THE MOBILIZATION AND USING CAPITAL ACTIVITIES OF TECHNOLOGICAL AND COMMERCIAL JOINT-STOCK BANK

FOREIGN TRADE UNIVERSITY
FACULTY OF FINANCE AND BANKING

INTERNSHIP REPORT
THE MOBILIZATION AND USING CAPITAL ACTIVITIES
OF TECHNOLOGICCAL AND COMMERCIAL JOINTSTOCK BANK

Student:

Chu Le Thuy Quyen

Student’s ID:1114340049
Class:
Instructor:

A18- High quality class, Faculty of Finance and Banking, K50
M.A Do Duy Kien

Hanoi, August 2013


2


CONTENTS

3


CONTENTS OF ABBREVIATION
No.

1
2
3
4
5
6
7

Abbreviation
Technological and Commercial
Joint-Stock Bank
HongKong and Shanghai Banking
Coporation
Net Interest Margin
Non-Performing Loans
Return on Asset
Return on Equity
Capital Adequacy rate

Full name
Techcombank
HSBC
NIM
NPLs
ROA
ROE
CAR

4

CONTENT OF DATA TABLES AND CHARTS
Chart I.1: Techcombank’s shareholders.................................................................10
Chart I.3: Techcombank’s Organizational Structure ....................................... 12
Table II.1: Income statement of Techcombank from 2011 to 2013 (Souce:
Techcombank’s annual financial report) ........................................................... 15
Table II.1: ROA and ROE of Techcombank in 2012 and 2013 .............................16
Table II.2.1: Deposits by segments (Source: Techcombank’s Annual Financial
Report) .................................................................................................................. 16
Chart II.2.1: Deposits by segments ..................................................................... 17
Table II.2.2: Deposits by terms from 2011 to 2013 (Source: Techcombank’s Annual
Financial Report) ................................................................................................. 17
Chart II.2.2: Deposits by terms from 2011 to 2013............................................ 18
Table II.2.4: Capital adequacy rate from 2011 to 2013...................................... 19
Table II.3: Loans to customers by segments from 2011 to 2013 ....................... 20
Chart II.3: Loans to customers by segments from 2011 to 2013 ...................... 20
Table II.3: Loans to customers by term ............................................................. 21
Table II.3: Loans classified by credit worthiness .............................................. 22

5


INTRODUCTION
1. REASONS FOR CHOOSING TOPIC

The global financial crisis which derived from United State in 2008 has affected
strongly to the global economy in general and Vietnamese economy in particular. The
bubble of the real estate not only lead to the bankruptcy of thousands firms, the
extremely high inflation rate but also lead to the best nightmare ever of every bank –
Bad Debt.

In this scenario, it seems that Vietnamese banks have not found the right way and
direction for themselves. After a series of merge and acquisition, many banks which are
unable adapt the market and have weak background have to leave the play. Banks
which are still alive are the strongest ones. But it doesn’t mean that these banks do not
have to face to any difficulties. The fact that they do deal with their problems and they
are finding the most effective way to recover all loss from the terrible crisis.
Moreover, nowadays, the trend of globalization and international economic
integration are stronger than ever before. Global economy needs the sturdy relationship
among subjects. And Vietnam is not out of these subjects. Especially, in this period, we
need to pay more attention in investment activities with projects bringing back great
advantages for society. In this condition, banks play the vital role in the industrialized
and modernized economy.
Through learning, I was introduced to Technological and Commercial Joint-Stock
Bank (Techcombank) and I decide to choose Techcombank as the subject of my report
because in my opinion, Techcombank is one of the most suitable banks which reflect
the typical condition of Vietnamese banks in recent years with up and down result.
Moreover, while participating in Techcombank’s internship, I studied a lot which will
be useful for me in the studying process in universities and it is also the initial
experiences for my future career.
All of the reasons above motived me to study and have a deeper look in the topic:
“THE MOBILIZATION AND USING CAPITAL ACTIVITIES
TECHNOLOGICCAL AND COMMERCIAL JOINT-STOCK BANK”

OF

6


2. PURPOSE AND SCOPE OF REPORT.

3.
a.
b.
4.
I.
II.
III.

Purpose: analysis and assess the effectiveness to see the weakness and strength of
Techcombank.
Scope: the operating result of Techcombank from 2011 to 2013.
METHODOLOGY
Method of data collection
The data used in the report were collected from the Techcombank’s annual financial
report throughout three years 2011, 2012, 2013.
Information and some data in newspaper and financial magazines with the instruction
of Instructor and the Techcombank’s staff.
Methods of data analysis.
Typology
Absolute comparison method.
Relative comparison method.
STRUCTURE OF THE REPORT
OVERVIEW OF VIETNAM TECHNOLOGICAL AND COMMERCIAL JOINTSTOCK BANK.
TECHCOMBANK PERFORMANCE.
ADVANTAGES AND DISADVANTAGES OF TECHCOMBANK.
RECOMMENDATIONS AND CONCLUSION.

I.

OVERVIEW OF VIETNAM TECHNOLOGICAL AND

COMMERCIAL JOINT-STOCK BANK
7


1. GENERAL INFORMATION AND HISTORY OF FORMATION.
1.1 General information.

To the approval of Governmental pre- minister, The State bank of Vietnam and
State Securities committee, Viet Nam Technological and Commercial Joint Stock
Bank( Techcombank) officially announces the result of released stocks for strategic
shareholders- Hong Kong Shanghai banking corporation( HSBC) to raise the chattered
capital at the second time in 2008.
The quantity of released stocks for HSBC: 20.895.459 raising the ownership
properties in Techcombank of HSBC to 20 %; in which:
-Type of shares: popular shares.
-Value of shares: 10.000 dong/ per share.
- Released cost for HSBC: 60.891,52 dong/ per share
Time of release: 5th September 2008.
The Techcombank chattered capital after releasing shares for HSBC was
3.165.235.710.000 dong (three thousand one hundred sixty five billion two hundred
thirty five million seven hundred ten thousand).
The capital using plan: Used for trading business, investing, capital contributing
of Techcombank and supporting IT system of Techcombank, networks, head office and
branches.
The limitation of shares authorization: based on the Vietnamese laws.
For more information, please contact: secretarial office of Administrative boardVietnam Technological and Commercial Joint Stock Bank head office, 70-72 Ba Trieu,
Hoan Kiem, Hanoi
1.2 History of formation.

Techcombank was established on September 27th, 1993 with the initial registered

capital of VND 20 billion, after 18 years of operation, Techcombank has become one
of the top joint-stock commercial banks in Vietnam with the aim to become an efficient
financial intermediary bridging the savers with the investors in need of capital for
business and economic development in the open-door era.

8


Techcombank’s strategic shareholder is HongKong and Shanghai Banking
Coporation (HSBC) with 20% of the shares. Techcombank is also the first bank and the
Financial Insights only awarded Bank for leading technology solutions and
applications.

Chart I.1: Techcombank’s shareholders
In 1995, the registered capital was increased to VND 51,495 billion. Parallel with
this event, the Ho Chi Minh City branch was established starting the process of fast
expansion of Techcombank in the main urban areas.
In 1996, Thang Long branch and Nguyen Chi Thanh sub-branch were established in
Hanoi, together with Thang Loi sub-branch in Ho Chi Minh City. The Bank’s
registered capital has increased to VND 70 billion.
In 1998: With the establishment of Da Nang branch in that year the branch network
has covered all three main regions: the North, Central provinces, and the South.

9


From 1999 to 2013, Techcombank increased the total registered capital from VND
80,2020 billion to VND179,934 billion and open over 300 branches and sub-branches
in 44 provinces of Vietnam.
Services Techcombank offer for customers:

•

Individual Service:

-

Account

-

Card

-

Saving deposit

-

Time deposit

-

Money transfer

-

Personal loan

-

Banc assurance

-

E-Banking

•

Corporate Services:

-

Business account

-

Payment and cash management.

-

Corporate financing.

-

Foreign exchange and treasury.

-

International payments.

-

Trade finance.

-

Guarantees.

-

Investment banking.

10


-

Asset management.

-

E-Banking

2. TECHCOMBANK’S ORGANIZATIONAL STRUCTURE

SHAREHOLDERS’ MEETING

BOARD OF SUPERVISORS

BOARD OF DIRECTORS

AUDIT AND RISK

BOARD OF MANAGEMENT

COMMITTEE

BOARD OF ASSETS AND LIABILITIES

CREDIT COUNCIL

MANAGEMENT

Internal
control

Credit management

External relationship

Financial

and

accounting

Office

Capital management

Technology

Marketing

Branches

Sub-branches

Sub-branches

Sub-branches

Sub-branches

Branches

Sub-branches

Sub-branches

resource

and

General plan
transaction

Branches

Human

Information

and

Branches

Sub-branches

Sub-branches

Branches

Sub-branches

Sub-branches

Chart I.3: Techcombank’s Organizational structure
3. FUNCTIONS OF EACH DEPARTMENT
3.1 Shareholders’ meeting
11


Shareholders’ meeting is the highest authorities of the Bank who has the right to
decide on the strategic development of the bank and elects Board of Directors and
Board of Supervisors. Shareholders’ meeting is conducted periodically and may be
hold unusually between two annual meetings.
3.2 Board of Directors and Board of Supervisors.
- Board of Directors has seven members; permanent members include the chairman, first
vice president and 3 vice presidents. Board of Directors is the governing body of the

bank; they have discretion on behalf of the bank to decide matters relating to the
purposes and interests of banks, except for matters under the jurisdiction of the
shareholders' meeting.
- Supervisory Board has three members: Chairman of Supervisory Board member
responsible for controlling, 1 specialized controller and 1 controller. Supervisory Board
shall examine the financial activities of the bank; monitor the observance of the
accounting system, the operating system checks and test internal auditing of the bank.
3.3 Audit and risk committee
- This department of Techcombank is built with full parts and tools to ensure the
detection and analysis of risks as soon as they arise. the setting and monitoring of risk
indicators are carefully planned, as well as the system is always checked, updated and
add added new elements to response positively and effectively with the change of
market and economic condition.
- Audit and risk committee manage and control the following risk:
+ Credit risk.
+ Market risks: liquidity, interest rate, foreign exchange,…
+ Other risks.
3.4 Board of Management
-

The Board of Management defines the long-term goals and the strategies for the bank,
branches, and sub-branches, and sets forth the principles and directives for the resulting
bank policies. It coordinates and monitors the most important activities, defines the
portfolio, develops and deploys managerial staff, allocates resources and decides on the
Bank’s financial steering and reporting.

-

The members of the Board of Management bear joint responsibility for operating as a
whole. However, the individual members manage the areas assigned to them on their

own responsibility within the framework of the decisions made by the entire Board.
The entire Board of Management makes decisions on all matters of fundamental
importance and in cases where a decision of the entire Board is prescribed by law or
otherwise mandatory. The rules of procedure of the Board of Management contain a list
of topics that must be dealt with and resolved by the entire Board.
12


-

Meetings of the Board of Management are held regularly. They are convened by the
Chairman of the Board of Management. Any member of the Board of Management
may also demand that a meeting be held. The Board of Management makes decisions
by a simple majority of the votes cast, except where unanimity is required by law. In
the event of a tie, the Chairman has the casting vote.

-

According to the Board of Management’s rules of procedure and schedule of duties, the
Chairman bears particular responsibility for leading and coordinating the Board’s work.
He represents the company and the Group in dealings with third parties and the
workforce on matters relating to more than one part of the company or the Group. He
also bears special responsibility for certain departments of the Corporate Center and
their fields of activity.

3.5 Other departments

Each department has its own function which is relatively the same as its name, such as
the Credit Council is responsible for checking the credit of customer; or Board of
assets and liabilities management is responsible for the risks relating to the balance of

assets and liabilities. Because of the limitation of this report, I am unable to manage to
express all functions of all smaller departments.

II.

TECHCOMBANK PERFORMANCE

1. OVERVIEW OF OPERATING RESULTS FROM 2011-2013

In recent years, the context of the world economy, in general, has remained gloomy
so that banking activities had to face to many difficulties in raising capital, loans and
debt recovery. Techcombank is not an exception of the Finance and Banking industry
as well as the global economy when the bank’s performance has been affected
negatively and heavily. The rate of non-performing debt has reached the highest level
than ever before in recent year is one of the main important reasons for the going down
of the income curve. Moreover, the drear condition of the real estate and stock market
are also elements which contribute to those scenarios. However, with the effort of
managers and bank’s staffs, Techcombank still get some positive result to strengthen
the faith and ensure the benefit of stockholders. Operating results of Techcombank are
shown in the following data table:

13


INCOME STATEMENT
2013
2012
REVENUE
Interest and similar income 13,281,305 17,622,864
Interest and similar

(8,945,643 (12,507,291
expenses
)
)
Net interest income
4,335,662
5,115,573

2011
19,948,573
(14,650,198
)
5,298,375
14


Fee and commission
income
Net loss from trading of
foreign currencies and
gold
Net gain from trading of
securities held for trading
Net gain/(loss) from
investment securities
Other income
Income from investments
in other entities
Total noninterest income
Total revenue

Provision expenses
Fee and commission
expenses
Other expenses
Operating expenses

1,150,038

1,051,286

1,520,157

(121,501)

(138,863)

(698,913)

105,137

2,701

(55,333)

160,910
738,646

(175,043)
617,848

416,257
707,115

17,253
2,050,483
6,386,145
(1,413,964
)

29,992
1,387,921
6,503,494

8,061
1,897,344
7,195,719

(1,449,481)

(341,864)

(485,883)
(256,233)

(369,803)
(163,741)

(3,294,041)
5,485,638
1,017,856

(2,099,198)
2,974,606
4,221,113

(413,795)
(324,514)
(3,355,666
)
5,507,939
878,206

Total noninterest expense
Income before income tax
Income tax expense –
current
(213,146)
(253,344)
(1,077,016)
Income tax expense –
deferred
(5,989)
1,174
9,669
Net income after tax
659,071
765,686
3,153,766
Table II.1: Income statement of Techcombank from 2011 to 2013 (Souce:
Techcombank’s annual financial report)

-

-

Operating Income in 2013 reached VND 5,648 billion, slightly lower by 1.9% in
comparison to year 2012 as a result of Net Interest Margin (NIM) compression from
3.4% to 3.2% due to a downward trend in interest rates in 2013.
Net Interest Income decreased 16.94%, to VND 4,336 billion Net Fee Income
increased 30.2%, equivalent to VND 736 billion.
Trading and Investment Income improved in 2013, from a loss of VND 311 billion in
2012, to a profit of VND 145 billion in 2013.
Operating Expenses increased by VND 62 billion, or 1.87% compared to last year. The
Bank continued to invest in IT infrastructure and branch offices as to maintain its
extensive network of 315 branches throughout the country.
15


-

Provision for Loan Losses stood at VND 1,414 billion, decreasing by VND 36 billion
in comparison with last year following a conservative approach in assessing NonPerforming Loans (NPLs). As of the end of 2013, the NPL ratio of the Bank was at
3.65%, representing a significant decrease from 5.9% as of the end of the Third Quarter
of 2013. The Bank has been focusing on bad-debt management and recovery, together
with controlling credit risk, following international standards.

2012
20.13
Return on Asset (ROA)
0.42%
0.39%

Return on Equity (ROE)
5.58%
4.77%
Table II.1: ROA and ROE of Techcombank in 2012 and 2013
- Profit before Tax reached VND 878 billion, a decrease of 13.7% compared to last year.
As a result, Return on Assets (ROA) declined from 0.42% to 0.39%, while Return on
Equity (ROE) decreased from 5.58% to 4.47% in 2013. Both reductions are not good
signal for the development of Techcombank. Managers should do something with the
business strategy to deal with this situation.
2. MOBILIZATION
2.1 Deposits by segments.
Year

2011
VND
million

2012
%

VND
million

2013
%

VND
million

%

Economic
31,012
22.67%
34,406
22.84%
40,973
30.30%
Entities
Individuals
57,636
42.14%
77,056
51.16%
79,005
58.43%
Other Credit
48,133
35.19%
39,170
26.00%
15,225
11.26%
Institution
Total Deposits by
100.00
100.00
100.00
136,781
150,632

135,203
Segments
%
%
%
Table II.2.1: Deposits by segments (Source: Techcombank’s Annual Financial
Report)

Chart II.2.1: Deposits by segments
Total mobilization witness an unstable trend from 2011 to 2013 with the highest
number of 150,632 million dong in 2012. The deposits in 2013 decreased 15,429
million dong, equal to 10.24% of total deposit in 2012. The result of the break-down of
deposits by currency due to the falling deposit of other credit institution of 23,945

16


million dong which is equivalent to 61.13% of deposits from other credit institution in
2012 and 68.37% in 2011 or exactly due to the strong decrease of foreign currency
(foreign currency deposits decrease by 11.9%) while deposits from economic entities
and individuals still kept rising 2.5% and 19.1% respectively.
2.2 Deposits by term

Year

2011
VND
million

2012

%

VND
million

2013
%

VND
million

%

Saving
deposit
11,440,309
12.91 13,000,727
11.66 17,695,172
14.75
Time
100,952,92
deposit
75,275,537
84.92 97,204,765
87.21
8
84.14
Margin
deposits
1,931,933

2.18
1,256,796
1.13
1,329,824
1.11
Total
deposits
88,647,779 100.00 111,462,288
100.00 119,977,924
100.00
Table II.2.2: Deposits by terms from 2011 to 2013 (Source: Techcombank’s Annual
Financial Report)
Chart II.2.2: Deposits by terms from 2011 to 2013
In total deposits, time deposits accounted for a significant proportion,
particularly above 80% throughout 3 year from 2011 to 2013 while saving deposits and
margin deposits just took up a small proportion. This is a great advantage for the bank
because time deposits are regarded as a relatively stable source of capital so
Techcombank would find it much easier to get involved in banking investment or other
profitable activities especially in revolving capitals. With such a reasonable structure of
mobilization, Techcombank was able to use the funds effectively. In particular, thanks
to this structure banks can save costs by reducing mobilized capital for promissory
notes with higher interest rate. Obviously, the competitive and attractive strategies of
Techcombank worked well and got good results.
2.3 General comments.
Despite the difficulty of economic condition, the deposits of two above
segments still showed an upward trend is the result of some well-done activities such
as:
+ Consolidate and increase close relationship with the traditional customer units in many
years such as Vietnam social Insurance, health Insurance , development Assistance
Fund, treasury venom system in the province, Vietnam deposit Insurance…

+ Doing good work with key partners’ payment
17


+

+
+
+

2.4

Always closely monitoring, capturing movement of interest rates in the market,
focusing on marketing and finding new customers which help Techcombank adjust
interest rates promptly ensure competitiveness and efficiency in business.
Expand the network level activity to gradually dominate the business market, work on
day-off to improve the quality of customer service.
The cash collection and payments are quick, safe, and accurate meet the requirements
of economic entities and individuals.
Applying effective marketing methods to encourage more transactions and customer
loyalty to banks, raising capital to open more channels through the issuance of
promissory notes ...
Capital Adequacy rate (CAR)
2013

2012

2011

Capital Adequacy rate

14.03%
12.60%
11.43%
Table II.2.4: Capital adequacy rate from 2011 to 2013

This is an important indicator to assess the safety of banks (the ratio of equity
capital to total risk assets), this ratio especially express its optimality in such a potential
risk market like Vietnam. According to the Circular No. 13/2010/TT-NHNN, which
was issued by State Bank of Vietnam and took effect from October 1 st, 2010, stipulates
the minimum capital adequacy ratio of commercial banks is 9%.
The above table shows the CAR of Techcombank from 2011 to 2012. We can
see that this ratio witnesses an upward trend from 11.43% in 2011 to 14.03% in 2013
and especially, all of them exceeding 9%. By performing a relative high CAR,
Techcombank has succeeded in contributing and monitoring Risk Management
procedure, by the way, increase the faith of customers. The CAR of Techcombank in
2013 was higher than CAR of Vietinbank (13.2%) or Vietcombank (13.37%) or we can
say in another way that the CAR of Techcom bank is fairly high in Finance and
Banking industry as a whole.
3. USING CAPITAL – LOANS TO CUSTOMERS BY SEGMENT AND BY TERM.

18


2011
VND
millio
n
Agriculture and
Forestry

Trade Manufacturing
and Processing
Construction
Warehousing,
Transport and
Communication
Individuals and
Others
Total loans

8,783
22,993
5,097
2,114
24,465
63,452

2012
%
13.84

VND
millio
n
6,390

36.24 24,141
8.03 5,174
3.33

8,74

38.56% 31,683
100.00% 68,262

2013
%
9.36

VND
millio
n

%

5,324

7.58

35.37 26,620
7.58 8,591

37.88
12.22

1.28

744

1.06

46.41% 28,996
100.00% 70,275

41.26%
100.00%

Table II.3: Loans to customers by segments from 2011 to 2013

Chart II.3: Loans to customers by segments from 2011 to 2013
Based on the data table, we can see some main points in the Loans to customers
by segments of Techcombank throughout three years. Specifically as follow:
o In general, the total loans to customers experienced an upward trend and as of the end
of 2013, reflecting the conservative approach in lending policy of the Bank, the
customer loan balance reached VND 70,275 million, representing a slight increase of
2.9% from 2012. However, it is undeniable that year 2013 is a difficult year
Vietnamese economy in general and Finance and Banking industry in particular so this
result is not disappointing at all.
o In three years, loans to customers in Trade Manufacturing and Processing and
Individuals and Others were two sectors which took up the largest proportion. Both
segments showed an unstable trend. Year 2012 also marked a change in the loan
structure by industry mainly due to the gradual recovery of the real estate market.
Techcombank’s loan portfolio in the Agriculture and Forestry sector decreased by 17%,
increased by 66% in the Construction sector and increased by 10% in the Trading and
Manufacturing sector.

Year

2011

2012

2013
19


VND
million
Short
term
Medium
term
Long
term
Total
loans

Percentage

VND
million

Percentage

VND
million

Percentage

35,586,745

56.08% 36,446,276

53.39%

35,073,696

49.91%

10,619,444

16.74% 16,425,411

24.06%

19,421,234

27.64%

17,245,276

27.18% 15,389,755

22.55%

15,779,716

22.45%

100.00% 68,261,442

100.00% 70,274,646
Table II.3: Loans to customers by term

100.00%

63,451,465

According to the data table, we can see that, the short-term loans have little
change over years. Moreover, it is the segment which occupied the largest proportion in
total loans to customer by term so Techcombank would take advantage of this structure
to increase the bank’s ability to revolve capitals and use them in the most effective way.
However, medium-term and long-term also brought back great benefit in ensuring a
stable interest rate during up and down years like recent years.
In the evaluation, parallel with the evaluation of the size and structure of credit
application, administrators Techcombank also simultaneously calculate target rate
average loan that formula is expressed as follows:
Lending rate = x 100
This indicator says 100 on bank capital to loans receivable incurring interest.
Along with extending credit, Techcombank always pay attention to improve
credit quality by lenders. If the sales are high, revenue collections is low, which means
banks have problem loans, many outstanding debts, and the business situation will not
have good results. Consequently, rating credit quality is always the requirements which
are set in practical operation of the bank. To assess the credit quality of the bank,
managers of Techcombank used disaggregation method to classify loans into the
following categories which are shown in the following table:

Group 1 Current

2011
2012

2013
VND
VND
VND
million
%
million
%
million
%
57,104,41
64,415,28
63,736,18
3
90.00
8
94.37
4
90.70
20


Group 2 Special
mention
Group 3 Substandard
Group 4 Doubtful
Group 5 - Loss
Total Loans

4,553,396

7.18

2,005,682

2.94

3,972,491

5.65

927,476

1.46

108,330

0.16

447,898

0.64

623,731
0.98
848,623
1.24 1,128,849
242,449
0.38
883,519

1.29
989,497
63,451,46
68,261,44
70,274,91
5
100.00
2
100.00
9
Table II.3: Loans classified by credit worthiness

1.61
1.40
100.00

By using this method, managers can easily determine the status of loans and set
up a reasonable provision level. We can see that, in 2013, the proportion of current
loans decreased and it leaded to the increase of proportion of the worse quality loans
such as Special mention loans, substandard loans, Doubtful loans and Loss loans.
Compare to the third quarter of 2013, the proportion of current loans has increased;
however, it is still lower than that in 2012. Techcombank need pay more attention in
risk management and give more effective method to deal with this situation.

III.

ADVANTAGES AND DISADVANTAGES OF TECHCOMBANK.
1. ADVANTAGES OF TECHCOMBANK.

In recent years, Vietnamese economy has developed quickly in favorable macro

economy. Economic growth and GDP continuously increase, especially, year 2006,
Vietnam join in WTO, which leads to many opportunities for our country.
Additionally, import and export activities grew than ever before.
Living standard and minimum wage increase make people demand more and
more money, which has promoted credit services and individual loans.
The development of stock market increase demand for brokerage service, repo
and other financial services.
All of conditions mentioned above are great advantages to banks in general and
Techcombank in particular.
21


2. DISADVANTAGES OF TECHCOMBANK.

The open economy is a two edge weapon which not only brings back many
benefits to Techcombanh but also give Techcombank a strong competition from foreign
banks and financial institutions.
Besides, with the financial crisis, credit risk is a problem which prevents
Techcombank from making loans.
The decline of interest rate also make customer have less motivation to make
deposits in bank.
Bank’s staffs are young, active and are willing to learn however they are lack of
experiences.
All of things above are some main difficulties Techcombank have to face to.
Managers and staff need to try harder to deal with these problems.

22


RECOMMENDATIONS AND CONCLUSION.

1. RECOMMENDATIONS.
1.1 To Techcombank.

After studying the operating situation of Techcombank, I boldly give some
recommendation as follows:
Techcombank should pay more attention in risk management process as well as rating
credit process to reduce NPLs.
- Techcombank also should concentrate more in medium and small firm to give
reasonable and attractive to these firms. Renew process of making loans to medium
and small firms. Using typical products for medium and small firm.
- Shortening the time to review loans but still keep the effectiveness. Besides, making
the procedure of making loans become easier to understand.
- Increasing the marketing activities to attract more customer simultaneously provide
products’ information to customers.
- Diversifying collateral and form of guarantee.
- In current year, Techcombank can adapt most of demand for short term loans, however,
medium term and long term loans are not paid enough attention. So that, banks should
care more about product for medium and long term loans.
- Training staffs to improve skill in banking activities. Concentrating in human resource.
1.2 To State bank of Vietnam.
- SBV should issue documents guiding the implementation of laws and regulations for in
a clear and understandable way.
- SBV should increase autonomy for the commercial banks as not to interfere too deeply
in adjusting interest rates or loan forms…
-

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2. CONCLUSION.

Because of the difficulty of economy and financial situation, beside positive
results, Techcombank still has to face to many problems. With the effort of managers
and all staffs, Techcombank are trying to overcome all and developing well.
By learning the operation of Techcombank, my report have some general
assessments about situation of Techcombank. During my working time in
Techcombank,I have got very much useful information and knowledge as well as
valuable experience for studying and working.
With the limitation of knowledge and vision, additionally the continuous change
of business and economic environment, my report remains many deficiencies. So I
hope that I could receive the opinions of Techcombank’s staff as well as lecturers
Faculty of Finance and Banking, especially my instructor.
However, I expect that my recommendation will be cared more to improve the
business result of Techcombank and the development of Finance and Banking industry.
Finally, I sincerely thank my instructor-M.A Do Duy Kien for helping and
supporting me during the time I wrote this report and I also sent my gratitude
Techcombank for giving me chance to work in a active and professional environment.

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REFERENCES
1. Techcombank’s Annual Financial reports year 2011, 2012, 2013.
2. Vietnam’s Law of Finance and Banking No. 46/2010/QH12, 2010
3. M. Buckle, E. Beccalli , Principle of Banking and Finance, FN1024,
4.
5.
6.
7.

2790024. 2011.
Jeff Madura, Financial Market and Institution, Edition 10th.
Peter S.Rose, Sylvia C.Hudgins, Banking Management and Financial
Services, Edition 7th.
Information from Techcombank website:
/>Capital Adequacy Ratio definition and Calculation at:
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