CREDIT AND HOUSING LOAN IN COMERCIAL BANK

TABLE OF CONTENTS

CHAPTER 1:. 1

OVERVIEW CREDIT AND HOUSING LOAN IN COMERCIAL BANK.. 1

1.1. BASIC CHARACTERISTICS OF CREDIT IN COMERCIAL BANK.. 1

1.1.1. The concept of credit 1

1.1.2. Classification of credit 1

1.2. CHARACTERISTICS OF HOUSING LOAN.. 2

1.2.1. Definition of housing credit 2

1.2.2. Roles of housing credit 3

1.3. RATIOS ANALYSIS AND EVALUATION OF QUALITY OPERATIONAL

EFFICIENCY OF HOUSING LOAN.. 4

1.3.1. Growth rate of loans (%). 4

1.3.2. Growth rate of loan sales (%). 4

1.3.3. Debt balance rate / Total capital (%). 5

1.3.4. Debt balance rate/ Working capital (%). 5

1.3.5. Debt recovery ratio (%). 5

1.3.6. Due debt recovery rate (%). 5

1.3.7. Overdue debt ratio (%). 6

1.3.8. Bad debt ratio (%). 6

1.3.9. Credit capital turnover. 6

1.4. FACTORS AFFECT ON HOUSING CREDIT.. 6

1.4.1 External factors. 7

1.4.2. Internal factors. 8

1.5. INTERNATIONAL EXPERIENCE ON EXPANDING THE HOUSING CREDIT

AND LESSONS FOR VIETNAM… 10

1.5.1. The international experience. 10

1.5.2. The lesson for Viet Nam: 14

CONCLUSION OF CHAPTER 1. 16

CHAPTER 2:. 17

SITUATION HOUSING LOAN OPERATION OF BANK FOR INVESTMENT AND

DEVELOPMENT OF VIETNAM (BIDV) NORTH SAI GON BRANCH – CU CHI

NORTHWEST TRANSACTION OFFICE.. 17

2.1. OVERVIEW OF BANK FOR INVESTMENT AND DEVELOPMENT OF VIET

NAM (BIDV) NORTH SAI GON BRANCH – CU CHI NORTHWEST TRANSACTION

OFFICE.. 17

2.1.1. Overview of Bank for Investment and Development of Vietnam North Sai Gon

Branch 17

2.1.2. The process of formation and development of BIDV – Cu Chi Northwest transaction

office 17

2.1.3. Structure. 18

2.1.4. Tasks and functions. 19

2.1.5. Operating activities situation of BIDV North Sai Gon Branch – Cu Chi Northwest

transaction office. 19

2.2. HOUSING LOANS OPERATION RESULTS AT BIDV- CU CHI NORTHWEST

TRANSACTION OFFICE.. 25

2.2.1. The situation of housing loan balance in the total loans. 25

2.2.2. Situation of housing loan’s debt recovery. 27

2.2.3. Situation of housing loan balance. 28

2.2.4. Analyze housing loan’s debt recovery ratio. 29

2.2.5. Analyze housing loan’s overdue debts situation. 31

2.2.6. Analyze housing loan’s bad debts situation. 32

2.2.7. Analyze housing loan’s capital turnover stituation. 34

2.2.8. Total outstanding loans / Total liabilities and owners’ equity (%). 35

2.3. HOUSING LOAN PERFORMANCE EVALUATION AT BIDV NORTH SAIGON

BRANCH – CU CHI NORTHWEST TRANSACTION OFFICE.. 37

2.3.1. Achievements and causes: 37

2.3.2. Restrictions and causes: 38

CONCLUTION OF CHAPTER 2. 41

CHAPTER 3:. 42

SOLUTIONS TO EXPAND HOUSING LOAN OPERATION AT JOINT STOCK

COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM

(BIDV) NORTH SAI GON BRANCH – CU CHI NORTHWEST TRANSACTION

OFFICE.. 42

3.1. MARKET OUTLOOK.. 42

3.2. ORIENTATION OF DEVELOPMENT HOUSING LOAN OPERATION AT BIDV

NORTH SAI GON BRANCH – CU CHI NORTHWEST TRANSACTION OFFICE.. 42

3.3. SOLUTIONS TO EXTEND HOUSING LOAN OPERATION AT BIDV NORTH SAI

GON BRANCH – CU CHI NORTHWEST TRANSACTION OFFICE.. 43

3.3.1. Building specific business strategies for housing loan. 43

3.3.2. Building and finishing catalogs for housing loans. 43

3.3.3. Diversification of housing loan methods. 44

3.3.4. Promote bank’s marketing. 44

3.3.5. Increasing the size of bank capital 47

3.3.6. Building more suitable housing loan policies. 49

3.3.7. Improving professional knowledge, service style as well as professional ethics of

bankers 53

3.3.8. Modernization of banking technology. 53

3.3.9. Risk prevention solutions. 54

3.3.10. Other solutions. 57

3.4. SOME PROPOSALS. 58

3.4.1. Proposals to the Government 58

3.4.2. Proposals to the State Bank. 61

3.4.3. Proposals to BIDV.. 63

CONCLUTION.. 65

CHAPTER 1:

OVERVIEW CREDIT AND HOUSING LOAN IN COMERCIAL BANK

1.1. BASIC CHARACTERISTICS OF CREDIT IN COMERCIAL BANK

1.1.1. The concept of credit

Credit is the form of the relationship between economic loans lenders and borrowers with

a certain number of constraints.

Credit for the content transfer the right to use funds from lenders to borrowers with some

certain conditions and after a period of time agreed upon before the lender will receive a

volume price nominal value greater than the initial value.

Bank credit is the credit relationship in which at least one entity is involved in banking.

According to Article 3 of the regulation of banks lending to clients dated December 31,

2001 issued by the Governor of the State Bank: Loan is a form of credit, delivery to the

customer to use an amount uses and purposes specified time as agreed with the principle of

repayment of both principal and interest.

1.1.2. Classification of credit

In the economy, credit market activities are varied and plentiful. Based on several different

credit facilities are classified into several categories, namely:

1.1.2.1. Based on the credit period:

– Short-term credit: A loan with a term of 1 year and often additional loans to temporary

shortages of working capital needs and for personal activities.

– Medium-term Credit: A loan with a term of 1 year to 5 years, are provided for purchase

of fixed assets, improvements and technical innovation, expansion and construction of the

small time maturity faster.

– Long-term credit: A loan with a term of 5 years, this kind of credit is used to provide

funds for the construction, improvement and expansion of large-scale production.

1.1.2.2. Based on object credit:

– Working capital credit: A type of loan is used to form the working capital of the

economic organizations, such as loans to stockpile goods, purchasing materials for

production.

– Fixed capital credit: A type of loan is used to form fixed assets.

1.1.2.3. Based on the intended use:

– Credit production and circulation of goods: The allocation of credit to businesses and

other economic entities to carry out the production of goods and cargo traffic.

– Consumer credit: The provision of credit form for individuals to meet the credit needs of

the individual.

– Learning credit: A credit forms to serve the school’s students.

1.1.2.4. Based on the actors:

– Trade credit: A credit relationship between the entrepreneur is expressed under the form

of buying and selling goods.

– Bank credit: A credit relations between banks and other credit institutions to

entrepreneurs and individuals.

– State credit: A credit relationship in which the state is manifested borrowers.

1.1.2.5. Based on the repayment object:

– Direct credit: A form of credit in which the borrower is also a direct payment.

– Indirect credit: A form of credit in which the borrower and the debt are two different

objects.

1.2. CHARACTERISTICS OF HOUSING LOAN

1.2.1. Definition of housing credit

Housing loan which the commercial banks allow their customers use loan for the purpose

of shopping, housing construction with a commitment to pay the full principal and interest

to the bank.

Currently, housing loans are often categorized as one of the activities of commercial banks’

consumer lending. Consumer loan is a form of financing for the purpose of consumer

spending, including individuals and households. Consumer loans are important financing

can help consumers cover the needs of life such as housing, transportation, education,

tourism, shopping … before they can afford to financially benefit.

1.2.2. Roles of housing credit

1.2.2.1. For customer:

With ordinary income from salaries, to have enough money to buy a home, many families

will take a long time. So, how to buy an apartment when only 20% – 30% of the money?

That is the question for those who want to buy a home.

Thanks to service mortgage payments that young families, those who have a steady

income but can not afford a house can still achieve their dreams. Thus, instead of having to

save for a long time, every month they just deduct the amount of a family’s income to

accumulate installments to the bank.

There are dream home, stable accommodation, activities, new customers are willing to

work and work, are motivated to continue production of social wealth, to improve the

quality of life of themselves and their families.

1.2.2.2. For economies:

While the real estate market is frozen, the bank launched the product home loan repayment

is a key factor stimulate the real estate market, accelerate transactions.

Currently, banks are associated with the business of the Company and the Insurance

Company to offer customers the most useful services, creating more jobs for workers.

From there to help the State achieve the economic goals – social: reducing unemployment,

improving the quality of life for people, poverty alleviation.

Activity mortgage payments to help customers meet the demands of his creative work

energetically, creating material wealth, increased social welfare, economies development.

1.2.2.3. For commercial bank:

Currently, real estate loans accounts for one third lend and accounting entries fifth assets of

commercial banks. Type the biggest real estate loans that banks make loans is to build

housing, normally accounting for about 60% of real estate loans. In addition, activities for

home loans also help banks to diversify product portfolio, contributing to spread risk and

attract more customers. In addition, mortgage operations launched to meet the urgent

needs of the people, makes people trust banks, giving people access to routine services,

utilities, banking products goods. At the same time, banks are developing more affiliate

products such as mortgages or automobile interiors after the mortgage. Development home

loans to help banks expand their relationships with clients, helping banks have the