FACULTY OF

FINANCE AND COMMERCE

Commercial Bank
Management
 CHAPTER 03

Overall About Credit

Operations
Contents

I. The basic issues of

the credit operations

II. The process of the

credit operations
I. The basic issues of the credit operations

1. Definition

The
Commercial Provide Credits
Customers
Banks
 I. The basic issues of the credit operations

1. Definition

Credit is a form of using the bank's capital through the transfer

of credit capital to customers under cash or property that the
customer commits to repay debt and interest on time.
I. The basic issues of the credit operations

2. Credit operations

1. Loan
2. Discount
3. Guarantee
4. Financial Leasing
5. Factoring
6. Overdraft
7. Others
 I. The basic issues of the credit operations

2. Credit operations
In your opinion, which credit operation plays the
most important role for Vietnamese commercial
bank in the current period.
 I. The basic issues of the credit operations

3. Credit granting principles

• Using capital for the truth purpose
• Timely repayment of principal and interest
 I. The basic issues of the credit operations
3. Credit granting principles
- The loan must be used for the purpose that agreed in the
credit contract.

To:
- Ensuring the efficiency in production and business of the
borrower.

- To ensure that loans are used in the right goals and

requirements of law.
 I. The basic issues of the credit operations
3. Credit granting principles
- The loan must be repaid in full both capital and interest
on time that committed in the credit contract.
 I. The basic issues of the credit operations
4. Credit granting conditions
• Having the civil legal capacity, civil act capacity, and taking
civil responsibility as prescribed by law
• The purpose of using the loan is lawful
• Have feasible and effective plans and projects
• Having sufficient financial capacity to ensure debt
repayment during the credit extension period
• Having secured assets in accordance with the provisions of
law
 I. The basic issues of the credit operations
5. Credit term:

- Loan term is the period from when the borrower

receives the first loan until the loan is fully repaid to
the bank.

Bases on determining loan term:

- Loan method.
- Business plan.
- Customer's ability to repay debts.
 I. The basic issues of the credit operations
5. Credit term
Corporate customers
Personal customers

Short-term credit: with a term of no more than 12 months

Medium-term credit: from 12 months to 60 months
Long-term credit: with a term of more than 60 months
Grace period Grace period?
I. The basic issues of the credit operations
5. Loan term:

10 – 25 year 05 – 08 year
I. The basic issues of the credit operations

6. Credit interest rate

Interest rate in term:

- Applying to calculate interest on the loan during
the repayment period.

- It is the negotiation between the bank and the

customer but must be suitable with the State Bank's
policy on interest rate management.
I. The basic issues of the credit operations
6. Credit interset rate:
Interest rate for overdue:
- Applying to calculate interest from the time of
transfer overdue debt.

- Calculating by the bank, which is greater than the

interest rate in term but it will not higher than the
allowed level of the State Bank.
 I. The basic issues of the credit operations

7. Credit limit

A credit limit is the maximum credit balance that the bank

agrees to and grants credit to the customer for a certain
period of time. Credit lines include short-term credit lines
and medium and long-term credit lines.
Điều 128 – Luật các TCTD
 I. The basic issues of the credit operations

7. Credit limit

Credit limit: the maximum amount of credit that the

bank can provide for customers.
The credit limit depends on:
-The size of the bank;
- Financial capacity;
- Level of risk to each customer.
 I. The basic issues of the credit operations

7. Credit limit

Amount of Loan = Demand for product - Self-finance

 I. The basic issues of the credit operations
8. Some other regulations
a. The non-borrowing needs
The following situations arise at the bank:
1. The customer applies for a loan to pay the interest of the borrowing bank
2. Customers borrow to pay tax debt. How many taxes does a business have?
3. Customers borrow to contribute capital to joint-stock companies
4. Customers borrow to invest in securities
5. Customers borrow to buy gold bars
6. Customers submit loan documents to repay loans and other bank interest
As a credit officer, how would you handle it? Why?
(Article 8 of Circular 39)
 I. The basic issues of the credit operations
8. Some other regulations
a. The non-borrowing needs
Loans are banned:
- The loan purposes for purchasing assets and expenses of
the prohibited things by law.

- Paying for another existing loan at other banks (Loan

repayment).
 I. The basic issues of the credit operations

b. Customers are not provided loans: Article 126 of the

Law on Credit Institutions

- Member of the Board of Directors, Supervisory Board,

General Director (Director), Deputy General Director
(Deputy Director) of the bank.

- Father, mother, wife, husband, children of members of the

Board of Directors, Supervisory Board, General Director
(Director), Deputy General Director (Deputy Director) of the
bank.
 I. The basic issues of the credit operations
8. Some other regulations
b. Customers are restricted loans - Article 127
of the Law on Credit Institutions
Blue Star Company submitted a loan application for a high-class apartment construction
investment project. Total investment capital 500 billion VND. The proposed loan amount
is 300 billion VND. A mortgage with assets formed from borrowed capital. It is known
that the Chairman of the Board of Directors cum General Director is Ms. Le Thu Ha (wife
of the Chairman of the Board of Directors of Phuong Bac Joint Stock Commercial Bank).
The percentage of shares Ms. Ha holds in Anh Sao Xanh company is 3%.
In your opinion, will Northern Bank agree to grant credit to the above project if:
Case 1: Mrs. Ha borrows
Case 2: Blue Star Company borrows
Note, the bank's charter capital is 3,000 billion VND
 I. The basic issues of the credit operations
Borrowing restricted subjects (in law) - Article 127 of the Law on Credit
Institutions
1. Credit institutions may not grant unsecured credit or grant credit with preferential
conditions to the following subjects:
a) Auditing organizations, auditors currently auditing at bank; inspectors who are inspecting at
bank;
b) Chief accountant of bank;
c) Major shareholders, founding shareholders;
d) The enterprise has one of the subjects specified in Clause 1, Article 126 of this Law owning
more than 10% of its charter capital;
đ) Persons who appraise and approve credit granting;
e) Subsidiaries, affiliated companies of a credit institution or an enterprise over which the
credit institution has control.
2. The total outstanding balance of credit extension for the subjects specified must not
exceed 5% of the equity capital of the bank
3. Must be approved by the Board of Directors and the Members' Council of the credit
institution and made public in the credit institution.
4. The total outstanding balance of credit extension for an entity specified at Point e must not
exceed 10% of the credit institution's own capital; for all entities specified at Point e, must not
exceed 20% of the credit institution's own capital.
 I. The basic issues of the credit operations

9. Credit types:
• Based on the loan term:
- Short-term liability.
- Medium and long term loans.
• Based on the purpose of capital use:
- Production loans.
- Consumption loans.
• Based on customers:
- Corporate customers.
- Individual customers.
 I. The basic issues of the credit operations
10. Types of credit security:

Credit security is the use by which customers use assets

legally owned by themselves (or by a third person) to serve
as a basis for securing a credit balance at the bank for a
certain period of time
I. The basic issues of the credit operations
10. Types of credit security:
Điều kiện:
TSBĐ Quyền sở hữu hợp pháp

Tài sản không bị tranh chấp

Tài sản phải dễ dàng mua bán,

chuyển nhượng

Mua bảo hiểm cho TSBĐ

 I. The basic issues of the credit operations
10. Types of credit security:
Vai trò của TSBĐ:
Đối với Quyết định cấp tín Đối với Sử dụng vốn vay
NHTM dụng Khách đúng mục đích
hàng
Hạn chế tâm lý ỷ lại
Hoàn trả nợ đầy đủ

Bảo vệ quyền lợi của

ngân hàng, là cơ sở
thu hồi nợ Hạn chế bị phát
Hạn chế và phòng mãi tài sản bảo đảm
ngừa rủi ro tín dụng
 I. The basic issues of the credit operations
10. Types of credit security:
Classification of collaterals
 Real Estate
-Land use rights
• Agricultural land
• Non-agricultural land
-Assets attached to land
 Estates
-Machinery, equipment, means of transport
-Goods
-Deposit in VND or foreign currency
-Valuable documents: savings books, certificates of
deposit, bonds, promissory notes, stocks...
I. The basic issues of the credit operations
10. Types of credit security:

a. Mortgage

b. Pledge
c. Guarantee
d. Secured by assets formed from loan capital
e. Other forms of credit guarantee
 I. The basic issues of the credit operations
a. Mortgage
Điều 317. Thế chấp tài sản – Luật dân sự 2015
1. Thế chấp tài sản là việc một bên (sau đây gọi là bên thế
chấp) dùng tài sản thuộc sở hữu của mình để bảo đảm thực
hiện nghĩa vụ và không giao tài sản cho bên kia (sau đây
gọi là bên nhận thế chấp).
2. Tài sản thế chấp do bên thế chấp giữ. Các bên có thể
thỏa thuận giao cho người thứ ba giữ tài sản thế chấp.
 I. The basic issues of the credit operations
a. Mortgage

Conditions for mortgaged property:

• Must have value and use value
• Must be legally owned by the mortgagor
• Transaction is allowed and there is no dispute
• Must buy insurance for properties that require insurance
 I. The basic issues of the credit operations
a. Mortgage

Thế chấp:
Bất động sản (chủ yếu)
Động sản
- Nếu tài sản được mua bảo hiểm thì số tiền bảo hiểm có
thuộc về TSBĐ?
- Hoa lợi, lợi tức phát sinh từ TSBĐ có thuộc về TSBĐ?
- Tài sản gắn liền với đất, khi phát mãi tài sản thế chấp thì
tài sản gắn liền với đất có bị phát mãi không?
 I. The basic issues of the credit operations
a. Mortgage
Mortgage handling:
Proceeds from the sale of collateral are used to pay in the
following order
- Pay expenses related to investigation and litigation
- Pay the costs related to the sale (fees paid to the auction
company)
- Pay the bank principal
- Paying loan interest
- The rest goes to the property owner
- If the liquidated property is not enough to pay the debt,
the borrower is obliged to pay off the debt to the bank
within the time prescribed by the Court.
I. The basic issues of the credit operations
b. Pledge
Điều 309. Cầm cố tài sản – Luật dân sự 2015
Cầm cố tài sản là việc một bên (sau đây gọi là bên cầm cố)
giao tài sản thuộc quyền sở hữu của mình cho bên kia (sau
đây gọi là bên nhận cầm cố) để bảo đảm thực hiện nghĩa vụ.
 I. The basic issues of the credit operations
b. Pledge
Các loại tài sản cầm cố:
Động sản Máy móc, thiết bị, phương tiện vận tải
Kim khí quý, đá quý
Ngoại tệ, số dư tài khoản tiền gửi
Chứng từ có giá
Tàu biển, tàu bay
Quyền khai thác tài nguyên thiên nhiên
Các tài sản khác theo quy định của pháp luật
 I. The basic issues of the credit operations
b. Pledge

- Nếu tài sản được mua bảo hiểm thì số tiền bảo hiểm có
thuộc về tài sản cầm cố?
- Hoa lợi, lợi tức phát sinh từ tài sản cầm cô có thuộc về
tài sản cầm cố?
- Nếu cầm cố bằng số dư tài khoản tiền gửi, kiểm soát tài
sản cầm cố như thế nào?
 I. The basic issues of the credit operations
b. Pledge

Chuyển giao và quản lý tài sản cầm cố:

 Động sản không có giấy sở hữu: vàng, ngoại tệ, GTCG,… ->
chuyển giao tài sản cho ngân hàng và bảo quản trong kho quỹ
 Động sản có giấy chứng nhận sở hữu: phương tiện vận chuyển,
hàng hóa -> chuyển giao bản gốc GCN quyền sở hữu
-Đối với hàng hóa: quản lý TS tại kho NH, kho DN, thuê kho
bên thứ 3
 I. The basic issues of the credit operations
c. Guarantee
Điều 335. Bảo lãnh – Luật dân sự 2015
1. Bảo lãnh là việc người thứ ba (sau đây gọi là bên bảo lãnh) cam
kết với bên có quyền (sau đây gọi là bên nhận bảo lãnh) sẽ thực
hiện nghĩa vụ thay cho bên có nghĩa vụ (sau đây gọi là bên được
bảo lãnh), nếu khi đến thời hạn thực hiện nghĩa vụ mà bên được
bảo lãnh không thực hiện hoặc thực hiện không đúng nghĩa vụ.
2. Các bên có thể thỏa thuận về việc bên bảo lãnh chỉ phải thực
hiện nghĩa vụ thay cho bên được bảo lãnh trong trường hợp bên
được bảo lãnh không có khả năng thực hiện nghĩa vụ bảo lãnh
 I. The basic issues of the credit operations
d. Secured by assets formed from loan capital

Tài sản hình thành từ vốn vay là tài sản của khách hàng vay mà
giá trị tài sản đó được tạo ra bởi 1 phần hoặc toàn bộ khoản vay
của ngân hàng.
Khách hàng sử dụng TS hình thành từ vốn vay để đảm bảo thực
hiện nghĩa vụ trả nợ cho chính khoản vay đó
 I. The basic issues of the credit operations
d. Secured by assets formed from loan capital

Các trường hợp áp dụng:

• Chính phủ giao cho ngân hàng cho vay đối với khách hàng và
đối tượng vay
• Cho vay trung dài hạn với các dự án đầu tư phát triển sản xuất
kinh doanh, dịch vụ, đời sống. Điều kiện ?
 I. The basic issues of the credit operations
e. Other forms of credit guarantee
Điều 328. Đặt cọc – Luật dân sự 2015
Đặt cọc là việc một bên (sau đây gọi là bên đặt cọc) giao cho bên kia
(sau đây gọi là bên nhận đặt cọc) một khoản tiền hoặc kim khí quý, đá
quý hoặc vật có giá trị khác (sau đây gọi chung là tài sản đặt cọc) trong
một thời hạn để bảo đảm giao kết hoặc thực hiện hợp đồng
Điều 329. Ký cược - Luật dân sự 2015
Ký cược là việc bên thuê tài sản là động sản giao cho bên cho thuê một
khoản tiền hoặc kim khí quý, đá quý hoặc vật có giá trị khác (sau đây
gọi chung là tài sản ký cược) trong một thời hạn để bảo đảm việc trả lại
tài sản thuê
Điều 330. Ký quỹ - Luật dân sự 2015
Ký quỹ là việc bên có nghĩa vụ gửi một khoản tiền hoặc kim khí quý, đá
quý hoặc giấy tờ có giá vào tài khoản phong tỏa tại một tổ chức tín dụng
để bảo đảm việc thực hiện nghĩa vụ.
 I. The basic issues of the credit operations

11. Banking policy:

- Legal documents - ordinances.

- Government decree.

- Documents are issued by the State Bank.

- Decisions and notices are issued by credit institutions.

 I. The basic issues of the credit operations

In 15/01/2020, the VPBank approved to provide loan for

customer, buying a new car (Individual loan)
Amount: 800.000.000 VND
Period: 05 year
Loan’s rate: 12%/year
The overdue rate that will be applied when customer does
not pay in time is 150%/year
Principal and interest collected at the same time;
Principal: paid in installments; Interest: calculated on the
actual outstanding balance
Calculating the payment of loan in initial 5-months.
 I. The basic issues of the credit operations
Information about a short-term loan of a customer at the bank is
as follows:
Amount: 300,000,000 VND
Loan term: 6 months
Disbursement date: March 18, 2022,
Interest rate 7.2%/year
Overdue interest rate is equal to 150% of loan interest rate
(penalty applies to late payment interest as well)
Request:
1. Amount payable by the customer at the due date
2. Assuming the customer fails to pay the principal and interest
on time as agreed, on November 20, 2021, the customer
requests to settle the loan, calculate the amount receivable
from the customer at this time.
II. The process of the credit operations
II. The process of the credit operations
II. The process of the credit operations

1. Definition

The credit process is a combination of principles and

regulations of the bank in granting credit to customers,
including jobs in a specific order from the beginning to the
end of the credit relationship. This process includes many
continuous stages, in a particular order, and at the same time
closely and closely related to each other.
II. The process of the credit operations

1. Contact with customers and receive documents

2. Credit appraisal
3. Credit granting decision
4. Signing of credit contracts, security contracts, notarization,
registration of secured transactions, warehousing of assets
5. Disbursement
6. Check and supervise the use of credit capital
7. Collection of principal and interest
8. Disposal of collateral/transfer of overdue debt
II. The process of the credit operations

1. Guiding Customer, receive the documents

Contacting customers
Consulting customer
Receiving customer's documents
II. The process of the credit operations

2. Credit Appraisal - Legal capacity.

Collecting information - Financial capacity.

Solving information - Purpose of using capital.

Writing the evaluation - Loan guarantee.

- Other documents.
II. The process of the credit operations

3. Credit granting decision

Authorized level check the report from financial advisor

Notifying the customer:

Approved for loan Not approved for loan

II. The process of the credit operations

4. Sign the credit contracts

Ký hợp đồng tín dụng

Công chứng
Đăng ký giao dịch đảm bảo

Ký hợp đồng đảm bảo tiền vay

Ký khế ước nhận nợ

II. The process of the credit operations

5. Disbursement

Disbursement’s documents:
- Bill of debt
- Disbursement list
- Payment orders
- Documents proving the need to use capital
II. The process of the credit operations

5. Disbursement

Credit department

Service department
II. The process of the credit operations

6. Check and supervise the use of credit capital

Check after disbursement:

- Use of capital;
- Financial situation and debt;
- Checking the re-evaluation of loan collateral.

7. Collection of principal and interest

II. The process of the credit operations

8. Disposal of collateral/transfer of overdue debt

9.Save profile

Closing the loans :

+ Conditions:
The borrower fully fulfills the obligation to repay the debt
to the bank.

+ Order of implementation:
- Check debt
- Return collaterals to customers;
- Saving the document.
Thank You