect, review and assign staff to prevent and combat money laundering in accordance withthe law, the provisions of Head office and state bank

Results of the implementation of money laundering prevention and combat since 2016:

- All staff of ACB Hung Yen are fully aware of the regulations, requirements of money launderingprevention, combat, terrorism financing and related regulations, always completing the assigned tasks andnot letting happen Any money laundering at the branch during the operation

- From 2016 to now, ACB Hung Yen has not let any case of money laundering happen

3 On identifying and updating customer information

ACB Hung Yen performs the entire client identification process in accordance with the law and ACB'sinternal regulations according to Appendix 01 issued together with Decision No 624 / NVQĐ- PCRT.18dated November 27, 2018 of the Chairman of the Board of Directors on prevention of money laundering ACB Hung Yen has clear and specific processes and procedures for identifying customers, verifyingand updating customer information

ACB Hung Yen always identifies and verifies customer information for all the following cases:

Customers establish a transaction relationship or open an account for the first time with the branch;+ Customer performs irregular transactions with great value or electronic money transfer but lacksinformation about originator's name, address or account number;

+ When doubting the transaction or the parties related to the transaction are related to money launderingactivities;

+ When the branch is in doubt about the accuracy or completeness of the information to get to knowcustomers previously collected;

ACB Hung Yen regularly updates customer identification information during relationshipestablishment with customers

4 Regarding internal control and audit

According to Article 13, Decision No 624 / NVQĐ- PCRT.18 dated November 27, 2018 of the Chairman

of the Board of Directors on money laundering prevention and combat, clearly stipulates that the internalaudit committee performs internal audit of prevention and control activities Money laundering aims toindependently and objectively inspect, review the internal control system, the compliance withestablished internal regulations and propose, propose measures to improve efficiency, effect of moneylaundering prevention

All violations detected in the internal audit and review process are reported to the person in charge ofmoney laundering prevention and combat and the General Director for handling

Within 60 days from the end of the fiscal year, the ACB Head Office shall send an internal audit report

on the prevention of money laundering to the Anti-Money Laundering Department under the BankingInspection and Supervision Agency

The training is conducted under different forms such as distance training, intensive training, sendingstaff to participate in training courses, disseminating knowledge and skills on prevention of moneylaundering by the Home Bank organizations or other competent authorities The training must beconducted at least once a year or when there are new regulations and policies