Doctor of philosophy thesis: State manamgement in diversification of credit activities of commercial banks in Hochiminh city to the year of 2020

CENTRAL INSTITUTE FOR ECONOMIC MANAGEMENT HA VAN DUONG STATE MANAMGEMENT IN DIVERSIFICATION OF CREDIT ACTIVITIES OF COMMERCIAL BANKS IN HOCHIMINH CITY TO THE YEAR OF 2020 Major : Economic Management Code : 62 34 04 10 DOCTOR OF PHILOSOPHY THESIS HANOI – 2013 THE THESIS IS COMPLETED AT THE CENTRAL INSTITUTE FOR ECONOMIC MANAGEMENT Supervisor: 1. Nguyen Manh Hai (PhD) 2. Le Xuan Sang (PhD) 1ST critic: ……………………………………………… ……………………………………………………………. 2nd critic ……………………………………………… ………………………………………………………….. 3rd critic: ……………………………………………… …………………………………………………………….. (Name, science position) The thesis will be defensed at the Evaluation Coucil at Central Institute for Economic Management on ….. /dd/mm/yyyy The thesis could be found at: The library of Central Institute for Economic Management The national library, Hanoi 1 FOREWORD 1. Motivation of the Study Credit activity of the banks in general and of the join stock banks in the area of Ho Chi Minh City (HCMC) in particular have an important contribution to economic growth health and poverty alleviation through providing capital to the economy, boosting investment, creating jobs and implementing social welfare. With the important role of bank credit, the safety, health and efficiency of the system of finance institutions (FIs) is an important factor for stability of the national financial system and the macroeconomics. However, due to the impact of the financial crisis spread around the world comes from the rapidly developed financial markets with the new model, business activity, the variety of complex financial products, involves greater risk; management framework and banking supervision as well as cognitive and credit activity safety standards are not being upgraded make the financial safety and stability level decreased. In Vietnam, the credit activity gradually implemented within the framework of ever­improving legal and international experience drawn from the crisis to apply in accordance with the specific situation in Vietnam. The international standard for risk management for each form of credit, credit limits, inspection, monitoring, ... institutionalized and implemented. However, credit activity in Vietnam and in HCM City also contains many risks because of developing large­scale credit. The government and the State Bank of Vietnam (SBV) has a number of solutions designed to manage stable credit activity and motivated to diversify credit activity in the commercial banks in HCM City However, the credit activity in Vietnam and Hochiminh city still containts risks. Iin the process of implementing policies, some commercial banks still have not made a compliance with regulations on credit and lending is the primary activity, many commercial banks in the area have not yet diversify credit activity and risky. The law is not uniform and synchronous; development orientation to diversify credit activity not timely; regulatory activity are not appropriate to facilitate the diversification of credit activity; inspection and supervision activity should be more complete. These are the requirements for state management, which should be completed soon and having state management solutions, creating a favorable environment for commercial banks to diversify credit activity, contribute to limit operational risks in credit activity of commercial banks and to better meet the needs of capital for socio­economic development in the area. 2 On the basis of the above practices, there have been many international and domestic studies related to state management in credit activity diversification. However, the situation is incomplete research, unsystematic; none of the studies are referring to the state management in diversification of credit activity of commercial banks in HCMC. Starting from the essential requirements of having complete solutions for the state management in credit activity diversification process of commercial banks and related studies’s situation as stated above, the authors selected the topic "State management in diversification of credit activities of commercial banks in Ho Chi Minh City to the year of 2020" for the subject of the thesis research. 2. The situation of related studies There are many valuable researches contributed to the development of credit activity and state management of credit activity. However, studies have not specified the content and evaluation criteria for state management in credit activity diversification. In particular, due to the research focused on lending activity, there is not any specific, comprehensive, deeper research of state management in diversification of credit activity of commercial banks in the HCMC area, to be able to apply scientific and effective in practice. 3. Objective of the Study The main objectives of the studies are: (i) To systematize, deepening the theoretical issues related to efficient state management of credit activity diversification; (ii) To apprise the situation and the results of credit activity diversification; to identify the causes, the weakness in the credit activity of the local commercial banks, especially, to analyse the situation of state manangement in credit activity diversification of the commercial banks and to identify factors affecting the results of state manangement in diversification of credit activity of the commercial banks in HCM City to the year 2020; and (iii) To recommend the solutions to improve state management in diversification of credit activity of the commercial banks in HCM City to the year 2020. 4. Object and scope of the Study Subjects of the Study are the contents of state management in diversification of credit activity of commercial banks in HCMC. The specific subjects include: (i) theory and international experience of the state management in credit activity diversification; (ii) state management practices in diversification of credit activity of the commercial banks in HCM City. 5. Methodology of the Study Methodology of the Study: The thesis analyzes credit actitivies, credit diversification and state regulatory on credit diversification, the international experiences of countries with similar conditions to Vietnam, the current situation of state regulatory on credit diversification in Vietnam and HCMC to to make recommendations to improve the state management in diversification of credit activity of commercial banks in HCMC. ... - tailieumienphi.vn