INTERNATIONAL EXECUTIVE MASTER OF BUSINESS ADMINISTRATION PROGRAM THESIS MBA “SOLUTIONS TO IMPROVE CREDIT QUALITY AT TOAN CAU OIL & GAS JOINT STOCK COMMERCIAL BANK - DONG DO BRANCH” DECLARATION OF AUTHORSHIP HANOI, JULY- 2013 I declare that the thesis is my own work and have been generated by me, all the data and results in the thesis is clearly attributed I state all the confirmation ABBREVIATIONS GP.Bank: Global Petro Bank PGD: Branch TMCP: Commercial Joint stock TCTD: Credit agencies NHTM: Commercial Bank NHNN: State Bank HĐQT: Board of Management (BOM) CNH-HĐH: Industrialization, modernization TNHH: Limited company Thuế VAT: Value added tax CIC: Centre for Information Credit KTXH: Economical Social NQH: Overdue debt Thẻ ATM: Automated Teller Machine CBNV: Staff TABLE OF CONTENT OPENING .9 The necessity of thesis Aims of the thesis 10 Source materials and scope of study .10 Methodology 11 Structure 11 Chapter I: General Introduction .11 1 Concept of corporate strategy .11 1.1.1.Concept of strategy 11 1.1.2 The role of strategy .13 1.2 External environment analysis 14 1.2.1 Macro environment analysis (PEST analysis) .14 1.2.1.1 Political Analysis 14 1.2.1.2 Economic Analysis 15 1.2.1.3 Social Analysis .15 1.2.1.4 Technological Analysis 16 1.2.2 Industry analysis (5 forces of Michael Porter) 16 1.2.2.1 Supplier Power .16 1.2.2.2 Buyer Power 16 1.2.2.3 Barriers to entry 17 1.2.2.4 Competitive Rivalry 18 1.2.2.5 Threats of substitutes 18 1.3 Micro environment analysis 18 1.4 Basic concept of banking credit 18 1.4.1 Concept and features of banking credit 18 1.4.2 Types of banking credit 19 1.4.3 Roles of banking credit 21 1.5 Theory of banking credit quality 23 1.5.1 Concept of banking credit quality 23 1.5.2 Indicators of banking credit quality .24 1.5.2.1.Qualitative indicators .24 1.5.2.2 Quantitative indicators 25 1.5.3 Factors that affect banking credit quality 28 1.5.3.1 Factors from customers 28 1.5.3.2 Factors from banks 30 1.5.3.3 Business environment .33 Chapter 2: The situation of credit quality at GP Bank - Dong Do Branch .34 2.1 Overview of GP bank-Dong Do Branch 34 2.1.1.History and development .34 2.1.2 Network 35 2.1.3 Function and mission 36 2.1.3.1 Director 36 2.1.3.2 Vice directors 36 2.1.3.3 Departments and transaction offices .37 2.1.3.4 Board of Credit .39 2.1.4 Function and mission of Dong Do Branch in GP Bank network 39 2.2 The business profile of Global petro bank - Dong Do Branch in the recent years 40 2.2.1 Capital mobilization 40 2.2.2 Lending and capital investment .41 2.2.3 Services 42 2.2.4 Business results .43 2.2.5 The situation of credit quality .44 2.2.5.1 Some regulations about credit activities 44 2.2.5.2 Credit quality 46 2.3 Analyse the business environment at GP Bank - Dong Do Branch .54 2.3.1 Macroenvironment (PEST++) .54 2.3.1.1 Economic Analysis 54 2.3.1.2 Political Analysis 55 2.3.1.3 Cuture – socio analysis 55 2.3.1.4 Technology analysis 56 2.3.2 Industry analysis 56 2.3.2.1 Buyer power 56 2.3.2.2 Supplier Power .58 2.3.2.3 Competitive Rivalry 59 2.3.2.4 Barriers to entry 59 2.3.2.5 Threats of subsitutes .60 2.3.4 Opportunities and threats 61 2.4 Micro environment analysis at Dong Do Branch 62 2.4.1 Human resource analysis 62 2.4.1.1 Human resource 62 2.4.1.2 Finance 63 2.4.1.3 Technical facility 63 2.4.1.4 Technology .63 2.4.2 Strengths, Weaknesses (S,W) 64 Chapter 3: CONCLUSION AND SOLUTIONS TO IMPROVE THE CREDIT QUALITY AT GP BANK - DONG DO BRANCH 65 3.1 Conclusions from the case of credit quality at GP Bank - Dong Do Branch 65 3.1.1 Achievements 65 3.1.2 Limitations 66 3.1.3 Causes 67 3.2 The oriented activities of credit in GP bank - Dong Do Branch 69 3.2.1 The orientation to develop the credit activity at Dong Do Branch 69 3.2.2 Expected results 70 3.3 Some solutions to improve the credit quality of GP Bank - Dong Do Branch71 3.3.1 Capital mobilization to improve credit quality 71 3.3.2 Improving credit policies contribute to the credit quality improvement 71 3.3.3 Diversification of the customer, reasonable customer strategy .72 3.3.4 Complete the credit process 73 3.3.4.1 Analyse, evaluate accurately customers: 73 3.3.4.2 Improving the quality of evaluation 73 3.2.4.3 Lending decisions must be based on identifying and understanding the borrower 74 3.3.4.4 Building inspection systems, credit monitoring performance: 75 3.3.4.5 Strengthening the debt management and overdue debt settlement 75 3.4.5 Differences to compete 76 3.3.6 Other solutions 77 3.3.6.1 Maketing strategy 77 3.3.6.2 Develop and use reasonable use of reserve fund .78 3.3.6.3 Supervising and monitoring 78 3.3.6.4 Moderization to improve credit quality 79 3.3.6.5 Information of customers 79 REFERENCES 79 LISTS OF TABLE AND CHARTS Chart2.1.Organization structure of GP Bank - Đông Đô Branch…………………………36 Table 2.1: Debt financing situation 40 Table 2.2: The lending and debt collection situation 42 Table2.3: Business activiy result 43 Chart 2.1: The short term, middle and long term credit structure 47 Chart 2.2: Economic classification structure 48 Chart 2.3: Pledged asset classification credit structure 49 Table 2.5: Outstanding overdue debt .50 Đồ thị 2.4: The overdue debt ratio at branch 50 Table 2.6: Overdue debt classification 50 Table 2.7: Credit cycle 52 Table 2.8: Incremental Capital Output Ratio 53 table 2.9 : Revenue from credit activity 53 Chart 2.5: Revenue from credit activity shown by chart 53 10 Weaknesses (W) Do not have a cohensive business strategy The marketing activity is not good Linit in financial ability Risk management activity is nor good Few transaction offices CHAPTER 3: CONCLUSION AND SOLUTIONS TO IMPROVE THE REDIT QUALITY AT GP BANK- ĐONG ĐO BRANCH 3.1 Conclusion from the case of GP bank Dong Do Branch 3.1.1 Achievements Credit activity has played an important part in the success of the branch operations * The results are as follows : - Sales of loans and total loans continued to increase over the years - Credit grows not only in size but also ensures the quality, delinquency rates remain low and under control of the allowed rate - Revenues from credit operations, although the proportion is not as high as expected but there has been a steady and solid growth - Structure to ensure proper credit, according to the credit policy of GP.Bank * Successful Experiences - The credit -oriented focus on the retail market is absolutely correct and consistent with the intrinsic capacity of branches and market developments, limit credit and disperse risk Along with traditional lending service, the branch also advocates promoting consumer loans with higher interest rates to buy houses and property purchases for the rich in urban, so consumer loans has been increasing and takes high proportion of the total outstanding debt, safety and efficiency quality - Branch has good customer strategy, customer classification regularly to get preferential interest rate policy, appropriate fees , organizing seminars and remove difficulties for 61 enterprises , in addition, closely held areas situation , early detection of problem loans to timely remedial measures , to minimize delinquency arises - Professional staff, willing to learn, be able to meet the requirements of the work process, and regular training to continuously improve their professional capacity 3.1.2 Limitations: Besides many achievements, the credit activity still exists some problems: - Scale of credit has grown relatively good, but not commensurate with the capacity to mobilize capital abundant branch, capital ratio in the recent time has not reached 50 % of total mobilized capital, leads to significant surplus capital to raise swap funds - Judgment of branch credit is limited, the maximum loan is billion per customer, outstanding loans and guarantees is billion per customer, and the reevaluation mechanism credit approval of the Headquarter is too complex that reduced the ability to reach customers, especially the project loan plan excess judgment - In terms of credit, loans in foreign currencies is too small compared to the total outstanding debt, foreign exchange services and international payment has not been promoted Besides, raising funds with a term longer than 12 months at the branch is negligible, short-term funding is usually from 01 months to 06 months for medium and long term, this interferes the ability to grow middle and long term credit at the branch - Policy implement of products and services diversification is unsatisfied, at the branch, only lending service is supplied, while very limited exploitation of other products such as credit guarantee, overdraft, factoring and discounting documents In addition, bank marketing activities has not been paid enough attention due to the dependence thought of GP.Bank headquarters, the promotions, the gadget comes less attractive, limited to the promotion, customer attract - Staff are young , highly qualified, but the productivity is not high, not cohensive, experience with introducing and selling banking services are limited, officials merely serves customers traditional credit services (loans, interest), not actively 62 persuades customers to use the accompanied services of banks such as payroll accounts, electronic banking services, overdrafts account 3.1.3 Causes The above achievements and limitations due to many reasons, including the subjective and objective reasons * Objective causes: - About the business : The main reason is due to customer confusion in the direction of investment choices, not fewer clients and projects, business plans did not meet the credit conditions, in detail: + There is no feasible projects : To meet credit conditions, the branch must select project, feasibility plan, built on a scientific basis, full information, analysis and evaluation of the form correctly, so the projects must be studied carefully It can only be done by experienced professionals responsible for development and evaluation In fact, the majority of projects and schemes were built by the customers themselves, not enough necessary information + Not enough equity participation projects: A number of organizations and individuals in need of loans for investment projects, production plans, however, lower equity participation, unsatisfactory, creating a major obstacles when evaluating and approving loans + Not eligible for collateral: The demand for capital to expand production and business enterprises are often relatively large declaration , while security assets in land , housing values not match , or the plant , machinery and equipment built on leased land annually should not pay the price for the value of land use rights lease On the other hand, the proportion of loans secured on assets such as factories, machinery and equipment in accordance with the regulations of GP.Bank is very low and significantly affect the consideration of the loan amount + Capacity to manage and operate the business of many business owners did not meet requirements, they focus on the profit without paying much attention to the risk management Safety factor in using the loan will therefore be affected 63 -Business environment : + Because the domestic economy is unstable , influenced by the global economic slowdown inflation should have impact not only difficult for the banks now that both systems; business losses, stagnation, increase the risk of bankruptcy Activity bank credit is difficult, since late 2011 has appeared debt-remove widespread + Bank competition becomes increasingly fierce, to reach and maintain good customer, in many cases, not just lowering interest rates but also reduce profits to lower the credit conditions potential risks are unavoidable + Policies and mechanisms for macroeconomic management of the State has been gradually perfected However, implementation met a lot of difficulties due to the number of documents, some are asynchronous Also in credit activities , the regulatory environment has obstacles, such as the implementation of the ordinance on accounting and statistics is not serious, majority report of small and medium enterprises has not yet been audited, data reflects dishonesty, the support of the law enforcement agencies have not drastically when the dispute arose, proceedings, has created psychological conservatively for officials working in credit * Subjective causes: The observance of rules and regulations for loans in many cases is not serious , stage performance gap is much , much depends on the subjective assessment of customer relations specialist , proposed many cases lenders while the low equity participation , project , plan loans low economic efficiency , the control checks for loans also carry the deal Inspection after the loan has not been close, with the case of loans used for the wrong purposes, but not proposed withdrawal before maturity - The arrangement of staff, the stability of personnel working in the banking environment is an issue to pay attention, in addition, organizational model of credit operations at branch does not split into business customers and individual customer base, so the level of professionaland specialized for customer service is not high - Professional guidance, capacity investigating, control of the professional departments at GP.Bank headquarter is loosen 64 3.2 Orientation activities at GP Bank - Dong Do Branch 3.2.1 The development of credit activity at Dong Do Branch We can say the credit activities of banks system depends greatly on the thermometer of the economy, macroeconomic stability, the development of credit operations in a good way , and vice versa will have problems The current period and in subsequent years, the repercussion of the economic crisis is still ongoing , the economy unpredictable , not enough to facilitate the implementation of monetary policy loosening Government and the central bank is actively accelerating the process of restructuring the economy, restructuring the banking system but the focus is to arrange and structure the healthy banks to banking activities , reducing the number of small banks weak liquidity , capital raising and scale of total assets , ensuring competitive not only locally but also in the region Capital needs of the economy are still very big targets for modernization, business environment, the legal environment is increasingly being improved to create the conditions to encourage all economic sectors to invest capital production business Besides the demand for residential housing, vehicles with growth factors will be advantageous to expand lending The level of competition among banks increasingly fierce, although the financial situation is not really healthy, production capacity is limited, the capital needs of the largest economies in the pressure capacity to use investment capital to dominate the credit should appear competitive situation 3.2.2 Expected results - To maintain a high growth rate of capital mobilization initiative to ensure funding for the activities Exploiting the strength of the network of affiliated transactions room to increase the proportion of savings in funding structure ensure the stability of the solid mobilization and strive to 2015 , capital mobilized 4,500 billion - Growth in credit to the motto safety and effectiveness Continue oriented retail credit , focus on customers and small medium enterprise , private individual , household and consumer demand service life of the affluent in urban centers Diversification of credit 65 products and services , in addition to traditional products to expand care products , other utilities to maintain , attract more customers and increase income Striving to 2015 loans reached 3,000 billion Delinquency rate control below the % of total loans - Network operation : determine if this is an important factor for the operation of retail banking However , not necessary to expand the network in phases economy is tough now , but should focus on strengthening trade under the 09 rooms is to improve the quality and scale of operations When macroeconomic conditions really advantageous to continue establishing new trading room to expand market share , and strive to 2015, a network of branch transactions including 01 branch and 12 transaction office - Promote the development of banking services Close coordination between the payment and banking services , credit work , working capital management and business exchange to facilitate enhanced business results - Bank Profits : Increase over the years and reached 60 billion in 2015 - Training staff retraining adjacent development to meet the needs of the next year , regular professional training to improve qualifications for staff working in credit to better serve the mission assigned 3.3 Solutions and recommendations to increase the credit quality at GP Bank - Dong Do Branch 3.3.1 Capital mobilization to improve credit quality To extend the credit market, there must be two elements : the capital and initiative to attract more borrowers Currently, the capital of the state branches is abundant, actively meet credit growth However, to achieve the highest efficiency in business operations should have a reasonable capital structure, stable and solid Diversifying forms of funding to attract idle capital in the population, as well as basic objects, ensures long-term stability Innovation must raise capital structure by increasing the proportion of the population to mobilize savings, it is necessary to expand the forms of mobilization such as bonds, debentures, retirement savings, savings contribute posts, saving reward The interest rate, tenor and other gadgets to rich with purpose to attract more customers to send money Besides the need to promote forms of save more than 12 66 months , to issue bonds to increase the balance and proportion of the medium-term , paving the way for promoting the long-term loans 3.3.2 Improving credit policies contribute to credit quality improvement Credit policy should focus on the following issues : - Diverse forms of loans to meet the capital needs of borrowers Innovation, complete , consistent with the change process and production needs of the consumer loans as well as the economy , create convenience to attract customers Innovation perspective , policies and measures for adaptation to reality loan market , however, important to consider the risk factors , assign responsibility to ensure safe credit - In the near future , in addition to traditional forms of lending to meet business needs , buying houses , buying cars also extended loan products villages , household economic development side , evidence study proving financial , bank guarantees , loans through the issuance of credit cards to provide high efficiency and diversify risks - Promote the medium and long term foreign currency loans to ensure proper credit structure , so policies need to prioritize investment projects lend depth , expanding production machinery import loans equipment , raw materials and export business with revenues in foreign currencies strengthen loans , home repair , car purchase vehicles travel on the part of the population in affluent urban , because this is the segment of the market is safe Regarding the structure of the industry, has focused on industrial and commercial sectors , and a number of service sectors are government priorities such as supporting business exports , small and medium enterprises , industry support - Flexible interest factor: For interest rate loans, issuing minimum lending rate by CEO GP.Bank from time to time to apply across the system, which allows the preferential branch falls below a minimum certain percentage in order to perform customer policy In fact , based on the direction of interest rates and interest rate GP.Bank low input not recognized as capital conditioning , affiliates need to build a reasonable interest rate policy to ensure competition , applies preferences for traditional customers or customers who use the bank's services and build more interest rate consistent with risk levels of 67 different criteria such as time borrowing short-term or long -term , purpose business loans or for consumption ; mortgage loan or collateral 3.3.3 Diversification of the customer, the customer made a reasonable strategy Strategic customers always have an important place for each bank , making customer strategy and implement that strategy is needed , in which customers are considered the most important factor to ensure the success and development of the banking and business performance of our customers is the effect of bank credit Customer strategies need to be developed based on the views of business cooperation deeper on the basis of immediate economic benefits and long term strategies identified to have customers increasingly close relations For this , it is necessary to strengthen local search abreast customers , understanding customer needs , with appropriate advice and supply products on the principle of equality , development cooperation for mutual benefits Simplify procedures for conditions possible, so customers not take much time waiting for that missed business opportunities , development must be linked to credit and capital maintenance efficiency credit Pursuant to the credit policy for each period and forecasts about the prospects of occupations by GP.Bank to credit the appropriate orientation , prioritizing capital for profitable trades , safety , faster recovery of capital lending restrictions to slow capital recovery areas , high risk 3.3.4 Complete credit process Should be taken seriously and steps full of rules , processes credit , put the safety factor , the effect on the top 3.3.4.1 Analysis , accurate assessment of borrowers : Analysis , accurate assessment of the legal status of binding customers to their responsibilities under the law and protect the legitimate rights and interests of the bank , the analysis of financial capability , qualifications , reputation , experience and ability to produce operating business of business leaders , the individual whose name 68 is on the business registration to provide objective assessment for the proposed credit 3.3.4.2 Improving the quality of evaluation Theory and practice show that the evaluation is taken seriously , then the credit quality improved greatly , reducing the risk of subjective factors Basic contents of credit evaluation focused on the following two key issues: - Customer and loan schemes to meet the conditions for borrowing and lending in accordance with the principle of credit institutions , to ensure the recovery of principal and interest on time - Profile loan procedures must be complete and valid , in accordance with legal regulations , if there is a dispute , the proceedings must be legally safe for banks Depending on the specific borrowing requirements, professional customer should identify the content and assessment methods appropriate to meet the time requirements To improve the quality of appraisal requires expert customers and staff involved in the evaluation must be highly qualified , each officer should specialize in one or more specific areas such as construction , trade in each commodity , mining for the nature of the project expertise in an industry , a sector specific professionals that clients can not grasp how thoroughly they should invite experts staff with experience in the field of industry or technical support or independent verification The clear division of work will be carried out smoothly , workers were exposed to cumulative projects would be more rewarding experience Proficiency in performing the evaluation of the professional staff will help shorten the evaluation period and most of all improve the quality of evaluation work 3.2.4.3 Lending decisions must be based on identifying and understanding the borrower Understanding and evaluating borrowers need to be considered, in many ways, which is to ensure confidence in the borrower pays relations , ensuring the conditions for loans to qualified legal , financial capability to use of borrowing and 69 repayment in full and on time , and also to develop contingency plans to pay the debts of the client To avoid the risk of default of the loan, the customer must be based on the loan security measures There are many types of loans such as secured by pledged collateral or third party guarantee, secured by assets acquired from loans in the trust and mutual credit relations 3.3.4.4 Building inspection systems , credit monitoring performance : Check the monitoring does not only loans information capture , monitoring and timely updates of information on the use of the loan , the operational status of the customer, which is most significant to detect and prevent risks risk In fact this work has not been enough attention , many fraud cases , appropriating money bank credit risk derives from the cause by not doing a good job monitoring the loans To contribute to improving credit quality, need to better the following issues : - Develop test systems , monitoring loans , timely grasp the use of loans and the performance of customers to make sure that the loan is used for the right purpose , viable loan plan , the ability of customers to repay guaranteed It should clearly define the functions and responsibilities of each person , each department and work to be done in order to improve work efficiency - Must have programs and specific test plan, regular and irregular After a prescribed period from the date of the loan must be examined using the customer's loan , expressed as inspection reports on the use of the inherent purposes of the credit agreement or not , the implementation plan loans , collateral status , customer difficulties and proposed solutions 3.3.4.5 Strengthening the debt management and overdue debt settlement Credit quality is reflected in the rate of bank term debt To properly address the recovery of overdue debts will improve business efficiency - For overdue loans still finds the ability to sustain operations and repay conscious , can solve the following directions: 70 + Extension of term debt or debt adjustment in case the customer does not have the ability to pay bills on time , but is considered temporary difficulties and request bank debt restructuring + More loans or customer support conditional reorganization and recovery business to generate income and financial ability to pay debt Where customer losses in business due to objective reasons of force majeure such as natural disasters, epidemics, mechanisms and policies of the State, or customers have the ability to rise up and overcome the difficulties and the gradual repayment may consider partial or complete reduction of overdue interest for the borrower - For overdue loans are evaluated without the ability to recover, no other way to implement remedial measures to ensure the property to recover the debt Branch and informed customers handover request collateral or guarantor required to pay the obligation The transfer of assets can be secured by the bank in cooperation with the customer or authorized sales centers auction in accordance with the law For security asset of great value , it can be the collateral to replace the debt obligations of its customers 3.4.5 Make differences to compete In all areas , the human is always the deciding factor The quality assurance credit first came from the professional team of customer Expert clients daily exposure to and professionally process involves many clients faced with temptation , there are many opportunities for personal benefits for himself , so it must be carefully selected , quality good moral concern education and training regularly For staff working arrangements , the current branch assignments for professional clients only on the basis of the number of customers , debt levels A loan made for many customers , many professions , different areas of specialization so that no high or medium for a business loan , personal loan just will not promote excellence and his experience , not understanding customers deeply , so to restructure professional team of customer towards specialization , right people to 71 maximize each person's forte , in addition to planning , competency assessment and appointed officials to strive to motivate and create loyalty with banks and diligent in their work Continuously improve, enhance professional knowledge for clients and professionals who work credit , organize additional training knowledge , must be linked with practical reasoning can apply officials knowledge in a flexible and creative in practice On the other hand, a team of customer should be equipped with the knowledge of law, market, economic, industry, and often rectify ethical, professional behavior, labor discipline, especially in cultural communication with customers All of these measures is to improve the quality of human resources, contributes to the credit quality improvement of the branch 3.3.6 Other recomendations 3.3.6.1 Building Marketing Strategies for banks Market orientation has become a prerequisite in the business of commercial banks today Therefore, the binding activity between banks and markets as market research to discover business opportunities, identify threats, internal research to find out the strengths and weaknesses, to decide success or failure of business operations The bank has a market associated with higher probability of success larger and vice versa, the need for strategic planning Marketing Currently, local banks are often faced with stronger competition and more experienced overseas , GP.Bank general and particular branch Dong is not the exception, so to viable and developers need to step up marketing activities to promote the brand , promotional products utility services , especially electronic banking platform built on modern technology , to produce the service closer to the customer , ensuring fast , convenient , useful and acceptable to customers become partners , customers regularly 3.3.6.2 Develop and use reasonable reserve fund 72 Risk of credit operations is also an objective necessity , beyond the subjective reasons creates risk , there are objective reasons caused , even to the severe consequences Distributed risk is a proactive solution and prevent positive outcomes can occur with large branches The risk distribution is done through loans dispersed, not concentrated too much capital for a borrower , or not investing much capital into the industry slowly recovering capital and sensitive Orientation credit subsidiary focusing on the retail segment was partially meet requirements diversify risks The problem of formulation and processing reasonable reserve fund is a necessary measure to improve credit quality at the branch Reserve for credit losses is established must be based on an expected risk costs deducted in advance to make the credits , this way making the reserve for credit losses reflect the nature of it : Risks associated with business , through accounting to reflect the costs incurred in the course of business The determination of the amount appropriated funds based on classified data about your debt each quarter shall set a time basis using offset credit and operational risks 3.3.6.3 Investigating and supervising This important work contributes to the safety and operational efficiency through the credit check, control findings of violations, errors for timely remedial measures Branch should continue to complete the inspection and control under the following directions : - To assist the Board of Directors the implementation of internal control in the regulation of GP.Bank; periodic or unscheduled inspection , monitoring the execution of business processes, regulation of business activity, check the compliance of banking laws and regulations of the State Bank, the provisions of GP.Bank - Through the investigation, assessment to improve safety of operations , and to suggest additional, edit documents, regulations GP.Bank, irrational potential risks 3.3.6.4 Modernizing banking technology for credit operations 73 Continued implementation of innovative banking technologies because technology is leveraged by the development, as a condition for integration into the branches of the economy in general and the financial sector , in particular the world Modernizing banking technology to improve service quality, to meet the needs and improve the management of branch competitiveness Along with upgraded technology, to exploit the benefits of software for building systems products and services with high superiority, especially the e-banking service, not just competitive but also to make a difference compared to the competitors 3.3.6.5 Building credit information system Information is "material" for every decision, if there is not enough information, the decision will not be accurate and timely To better meet the credit activities, the bank should build a system database contains information rich , useful , enabling all staff to work can access credit to support best service for the assigned work Planning a department responsible for collecting, analyzing and forecasting macroeconomic news, daily updated information about customer relationships with banks, economic news , market , legal , guidance documents from the central bank , GP.Bank, resources have to be very diverse , collection and screening of new channels to the richness and quality On the other hand, the data warehouse shuold be sorted, categorized logically so as to search easily for different purposes and use in different situations 74 REFERENCES Dr Ho Dieu (2002) Bank Credit, Statistical Publishing House, Hanoi Prof, Dr To Ngoc Hung (2008) “Management of Banking and Commerce”, Statistical Publishing House, Hanoi Prof Dr Nguyen Van Tien (2012), “Management of Banking and Commerce”, Statistical Publishing House, Hanoi Laws of State Bank of Vietnam, CIs; Regulations of Government on lending assurance Current credit law of State Bank of Vietnam; New rules on debt classification and loss reserve - State Bank of Vietnam Rules on credit and lending assurance of Gas and Petro Commercial Bank Financial Report, Business Performance Activity Report of GP bank - Dong Do Branch in 2010; 2011; 2012 website: http//www.gpbank.com.vn 75 ... for unique resources - Number of suppliers: determines the forces, negotiation to the field and enterprise 17 - Supplier switching costs relative to firm switching costs - Information of suppliers:... entry arise from several sources: - Patents and proprietary knowledge - Asset specificity – (Specialized technology or infrastructure) - Economies of scale - Government, stakeholders 18 Exit... the following content: - The basic theory of business strategy, credit activities in commercial banks - Analyzing the real situation of credit quality at Gas Petro Bank - Dong Do branch, evaluating