TOPIC: IMPROVING CREDIT LIMIT SYSTEM IN VIETCOMBANK ACKNOWLEDGEMENT First of all I would like to express the profound gratitude to my supervisor Assoc.Prof.Dr. Nguyen Van Dinh for his valuable advice and comments on my research work. I am sincere thank to his for kindly accepting my proposal to be my supervisor. I am grateful to professors for giving me advices and comments from step of presenting outline of thesis. It is the column of helping me to complete successfully my thesis. I would like to give my special thanks to my colleagues at the working place, the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) – Thanh Cong branch for their valuable supports cooperation throughout my study. In addition, I would like to thank all professors in NEU Business School for their knowledgeable lectures, who have kindly given me their helpful feedback to my research and inspiring me to deliver the report today. ACKNOWLEDGEMENT 3 ABBREVIATIONS 4 LIST OF CHARTS 5 LIST OF TABLES 6 INRODUCTION 7 Chapter 1: THEORETICAL FRAMEWORKS ON CREDIT LIMIT AT COMMERCIAL BANKS 9 1.1 Bank Credit 9 1.1.1 Definition 9 1.1.2 Characteristics of bank credit 10 1.1.3 Roles of bank credit 11 1.2 Credit limit system in commercial bank 14 1.2.1 Definition of credit limit system 14 1.2.2 Roles of credit limit system 15 1.2.3 Basis for credit limit system 17 1.3 Factors effecting credit limit system in banks 26 1.3.1 External factors 26 1.3.2 Internal factors 28 Chapter 2: CREDIT LIMIT SYSTEM AT VIETCOMBANK 31 2.1 Overview of Vietcombank and its performance 31 2.1.1 Introduction to Vietcombank 31 2.1.2 Vietcombank’s major performance indicators 35 2.2 Credit activities at Vietcombank 37 2.2.1 Overview of credit operation at Vietcombank 37 2.2.2 Credit policies in Vietcombank 40 2.2.3 Credit activities 42 2.2.4 Types of credits 47 2.3 Credit limit system at Vietcombank 49 2.3.1 Structure of the system 49 2.3.2 Regulations of credit limit system 52 2.3.3 Procedure for approving credit limit 53 2.3.4 Process of determining the credit limit 54 2.3.5 Process for credit coring and rating customer at Vietcombank 60 2.4 Assessing credit limit system at Vietcombank 69 2.4.1. Advantages 69 2.4.2. Disadvantages 72 2.4.3. Causes 73 Chapter 3: PROPOSED SOLUTIONS TO IMPROVE CREDIT LIMIT SYSTEM AT VIETCOMBANK 76 3.1. Orientation of VCB’s credit activities 76 3.1.1. Orientation 76 3.1.2. Objectivities of VCB’s credit activities to 2012 76 3.2. Solutions to improve credit limit system at VCB 77 3.2.1. Improve structure of VCB 77 3.2.2. Improve credit policies 77 3.2.3. Improve credit scoring and rating 80 3.2.4. Improve information technology systems 80 3.2.5. Strengthen human resources 81 3.3. Recommendations 81 3.3.1. Recommendation to related agencies 81 3.3.2. Recommendation to the State Bank 82 CONCLUSIONS 84 LIST OF REFERENCES 85
