Corporate credit analysis at joint stock commercial bank for investment and development of vietnam thang long branch graduation thesis

Phân tích tín dụng doanh nghiệp tại Ngân hàng Thương mại Cổ phần Đầu tư và Phát triển Việt Nam, chi nhánh Thăng Long, luận văn tốt nghiệp.

• Tác giả: Le Kieu Oanh
• Người hướng dẫn: Tran Thi Hai Ly, M.A
• Trường học: State Bank of Vietnam Banking Academy
• Chuyên ngành: Foreign Language Faculty
• Đề tài: Corporate Credit Analysis At Joint Stock Commercial Bank For Investment And Development Of Vietnam – Thang Long Branch
• Loại tài liệu: graduation thesis
• Năm xuất bản: 2013
• Địa điểm: Hanoi

Mục lục chi tiết

• DEDICATION
• ACKNOWLEDGMENTS
• TABLE OF CONTENTS
• LIST OF EXHIBITS AND TABLES
• LIST OF ABBREVIATIONS
• EXECUTIVE SUMMARY
• 0.1. The significance of the study
• 0.2. Aims and objectives of the study
• 0.3. Scope and subject of the study
• 0.4. Structure of the thesis
• 1. CHAPTER I: THEORETICAL FRAMEWORK
• 1.1. Bank credit and the roles of lending to business customers
• 1.1.1. Bank credit
• 1.1.2. Types of credit to business customers
• 1.1.3. Roles of bank credit to enterprises in the economy
• 1.2. Corporate credit analysis at commercial banks
• 1.2.1. Definition of credit analysis
• 1.2.2. Objectives of corporate credit analysis at commercial banks
• 2. CHAPTER II: THE INTRODUCTION OF JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM – THANG LONG BRANCH
• 2.1. The establishment and development of Bank for Investment and Development of Vietnam – Thang Long branch
• 2.2. Organizational structure of BIDV JSC Thang Long
• 2.3. Performance analysis by business at BIDV JSC Thang Long
• 2.3.1. Fund mobilization operation
• 2.3.2. Performance of banking services
• 3. CHAPTER III: ANALYSES AND FINDINGS
• 3.1. Current situation of corporate credit analysis at JSC Bank for Investment and Development of Vietnam – Thang Long branch
• 3.1.1. Credit analysis process at BIDV JSC Thang Long
• 3.1.2. Some remarks on the effectiveness of corporate credit analysis operation at BIDV JSC Thang Long
• 3.2. Drawbacks and causes
• 4. CHAPTER IV: SOLUTIONS TO IMPROVE CORPORATE CREDIT ANALYSIS OPERATION AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM – THANG LONG BRANCH AND RECOMMENDATIONS TO AUTHORITIES
• 4.1. General orientation for credit analysis operation at BIDV JSC Thang Long
• 4.2. Solutions for improvement of corporate credit analysis operation at BIDV JSC Thang Long
• 4.2.1. Improvement of the credit analysis personnel in terms of quantity and qualification
• 4.2.2. Equitable organization and administration of credit analysis operation
• 4.2.3. Upgradation of information quality to ensure accuracy, sufficiency and timeliness of information
• 4.2.4. Application of information technology into corporate credit analysis, especially modern computers and specialized software
• 4.2.5. Solutions to collateral valuation
• 4.2.6. Development of standardized system to evaluate the effectiveness of corporate credit analysis process
• 4.3. Recommendations to authorities
• 4.3.1. To the Government
• 4.3.2. To related ministries, sectors and offices
• 4.3.3. To the State Bank of Vietnam
• 4.3.4. Recommendations to BIDV JSC

Tóm tắt

I. Tổng Quan Về Phân Tích Tín Dụng Doanh Nghiệp Tại BIDV Thăng Long

Phân tích tín dụng doanh nghiệp là một trong những hoạt động quan trọng tại ngân hàng thương mại cổ phần Đầu tư và Phát triển Việt Nam - Chi nhánh Thăng Long. Hoạt động này không chỉ giúp ngân hàng đánh giá khả năng trả nợ của doanh nghiệp mà còn góp phần giảm thiểu rủi ro tín dụng. Trong bối cảnh kinh tế hiện nay, việc hiểu rõ quy trình và tầm quan trọng của phân tích tín dụng là rất cần thiết.

1.1. Định Nghĩa Phân Tích Tín Dụng Doanh Nghiệp

Phân tích tín dụng doanh nghiệp là quá trình đánh giá khả năng tài chính và độ tin cậy của doanh nghiệp khi vay vốn. Điều này bao gồm việc xem xét hồ sơ tín dụng, tình hình tài chính và khả năng sinh lời của doanh nghiệp.

1.2. Vai Trò Của Ngân Hàng Trong Phân Tích Tín Dụng

Ngân hàng thương mại đóng vai trò quan trọng trong việc cung cấp vốn cho doanh nghiệp. Qua việc phân tích tín dụng, ngân hàng có thể đưa ra quyết định cho vay hợp lý, từ đó hỗ trợ sự phát triển của doanh nghiệp và nền kinh tế.

II. Những Thách Thức Trong Phân Tích Tín Dụng Doanh Nghiệp

Mặc dù phân tích tín dụng doanh nghiệp mang lại nhiều lợi ích, nhưng cũng tồn tại nhiều thách thức. Các ngân hàng thường phải đối mặt với rủi ro tín dụng cao, đặc biệt là trong bối cảnh kinh tế không ổn định. Việc thu thập thông tin chính xác và đầy đủ từ doanh nghiệp cũng là một vấn đề lớn.

2.1. Rủi Ro Tín Dụng Trong Ngân Hàng

Rủi ro tín dụng xảy ra khi doanh nghiệp không thể trả nợ đúng hạn. Điều này có thể dẫn đến tổn thất lớn cho ngân hàng và ảnh hưởng đến hoạt động kinh doanh của họ.

2.2. Khó Khăn Trong Việc Thu Thập Thông Tin

Việc thu thập thông tin tài chính từ doanh nghiệp có thể gặp khó khăn do thiếu minh bạch hoặc doanh nghiệp không cung cấp đầy đủ dữ liệu cần thiết cho ngân hàng.

III. Phương Pháp Phân Tích Tín Dụng Doanh Nghiệp Hiệu Quả

Để nâng cao hiệu quả phân tích tín dụng, ngân hàng cần áp dụng các phương pháp hiện đại và công nghệ thông tin. Việc sử dụng phần mềm chuyên dụng và các công cụ phân tích dữ liệu sẽ giúp ngân hàng đưa ra quyết định chính xác hơn.

3.1. Ứng Dụng Công Nghệ Thông Tin Trong Phân Tích

Công nghệ thông tin giúp ngân hàng thu thập và phân tích dữ liệu nhanh chóng, từ đó nâng cao độ chính xác trong việc đánh giá tín dụng.

3.2. Quy Trình Phân Tích Tín Dụng

Quy trình phân tích tín dụng bao gồm nhiều bước như thu thập thông tin, đánh giá hồ sơ tín dụng và đưa ra quyết định cho vay. Mỗi bước đều cần được thực hiện cẩn thận để đảm bảo tính chính xác.

IV. Ứng Dụng Thực Tiễn Của Phân Tích Tín Dụng Tại BIDV Thăng Long

Phân tích tín dụng tại BIDV Thăng Long đã được áp dụng thành công trong nhiều trường hợp. Ngân hàng đã giúp nhiều doanh nghiệp tiếp cận nguồn vốn cần thiết để phát triển sản xuất kinh doanh.

4.1. Kết Quả Phân Tích Tín Dụng Tại BIDV

Kết quả phân tích tín dụng tại BIDV cho thấy tỷ lệ nợ xấu giảm đáng kể, nhờ vào việc áp dụng quy trình phân tích chặt chẽ và hiệu quả.

4.2. Các Doanh Nghiệp Được Hỗ Trợ

Nhiều doanh nghiệp đã nhận được hỗ trợ tài chính từ BIDV, giúp họ mở rộng quy mô sản xuất và nâng cao năng lực cạnh tranh trên thị trường.

V. Kết Luận Về Tương Lai Của Phân Tích Tín Dụng Doanh Nghiệp

Phân tích tín dụng doanh nghiệp sẽ tiếp tục đóng vai trò quan trọng trong hoạt động của ngân hàng thương mại. Với sự phát triển của công nghệ, quy trình này sẽ ngày càng trở nên hiệu quả hơn, giúp ngân hàng giảm thiểu rủi ro và nâng cao chất lượng tín dụng.

5.1. Xu Hướng Phát Triển Trong Phân Tích Tín Dụng

Xu hướng phát triển công nghệ thông tin và trí tuệ nhân tạo sẽ giúp ngân hàng cải thiện quy trình phân tích tín dụng, từ đó nâng cao khả năng dự đoán rủi ro.

5.2. Tầm Quan Trọng Của Đào Tạo Nhân Lực

Đào tạo nhân lực có chuyên môn cao trong lĩnh vực phân tích tín dụng là rất cần thiết để đảm bảo ngân hàng có thể đáp ứng được yêu cầu ngày càng cao của thị trường.

Trích đoạn nội dung tài liệu

STATE BANK OF VIETNAM BANKING ACADEMY Foreign Language Faculty  GRADUATION THESIS CORPORATE CREDIT ANALYSIS AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM – THANG LONG BRANCH Student: Le Kieu Oanh Student ID: 12A7511130 Class: ATCB – K12 Lecturer: Tran Thi Hai Ly, M.A Hanoi, 28th May, 2013 STATE BANK OF VIETNAM BANKING ACADEMY Foreign Language Faculty  GRADUATION THESIS CORPORATE CREDIT ANALYSIS AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM – THANG LONG BRANCH Student: Le Kieu Oanh Student ID: 12A7511130 Class: ATCB – K12 Lecturer: Tran Thi Hai Ly, M.A Hanoi, 28th May, 2013 Graduation thesis Foreign Language Faculty DEDICATION I dedicate this report to my family, especially my father who has supported me since the first day of my internship and my mother who has sacrificed more of her time so that I could have mine to complete the thesis. Graduation thesis Foreign Language Faculty ACKNOWLEDGMENTS This thesis would not have been completed without the help, support and guidance of many individuals. I would like to express my most sincere gratitude towards each one of them. Tran Thi Hai Ly, Lecturer of Foreign Language Faculty, Banking Academy of Vietnam for the instructions and advice in the writing process.

I would like to thank Ms. Tran Thi Hai Ly for her time and effort in correcting my thesis in spite of the shortage of time she had. Ngo Thai Duong, Deputy Head of Corporate Banking II, JSC Bank for Investment and Development of Vietnam – Thang Long branch for the kindness and generosity he offered during my internship period at his office. I would like to express my heartfelt thanks to the precious documents and knowledge in financial statements, corporate credit analysis process… he shared throughout the short two months.

Those useful materials provided by him are of invaluable information to me not only in the writing process but also in the long term future. To all the staff members of Corporate Banking II department, JSC Bank for Investment and Development of Vietnam – Thang Long branch, I am greatly thankful to Ms. Tuan, and Mr. Viet for providing me with comfortable working condition and valuable reference documents so that I could finish the report.

I wish to express my gratitude towards each one of them for letting me be a part of their work and for treating me like I was a little sister. Last but not least, I would like to thank my family and friends for their significant support during my writing process. With their trust and encouragement, I could find the strength to keep going on my way. Thank you for all.

Graduation thesis Foreign Language Faculty TABLE OF CONTENTS DEDICATION. ii TABLE OF CONTENTS. iii LIST OF EXHIBITS AND TABLES. vi LIST OF ABBREVIATIONS.

vii EXECUTIVE SUMMARY. The significance of the study. Aims and objectives of the study. Scope and subject of the study.

Structure of the thesis .1 Bank credit and the roles of lending to business customers .2 Types of credit to business customers .3 Roles of bank credit to enterprises in the economy .2 Corporate credit analysis at commercial banks.1 Definition of credit analysis .2 Objectives of corporate credit analysis at commercial banks .3 Contents of credit analysis in business credit operation .1 Sources of information for credit analysis .2 Contents of corporate credit analysis – the 6Cs + 1P .5 Factors affecting corporate credit analysis operation at commercial banks 13 Graduation thesis Foreign Language Faculty 1.15 THE INTRODUCTION OF JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM – THANG LONG BRANCH .1 The establishment and development of Bank for Investment and Development of Vietnam – Thang Long branch .2 Organizational structure of BIDV JSC Thang Long .3 Performance analysis by business at BIDV JSC Thang Long .1 Fund mobilization operation .2 Performance of banking services .22 ANALYSES AND FINDINGS.1 Current situation of corporate credit analysis at JSC Bank for Investment and Development of Vietnam – Thang Long branch .1 Credit analysis process at BIDV JSC Thang Long .2 Some remarks on the effectiveness of corporate credit analysis operation at BIDV JSC Thang Long .2 Illustration to corporate credit analysis operation .3 Evaluation on corporate credit analysis operation at BIDV JSC Thang Long 34 3.2 Drawbacks and causes .38 SOLUTIONS TO IMPROVE CORPORATE CREDIT ANALYSIS OPERATION AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM – THANG LONG BRANCH AND RECOMMENDATIONS TO AUTHORITIES .1 General orientation for credit analysis operation at BIDV JSC Thang Long 38 Graduation thesis Foreign Language Faculty 4.2 Solutions for improvement of corporate credit analysis operation at BIDV JSC Thang Long .1 Improvement of the credit analysis personnel in terms of quantity and qualification .2 Equitable organization and administration of credit analysis operation .3 Upgradation of information quality to ensure accuracy, sufficiency and timeliness of information.4 Application of information technology into corporate credit analysis, especially modern computers and specialized software.5 Solutions to collateral valuation.6 Development of standardized system to evaluate the effectiveness of corporate credit analysis process .3 Recommendations to authorities .1 To the Government .2 To related ministries, sectors and offices .3 To the State Bank of Vietnam .4 Recommendations to BIDV JSC .49 Graduation thesis Foreign Language Faculty LIST OF EXHIBITS AND TABLES Exhibit 2.1: Organizational structure of BIDV JSC Thang Long .2: Credit structure by types of customers .1: Flow chart of credit analysis process at BIDV JSC Thang Long .2: Overdue loans in corporate lending.1: The result of fund mobilization by structure 2010-2012 .2: Net gains from banking services 2010-2012 .3: Result of credit operation 2009-2012 .1: Income Statement for Alpha JSC, 2010-2012 .2: Balance Sheet for Alpha JSC, 2010-2012 .2: Balance Sheet for Alpha JSC, 2010-2012 .4 Business plan for Alpha JSC in 2013 .5: Credit scoring for Alpha JSC by BIDV JSC Thang Long. 33 Graduation thesis Foreign Language Faculty LIST OF ABBREVIATIONS Joint Stock Commercial Bank for Investment and Development of BIDV JSC Vietnam Agribank Vietnam Bank for Agriculture and Rural Development VNPT Vietnam Posts and Telecommunications Group EVN Vietnam Electricity Alpha JSC Alpha Joint Stock Company ROE Return On Equity ROA Return On Assets ROS Return On Sales COGS Cost Of Goods Sold EBIT Earnings Before Interest and Taxes EBT Earnings Before Taxes NPL Non-Performing Loans NWC Net Working Capital CIC Credit Information Center IMF International Monetary Fund e. for example, etc. et cetera Graduation thesis Foreign Language Faculty EXECUTIVE SUMMARY The primary goal of this research is to provide a comprehensive understanding of corporate credit analysis process and its crucial role in mitigating credit risk at commercial banks.

Through its four major chapters apart from the introduction and conclusion, the author pursues this goal by presenting an overview of the process theoretically, providing an insight into the situation of implementing the procedure at BIDV JSC Thang Long branch to finally offer solutions and recommendations to authorities in order to improve the effectiveness of the operation. In chapter I, theoretical framework of credit analysis is mentioned as the basis for the research. In this chapter, readers are provided with fundamental knowledge of corporate credit analysis including definition, classification, objectives, contents of analysis operation, and factors affecting effective corporate credit analysis. In chapter II, the researcher gives an overall introduction to Joint Stock Commercial Bank for Investment and Development of Vietnam – Thang Long branch and its performance analysis by business.

In chapter III, the researcher draws analyses and findings to corporate credit analysis process at Joint Stock Commercial Bank for Investment and Development of Vietnam – Thang Long branch. Illustration to the real procedure is presented to demonstrate how it works. Finally, in chapter IV, solutions and recommendations are proposed to improve the effectiveness of credit analysis operation at Thang Long branch. Graduation thesis 1 Foreign Language Faculty INTRODUCTION 1.

The significance of the study Commercial banks are important entities to an economy in general and to financial market in particular; they facilitate a healthy economy. Hence, the development of commercial banks shall be considered as one method of measuring the health of an economy. A soaring banking industry signals a strong economy and vice versa. For most people in commercial banking, lending represents the heart of the industry.

Profit generated from this activity takes up 65% to 80% total profit banks receive. Credit quality is paid special concern, which banks actively invest in both human resources and technologies to enhance. Lending can be profitable on the one hand, but on the other hand, it is exposed to significantly high risks: credit risk when customers fail to make payments or risks caused by business environment, all of which can lead to capital erosion for banks. Accordingly, enhancing credit quality is of critical importance.

However, this represents a great deal of problems to cover; thus, within the scope of this study, the author would like to take into consideration the stage where banks perform credit analysis to corporate customers – a crucial stage when credit decisions are made based on appraisal of business plans, investment projects… Therefore, on a practical and theoretical basis, the topic the author decided to cover is "Corporate credit analysis at Joint Stock Commercial Bank for Investment and Development of Vietnam – Thang Long branch". Aims and objectives of the study As important as corporate credit analysis is to commercial banks, there is still much confusion about how the process actually works. For that reason, this research is aimed at providing readers with theoretical framework on corporate credit analysis of commercial loan requests. In addition, the researcher analyzes current situation of credit analysis operation at BIDV JSC – Thang Long branch to present general assessment and findings on strengths and weaknesses of the branch and gives reasons Le Kieu Oanh ATCB – K12 Graduation thesis 2 Foreign Language Faculty to limitations found.

Finally, the researcher offers solutions to enhance credit analysis operation at BIDV JSC – Thang Long branch and proposes possible recommendations to authorities. Scope and subject of the study This research studies the operation of corporate credit analysis at BIDV JSC Thang Long, Hanoi in a four-year period from 2009 to 2012. The reason for choosing this specific period is because it meets these following standards: the duration of four years helps collect sufficient information; data from 2009 to 2012 are more updated than from 2008 backwards; and sources of information in this period are more available and reliable for the researcher to collect. Research methodology Throughout the thesis, the author has used several methods including observing daily operations at BIDV JSC Thang Long, interviewing bank officers.

Data presented in the case are collected from financial statements and analyzed by various methods: statistical method, comparison method, trend analysis, industry comparison 5. Structure of the thesis This thesis consists of four main chapters besides introduction and conclusion: Introduction Chapter I: Theoretical framework Chapter II: The introduction of Joint Stock Commercial Bank for Investment and Development of Vietnam – Thang Long branch Chapter III: Analysis and Findings Chapter IV: Recommendations for improvement of credit analysis operation at BIDV JSC Thang Long Conclusion Le Kieu Oanh ATCB – K12 Graduation thesis 3 Foreign Language Faculty CHAPTER I THEORETICAL FRAMEWORK To better understand the concept of corporate credit analysis, it is necessary that readers have a general interpretation of bank credit and the roles of corporate lending to business customers in an economy.1 Bank credit and the roles of lending to business customers 1.1 Bank credit Even though "credit" is commonly mentioned in banking terminology, there is yet any definition for what exactly "credit" is. Deriving from the word "credo" in Latin which means "trust, and confidence", the meaning of "credit" varies depending on specific contexts that it is stated.