LIST OF ACRONYMS

TAC Tan Cang

RM Relationship Management
MB Military Bank
HO Head Office

SME Small and Medium Enterprises

CIB Corporate and Institutional Banking

AMC Asset Management Company

LD Lending and Deposit

PD Loans Past Dues

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Chapter 1: General introduction of Military Bank and their business operations
1.1. The process of formation and development
1.1.1 Banking overview
- Full name: Military Commercial Joint Stock Bank
- Military Commercial Joint Stock Bank, abbreviated as Military Bank, abbreviated as MB,
is a joint-stock commercial bank in Vietnam, an enterprise under the Ministry of Defense.
As of 2018, the bank's charter capital was VND 21,605 trillion 1, and the total assets of the
bank in 2018 were VND 362,325 trillion. The main shareholders of Military Bank are
Viettel, State Capital Investment Corporation, Vietnam Helicopter Corporation, and Saigon
Newport Corporation. In addition to banking services, Military Bank is also engaged in
securities brokerage, fund management, real estate trading, insurance, debt management,
and asset exploitation by holding a controlling stake in the bank, and a number of
enterprises in this field. Currently, Military Bank has a nationwide network with over 100
branches and over 190 transaction points spread across 48 cities and provinces. The bank
also has a representative office in the Russian Federation, and branches in Laos and
Cambodia2.
- MB develop a strategy for the new period 2022-2026. In the coming time, MB sets out the
motto "Digital Acceleration; Retail Breakthrough; Safety - Efficiency", continuing the
vision "MB is the most convenient bank, making MB become the "No. number, ranked in
the Top 3 retail banks in the Vietnam market", upholding the principle of "Respect of the
law".

1
According to Colonel Le Cong (2018) - The former chief executive of MB. 
2
03 branches in Laos, and Cambodia, 01 representative office in the Russian Federation

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1.1.2 Organization structure
In Military Bank, there are several departments with different functions to support each
other. 

Source: Design by author Nguyen Ngoc Huyen Nhi

Appraisal Division: Appraisal of credit options for all customers in the whole system;
System administration on organization, implementation of appraisal of credit granting plans
for customers. (MB.AMC3)

Executive Board: As the governing body for MB's daily activities, organizing the
implementation of business strategies and operational strategies to achieve the goals and
plans approved by the General Meeting of Shareholders, the Board of Directors. governance
through.

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MBAMC is a subsidiary of the Military Commercial Joint Stock Bank with the task of recovering
bad debts for the purpose of making financial and credit activities healthy and assessing asset
valuation: an appraisal of MB's loan security assets. 

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Risk management division: is the body that helps the CEO control all risks arising in
business activities, focusing on credit risk, liquidity risk, market risk, and operational risk.
and legal risks. The internal inspection and control division is the agency that establishes,
maintains, and develops a reasonable, safe, effective, and law-compliant internal inspection
and control system.

System Management Agencies: Including blocks and departments in charge of system

management, organized and operated according to management functions such as the
Strategy Implementation Office, CEO Office, Finance Division - Accountant; Human
Resources Division; The Information Technology Division, the Political Department, the
Basic Construction Department have the function of the building and maintaining the
development of management principles and mechanisms to strongly support the business
units, guiding the management to support expenditures. branches along the vertical axis,
creating high-quality services for customers.

Business Support Agencies: Consists of Operations, Networking, and Distribution

Divisions, whose function is to support increasing business operations developing, building,
and maintaining the processes of providing MB products and services with high quality,
ensuring risk prevention, developing MB's distribution network and channels as well as
administrative and management activities. 

Business blocks: are intensively organized by customer and market segments, including:
- Funding and currency trading division
- Corporate and Institutional Banking (CIB)
- Small and medium enterprises (SME)
- Block of individual customers (RM)
- Board of Investment
 

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1.2 Actual situation of business operations at Military Commercial Joint Stock Bank in
the period of 2021-2022 
Financial Statement show that in 2021, MB Bank will reach nearly VND 37,000 billion in
total operating income, up 35% over the previous year. Which, net interest income reached
more than 26,000 billion dongs, up 29.2%; Net profit from non-interest business activities
increased by 51.5%. Thanks to strong digital transformation, the bank's operating costs were
controlled, growing much lower than revenue growth (operating expenses increased by
17.2%). In addition, good credit quality and high bad debt coverage help prevent the bank's
provision expenses from increasing too sharply (Provision expenses in 2021 increased by
32%, equivalent to the increase in total income). After deducting expenses, MB Bank
recorded a pre-tax profit of VND 16,527 billion for 2021, an increase of 54.6% compared to
2020, and ranked fourth in the whole system, after Vietcombank, Techcombank and nearly
catching up with VietinBank.

By the end of 2022, MB's consolidated pre-tax profit reached VND 22,729 billion, up
37.5% compared to 2021; in which, the bank's pre-tax profit was 20,318 billion dong, up
41.1% over the previous year. Profit before tax of member companies reached VND 2,411
billion, contributing 12% of the group's pre-tax profit.

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 Bank profit ranking in the period of 2021-2022 (Unit: Million VND)

Chapter 2: Overview about retail business model of Military Bank – Tan Cang Branch
and how retail banking department (or calling customer relationship manager units)
works
2.1 The retail business retail of the Military Bank – Tan Cang Branch
Deploying newer and more dynamic and deeper business models for customers in 3
segments: Retail (S&T), SME, CIB, continuing to promote the effectiveness of Treasury
Division...
MB Bank has been operating in the field of capital mobilization, credit granting and related
banking and financial services for military customers and other economic sectors. Besides,
MB has also developed and diversified many other financial products and services such as
fund management, securities brokerage, real estate business, asset exploitation, debt
management, insurance...

Capital mobilization

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Mobilizing capital in the form of deposits of organizations, individuals, and credit
institutions in the form of demand deposits, term deposits, savings deposits... Issuing
certificates of deposit, signing bills, bills, bonds and other valuable papers to mobilize
capital from domestic and foreign individuals and organizations. Borrowing capital from
credit institutions, domestic and foreign credit institutions, from the State Bank in the form
of refinancing.

Credit granting activities

Banks provide credit to organizations and individuals in many forms such as lending,
guarantee, credit card issuance, discounting valuable papers, domestic and international
factoring. Short-term, medium-term and long-term loans to individuals and organizations.
MB provides loan guarantees, payment guarantees, performance guarantees, contract
performance guarantees and other forms of guarantee in accordance with the provisions of
law.

Investment activities
MB Bank invests in areas such as: Contributing capital to buy shares in enterprises and
credit institutions. Contribute capital with foreign credit institutions to establish joint
venture credit institutions in Vietnam. Invest in joint ventures, contribute capital to
cooperate in investment and development of projects in accordance with the law.

Insurance
MB provides life insurance, non-life insurance, reinsurance and other types of insurance in
accordance with the law.

Other banking activities

Participating in the money market according to the regulations of the State Bank. Trading
foreign exchange and gold on domestic and international markets. Trading in bonds,
convertible bonds, investing in other valuable papers at home and abroad. Providing

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derivative services including: interest rate derivatives, foreign exchange, currencies and
other assets. And other financial and banking activities permitted by the State Bank.

2.2 How retail banking department in Tan Cang Branch (or calling customer
relationship manager units) works
Retail banking 4
breakthrough is one of the long-terms goals of MB. Retail banking is a
place where individual customers can come to transact at the bank's transaction points to
perform services such as savings deposits, checking accounts, mortgage loans, credit cards,
etc. debit card and other associated services. Retail banking is banking services provided to
customers who are the general public, usually on a small scale and through branches, in
contrast to NHBB services, which are banking services for institutions. Financial and
banking services are offered in bulk.
Individual customers – the most potential audience of this banking model. The expansion of
branches needs to meet the demand for multi-functional banking services. From there,
customers can experience all the products and services available at the branch simply and
easily.
Besides, the services that retail banks provide also need to be modernized step by step to
provide the best services. From a modern, friendly transaction space to a system of
machines such as automatic ATMs... will be a timely addition to retail banks to be able to
win the hearts of customers.

2.3 The group of products that Tan Cang Branch is deploying

Deposit product group
Products in the deposit group will include packages with the following criteria:
- By the term of deposit: with term and without term.
- By sending time: 1 week, 2 weeks,... to a maximum of 60 months.
- By interest payment period: interest is prepaid, paid later, and paid monthly.

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According to the concept of the WTO: “Retail banking is a place where individual customers can
come to transact at the bank's transaction points to perform services such as: Saving money and
checking accounts, mortgages. loans, credit card services, debit cards and other related services”.
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- According to specific products: traditional/flexible withdrawal/retirement/for children
/Online/ Mobile,...

Loan product group

The loan products that an individual relationship professional needs to sell will include a
variety of packages depending on different criteria:
- According to the customer's assets: mortgage loan (with collateral), unsecured loan
(without collateral).
- By loan term: short term (under 12 months), medium term (from 12 months to 60 months),
long term (over 60 months).
- By loan purpose: consumer loans and business loans.
- Other categories: credit card loans, overdraft loans, and passbook mortgages,...

Card product group

The individual customer relationship specialist is required to participate in the sale of the
following card products:
- Credit Card (Credit Card).
- Prepaid Card.
- Debit Card (Debit Card).
- Other products and services such as insurance packages, money transfers, remittances, e-
banking services, etc.

Remittance product group

Applicable to customers who are settlers/settled abroad who transfer money abroad for
lawful purposes: donation, inheritance, lawful income transfer back to their home country to
settle down in accordance with regulations.
- Settlement card of Vietnamese settler/passport with a valid visa permitting permanent
residence or document proving that he is residing abroad
- Documents proving the lawful origin of the money transferred

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- ID card/Passport of the person authorized to transfer money. A legal power of attorney in
case the remitter is an authorized person
- Other relevant papers

Chapter 3: Fundamental problems of lending for the household business of individual

customers
3.1  Loan operations at Military Bank
3.1.1  Loan concept
Article 3, Decision 1627/2001/QD of the Governor of the State Bank of Vietnam defines:
“Lending is a form of credit extension, whereby a credit institution assigns a customer to
use a sum of money to use for a particular purpose and for a certain period of time
according to the agreement with the principle of having both principal and interest returned.
3.1.2  Lending Principles
Commercial banks are monetary organizations that carry out the activity of "borrowing to
lend". Moreover, banks have to pay interest on the capital they mobilize. Therefore, when
performing credit-granting activities, banks must always ensure certain principles, which
also guarantee the existence and development of the bank. Those principles are:
Use capital for the right purposes as agreed in the credit contract. When the customer and
the bank come to a commitment to borrow and lend capital, the two parties have agreed, the
consistency of the purpose of using the capital is shown in the contract. On the bank's side,
the loan decision is approved based on the appraisal of the project's quality. Ensuring the
correct performance of the contract, and using capital as committed not only brings certainty
in the ability to recover capital for the bank but also benefits customers. Because the use of
capital for the right purpose contributes to improving the efficiency of loan use, ensuring the
debt repayment ability for customers. Moreover, it helps customers to ensure their
credibility and build a good relationship with the bank.
Return the principal and interest on time as agreed in the contract. Derived from the bank
borrowing to lend, so after a specified period, the borrower must return the money to the

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bank so that the bank can repay the depositor. The interest earned from the interest rate
difference will help the bank offset and cover operating costs.

3.2  Loans for household businesses at Military Bank - Tan Cang Branch
3.2.1 Concept 
Loans for household businesses are a group of credit products that support capital to help
customers supplement their working capital or invest in development to buy machinery,
equipment, means of transport, upgrade facilities, and invest in production and business
activities. facilities, factory expansion…

3.2.2 Features of lending for household business

According to the above concept, we can see some characteristics of business and service
loans for individual customers:
- Borrowers are individuals, households, cooperative groups, and private enterprises.
- The purpose of the loan is to supplement working capital or buy machinery, equipment,
means of transport, and expand factories...
- Customers use the loan amount for profitable activities, the source of debt repayment is
associated with the use of the loan amount.
- Customers are very sensitive to loan interest rates.
Classification of loans for household business, similar to lending activities at commercial
banks, loans for household businesses are divided according to the following criteria:
Based on the time: including short-term, medium-term, and long-term loans
Based on the loan purpose: based on the loan purpose of the customer, loans for production,
business, and service are classified according to the following main purposes: Loan to
supplement working capital shortage in the process of household business payment for
supplies, raw materials, goods, and necessary expenses…; Loans for investment in fixed
assets: machinery and equipment of great value.

3.2.3 The actual situation of lending for household business at Tan Cang Branch

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The current status of production and business loans for science and technology at MB- Tan
Cang Branch is providing credit to more than 50 individual customers with product-
Production and business loans. The store operates widely in all districts in Ho Chi Minh
City. Which, more than 70% of customers have operating areas in Tan Binh and Tan Phu
Districts with the main business of trading in fabric, and ready-made clothes, at the Tan
Binh wholesale market, "silk road",... The Branch's main loan balance for production and
business focuses on trade and commercial production of consumer products,...

The main feature of these individuals is that trading activities mainly take place between
individuals and individuals. Simple and small business form. The operational structure
includes the household head, sales staff, and delivery staff. Because household businesses
trade with each other, the cash flow between individuals is difficult to manage. In order to
be able to distinguish between cash flows from business activities of household businesses,
or cash flows from other purposes, it is necessary for credit appraisal officers to understand
the methods and methods of doing business with the group client. Therefore, the biggest
difficulty in risk management in production and business lending for individual customers is
cash flow management and loan use purposes. Although at present, lending for production
and business for science and technology at MB Tan Cang Branch does not have overdue
debts, debts to pay attention to, bad debts, etc. However, a hot growth situation is happening
warning signs for MB Tan Cang and MB in general. Reason: Firstly, lending for production
and business is very difficult in managing customers' capital use purposes. For example, for
a home loan, we can easily check that the customer's intent is real by doing a reality check.
However, for production and business loans, it is impossible and very difficult to evaluate
the use of loans by customers. Secondly, business loans are simple and convenient products
for customers who need to use capital in a short time without having to prove the purpose of
the loan. Thirdly, the economic trend increasingly encourages people to start-up, do
business, and create profits for the economy.

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3.2.4 Factors affecting the efficiency of household business lending for individual
customers
Customer's capacity: Including financial capacity, market capacity, production capacity,
customer management capacity, etc., which directly affects credit performance. Whether a
credit is repaid on time or not depends greatly on the capacity and level of the customer in
the business. This is a decisive factor in whether customers use loans effectively or not. If
the customer's capacity is limited, cannot correctly predict the fluctuations of market
demand, the ability to analyze, evaluate and forecast changes in the business environment
are low, the professional level is not high, use Inefficient resources, old and outdated
technology, low management level, etc., the production and business efficiency certainly
cannot be high, the competitiveness is low, the ability to generate revenue sources for Bank
debt is limited. Thereby affecting the efficiency of production and business lending and
service provision of the bank.
Ethical behavior of the customer: In a credit relationship, the customer's moral quality is a
decisive factor in the goodwill to repay the debt as well as the level of honesty and this
determines the customer's debt repayment activities. Therefore, it also affects credit
performance.

3.2.5 Contents of customer appraisal for household business loans

The customer appraisal process at MB usually includes the following tasks:
Firstly, RM staff visit residences, places of production, business, and services. Loan
documents provided by the customer are transferred by Loan CSR after being reviewed,
proactively arranging an appointment with the customer together with the valuation staff to
come to the place of residence, where the collateral is located, and the service point. of
customers ... to record and evaluate the situation of production, business, and service, living
conditions of customers. The information that needs to be clarified about the financial
situation, production, and business activities, TS ensures… RM staff must directly interview
the customer. The information provided by the customer should be recorded through contact
information clues.

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Secondly, collecting information related to customer activities. Based on the content of each
type of customer appraisal report, the information needs to be collected appropriately.
Information sources can be collected through customer records stored at MB, Credit
Information Center - CIC, through competitors, customers' partners, and other media such
as the Internet, newspapers…

Appraisal content
- Evaluation of legal documents: verifying the validity and legality of household
registration, ID card, marriage registration certificate, customer's passport, business
registration license...
- Appraisal of customers' loan use purposes include: Check if the customer's business item
is consistent with the business registration certificate; Evaluate the feasibility of the
production and business plan built by the customer to estimate the reasonableness of the
selling price, purchase price and other costs: management, delivery, transportation, loading
and unloading, warehousing , vouchers, depreciation, brokerage commissions... according to
the reference prices in the market; Verify the implementation progress of the business and
operation plan and the amount of capital needed to supplement the business and operation
plan
- Assess the financial situation and source of income to repay customers. Based on the
information provided by the customer, RM staff conducts an appraisal of the practicality
and value of the assets owned by the customer, the investments, and the financial support
resources for the customer. to assess the financial viability of the client. Verify the
customer's monthly income source to ensure the customer's debt repayment source: income
from business activities, salary income, rental income, and income from capital contribution
activities. Assess the living standard and determine the family's living expenses in order to
assess the financial ability and the remaining accumulation level used to repay the loan,
thereby concluding the customer's debt repayment ability.

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Chapter 4 : The general process of lending activities for household business and
analysis a realistic document of household business loans
4.1 The general process of lending activities for business household individual
customers includes: 

Sour
ce: Design by author Nguyen Ngoc Huyen Nhi

Step 1: Make a loan application

This is the step where the credit officers "guide customers to prepare the credit application".
Specifically:
- For legal documents: Certificate of business registration, confirmation of having business;
Identity card of the customer and his/her spouse; Household registration book, marriage
registration; Contract Labor; Other documents as prescribed by the Bank.
- For loan application file: Loan application letter; Report on financial situation” (within the
last 3 years) and updated to the present time; Detailed list of outstanding credit balances at
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credit institutions at the time of borrowing” (if any); Statement of payment accounts at
payment institutions; Economic contract/joint venture contract; Production and business
plan, financial plan (if any); Loan plan/ Investment project; Other relevant documents…

Step 2: Appraisal of the application

The RM checks the overall profile, make sure complete valid truthful then determine
whether the customer belongs to the group of customers with "bad credit history" according
to MB's regulations. Then, the credit officer appraises the production and business plan, the
plan to use the loan capital, the debt repayment ability and security measures of the
customer; Evaluate the benefits, potential risks, make a loan proposal or refuse a loan.

Step 3: Deciding on credit granting

The application is transferred to Director or Deputy director branch through related
departments according to stipulate”. The RM notify the results of approval or disapproval
grants credit to customer then proceed draft contract credit.

Step 4: Disbursement
The entire "credit" contract, after being fully approved and signed, will be reviewed and
disbursed according to regulations.

Step 5: Check, monitor credit and manage debt collection

This step plays the role of minimizing “probable credit risk” through enhanced recognition,
control and continuous monitoring of timely and timely debt collection. On a monthly,
quarterly or 6-monthly basis, depending on the nature of the loan, the credit officer has the
"responsibility for checking" to monitor the business performance, financial position of the
customer, and assess the viability of the loan. Customer's debt repayment capacity reminds
customers to fulfill their debt repayment obligations on time.

Step 6: Liquidation of the credit contract (if any)

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The Bank drafted the Contract liquidation minutes, both parties signed the Contract and kept
the records, and at the same time delivered the security measures to the customers.

About the collateral in the contracts lending:

Collateral must be able to perform the function of being the second source of debt
collection, that is, it must have market value, so special assets have the following
characteristics:
Firstly, the value of the collateral must be greater than the guaranteed obligation. Because
the credit card is not only a source of debt collection for the bank, it also has the meaning to
urge the borrower to repay the loan or else they will lose the property. Therefore, if the asset
value is less than the secured obligation, the borrower is likely to have an incentive not to
repay the loan. The secured obligation includes principal, interest (including overdue
interest), and other expenses, except where there is agreement on interest and fees that are
not within the scope of the security to be performed.
Second, the fixed assets must be liquid. The asset must be available to the market for
consumption because the liquidity of the asset is related to the interest of the lender. Low
liquidity (or hard-to-sell assets) is often less acceptable to banks, medium liquidity is
acceptable but must take into account costs due to prolonged processing times.
Third, there is a sufficient legal basis for the lender to have the right of priority in handling
assets. This characteristic is reflected in the following aspects: the property must be legally
owned by the borrower or guarantor and permitted by law to be transacted, and at the same
time, there must be sufficient legal bases for banking – loans can only be given priority.

4.2 Describe the lending document of customer TRAN NGOC THANH

Overview about customer
- This is an old customer, he had another loan in MB in 2019.
- In this case, he wants to be getting a credit limit of 5,000,000,000 VND to complete
working capital for production and business activities.
- He is an owner of a wood household business in Ho Chi Minh City.

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- MB has many credit products, but in this case, RM staff offer him a Super preferential
business loan package with interest 8,5%/year, +/- 1,3% floating rate.
- Campaign code: 1230002 KHCN_CT UU DAI CV SXKD 15000 TY 8.5 PT
- Principal debt: 11 months, interest debt: 1 month

Overview information about activities of TRAN NGOC THANH business household

- Legal business activities: Business registration
- Parent industry: Cultivation, exploitation, production, and trading of timber
- Subcategory: Wholesale of bamboo, timber, and processed wood
- Sector: Trade/Service
- Conditional business lines: No
- Time of business establishment: 14 months
- Customer's business experience: 14 months
- Business Location: Ho Chi Minh
The customer has to enter into security agreements, including executing mortgages, liens,
factoring agreements, accounts receivable financing arrangements, conditional sales, sale
and leaseback arrangements, and installment sales contracts; ...

The steps for a lending activities of the customer Tran Ngoc Thanh
Firstly, Credit specialists will conduct customer due diligence. An appraisal is a process by
which a credit officer reviews the accuracy of the provided customer profile, and compares
and verifies the information. From there, determine whether the customer is suitable for the
bank's lending conditions. The credit officer may ask additional questions to the customer
himself or to those involved and ask the client to add documents if missing. The customer
needs to provide legal documents such as an ID card; Certificate of business registration,
confirmation of having a business; Confirmation of marital status.
Secondly, customers have to sign Loan application letters; Other relevant documents. The
RM staff will collect this document and then make the following stages. CIC will be
checked for both the new and old ID number, Business registration number… to decide

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whether he can be getting a loan or not. RM staff will go to the business location and have a
real appraisal. The customer has to provide: Sales Invoices, Economic Contracts, Orders
Goods, Invoice list, Delivery and delivery minutes, Goods import plan, ... which clearly
specifies the name of the supplier, the type of goods purchased, the payment amount.
Parallelly, collateral also be appraised by MB.AMC to determine the real value and if this
collateral has any unpermitted condition.
The factual assessment provides the following information:
Based on TB 2161 dated 12/05/2021, he is the subject that is applied to the Flexible
business loan program. Based on the household business registration certificate No.
41W8065382 registered for the first time on 20/02/2023, household business name:
HOUSEHOLD BUSINESS TRAN NGOC THANH with the profession about Trading
bamboo, cork, timber, and processed wood, the customer is the sole representative. When
the RM has looked up the household business, it still works normally.
When the RM has looked up the household business, it still works normally.
From the reality appraised, the credit officer has some business performance assessments:
Operation method follows the stages of from customer orders to input confirmation to
delivery after 30-45 days and then use the winch/ crane to load it onto the truck and take it
to the workshop. In this period, the customer will spray against termites and insects,
duplicate, cover with canvas, and end with the stage of sales (Semi-monolithic or semi-
circular or 5x10cm rods; 10x20 cm. Length depends on type 2m - 3m - 5m, trash
wood/sawdust ). They use a 2.5 tons tow or crane to put into the finished product sawing
CD and deliver to the customer.
The customers have some individual input who specialize in importing wood such as Tuan
Anh Wood, Hoang Phat Wood, Wood Phu Thanh, and Thanh Binh ..., customers will
receive goods at Cat Lai port, Binh Duong port, after 30 -45 days of ordering, 100%
payment on receipt of goods.
The Output includes households trading in wood, and furniture, companies in Ho Chi Minh
City, Binh Duong, and neighboring provinces such as Cuong Nga, TT Decor, Nguyen Kim,

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Architecture Green, Bach Nguyen Store, SQL Company... => the output variety is relatively
stable and continuous.
From actual appraisal, this business household has the result following. Based on the
customer's sales diary from 23/02/2023 to 01/03/2023, the average monthly revenue was
2,421,428,571 VND/month; cost of goods sold was 1,816,071,429 VND/month (accounting
for ~ 75% of revenue); labor expenses was 120,000,000 VND/month (10 employees:
workers, drivers, porters...); shipping cost: 80,000,000 VND/month; tax expenses
(terms/licenses): 83,333,000 VND/month; workshop/store rental: 35,000,000 VND/month;
other expenses (electricity, water): 30,000,000 VND/month; average monthly profit:
340,273,810 VND/month (profit rate 14%)
The proposed business unit to record the customer's income as 340,273,810 VND/month is
appropriated and conforms to TB 2161.
Thirdly, after analyzing the business situation, RM will collect all the documents and then
apply them to HO, HO is the unit that decided whether the loan is committed or not.
Maximum 4 hours HO has to have a decision that this case is approved or not.
RM staff will inform the approval to customer and prepare for the disbursement, and then
the customer will sign into the relevant records.
Disbursement is the final step of the loan process. After receiving the loan decision, the
bank will proceed to disburse the amount you want to borrow according to the agreed
contract. The disbursement can take place once or many times depending on the loan case.
Depending on the loan purpose of each customer, the method of disbursement will also
vary. Accordingly, some popular disbursement methods today are as follows:
Cash disbursement: customers go directly to the bank and receive cash;
Disbursement via account transfer: the bank will transfer the disbursed amount to the bank
account of the loan beneficiary (who is the Customer or the supplier of goods and services,
the seller of Real Estate, Vehicles of Transport, etc.). load).
In addition, RM staff need to take care of the customer after the transaction. In the event
that a loan incurs bad debt, bad debt, etc., the individual customer relationship specialist

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must be in charge of transferring debt groups, handling early debt collection, urging
customers to repay, or initiating lawsuits to Debt collection when needed.

4.3 Some tools/websites that a an RM use to create a complete household business

loans
4.3.1 CIC (Credit Information Centre)
Bad debt and CIC have a very close connection with each other. CIC stands for Credit
Information Center. CIC is also known as the Credit Information Center, an organization
under the State Bank of Vietnam.
CIC has functions such as: collecting and storing, then analyzing and forecasting credit
information of individuals and organizations on a common system. All of the above work is
to serve the general operation of banks and credit institutions. With the above CIC concept,
the functions of the accompanying CIC will include:

Registering credit for all customers according to the issued regulations, supporting all users
nationwide to check CIC quickly.
● Aggregate information on bad debts of individuals or organizations. Then the CIC
system will process and store the credit information.
● Prevent and limit possible credit risks to the lowest level.

● Has the right to require banks and credit institutions to send customer profiles so that
CIC can give credit scores to each individual and business organization.
● Providing credit products and services in compliance with Vietnamese laws.

4.3.2 MB.AMC (Asset Management Company of Military Bank)

In terms of legal, AMC and Banks are two independent legal entities, but in terms of
business, they are essentially a division of the bank. Currently, banks all identify AMC as a
subsidiary and the most special type of subsidiary. During nearly 20 years of establishment
and development, MB.AMC confidently asserts its position with 3 key areas: Debt

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recovery; Consulting on Property Appraisal; Asset Management, and Exploitation. The
strong growth in both scale and field of operation, constant innovation and improvement of
labor productivity, etc. has helped MBAMC to become one of the leading prestigious AMC
companies of commercials bank.
Debt recovery and settlement
The company was born to serve the needs of debt management and asset exploitation of the
Military Bank, expand trading relationships, collect debts, and deploy debt trading from
other credit institutions. healthy and smart transparency of the financial situation, in line
with the strategy to encourage debt cleaning in the banking system in particular and the
national economy in general.
Consulting on Property Appraisal
MBAMC is one of a number of valuation companies with full legal functions and
professional capacity to meet the needs of customers for different valuation purposes.
Property valuation services meet many practical needs with different purposes such as
buying - selling, borrowing capital, contributing capital to joint ventures, equitization,
proving assets... value assets, and making the best decisions for your business.

Real estate business- Exploiting office buildings

Currently, customers know MBAMC as a professional real estate investor and operator, a
real estate service provider with strong financial potential, a large and stable number of
customers, and a group of Experienced professionals who have high education and always
maintain a good reputation with customers. Such as : Service of exploiting office building;
Real estate buying and selling brokerage services; Management services, marketing real
estate projects; Real estate advertising, sale, and rental services; Real estate investment and
business consulting services; Real estate trading floor services.

Developing a Military banking network

- Management and Development of investment projects
- Establish investment projects

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- Investment consulting project management.
The project management unit of the Military Commercial Joint Stock Bank is under the
Debt Management and Asset Exploitation Company to meet the development requirements
of the Military Bank and expand its network nationwide.

4.3.3 CRM
CRM has some main functions such as Assigning tasks, Managing customer portfolios,
Viewing KPI score. CRM system is a software package that can adjust parameters for
integration and manage all aspects of customer interaction within the organization and
improve the organization's ability to handle customer service, sales, marketing, online
transactions and ordering
In MB, each civil servant has their own duty, so the organization needs to have a website to
manage the staff and their assignments. Besides, not only T24 but also CRM has functions
to manage customer portfolios such as information about LD, PD.
KPI in MB is about 750 per person and CRM manages the score per month. For example,
the KPI score for opening a new app is 3.5; for a 1 million disbursed money about 162.

4.3.4 T24 (Core Banking - Temenos5)

In essence, this is a software system integrating informatics applications in information and
asset management; transactions, and risk management... in the banking system.

In terms of characteristics, Core Banking is the nucleus of the entire information system of a
banking system. Information system here is understood to include information about
money, collateral; transactions, papers, accounting books; computer data, and information
systems… All transactions are transferred through the Core Banking system and in an

5
Temenos is banking software. This unit provides fund management software, core banking,
payment and fund management software that is cloud-based, cloud-based, enabling banks to
deliver a zero-channel, omnichannel customer experience. friction and achieve operational
excellence.

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extremely short period of time, they still maintain operation and process information during
the operation period.

Source: Internet

It can be said, Core Banking is a system to centralize data anywhere, anytime. The Bank's
database is centrally managed by relationship and module: deposit, international payment,
money transfer, trade finance, lending, appraisal, capital source, and Internet Banking…

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 Source: Internet
● Lending and Deposit module, abbreviated as LD;

● Interbank and International Foreign Exchange (Interbank and International Foreign

Exchange) module, abbreviated as FX;
● Derivatives Management Module (Derivatives), abbreviated as DX;

● Fund Transfer module, abbreviated as FT;

● Securities Trading Module (Securities), abbreviated as SC;

● Customer Management Module (Customer), abbreviated as CUS;

● Module Money Market (Money Market), abbreviated as MM;

● Customer account management module (Account), abbreviated as AC;

● Limit Management Module (Limit), abbreviated as LI;

● Past Due Loans module, abbreviated as PD;

● Transaction fund management module (Teller), abbreviated as TT;

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 ● Module for Management of Required Reserve (Cash Reserve Ratio), abbreviated as
CRR.

4.3.5 SmartBPM (Business Process Management)

SmartBPM is the website that RM create customer’s loan application and create debt
collection. SmartBPM can eliminate complicated paperwork, shortens loan processing time,
and improves customer experience. Technologies in hyper-automation such as RPA can
automatically extract relevant loan data from loan application systems in a short time and
reduce error-prone manual paperwork. Helping organizations and businesses build a system
of business rules, SLAs, and KPIs in line with the policies and guidelines of the
organization and business, but still ensure the ability to manage as well as flexibly change
when necessary. BPM aims to improve and optimize an organization's business processes,
powered by Business Process Management Technology

Optimize operational efficiency: The adoption of super automation allows banks to

streamline operations, improve accuracy, speed up process processing, and improve overall
customer experience, thereby improving ROI and profitability. Hyper-automation
technologies are a tactical solution that reduces costs while moving people to mission-
critical tasks.
Compliance Assurance: Banks pay special attention to compliance to avoid penalties, risks,
and financial fraud. Hyper-automation of management processes enables banks to meet
complex regulatory reporting requirements, improve reporting accuracy, and ensure
transparency to improve compliance.

Customer experience: Hyper-automation gives banks the flexibility to manage large

volumes of services and respond to diverse customer requests while improving the customer
service quality. As the banking industry continues to evolve, it is essential to adopt new
technologies to reshape the way we operate and add value to improve the customer
experience.
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In the MB system, having FTR6 (first time right) is a management motto associated with the
effective use of resources (in the definition as “just-in-time”), in order to limit errors in
production processes - management to save resources used to repair and overcome those
“broken points”.

4.3.6 D-form (SMART FORM7)

Previously, if there was a need to open a new account, card, or register for value-added
services of the bank such as SMS/Internet/Mobile banking, customers would have to go to
transaction offices and present documents according to their preferences. body and fill out
all forms by hand. Consultants also struggle with filling in many forms on many different
software systems, and sending many applications to the Controller... then the Controller has
to approve each service, which is very costly. data entry and exchange time.
SMART FORM solves this problem. Simply put, this is a solution to support customers to
open payment accounts, cards, SMS Banking, and Internet Banking... via phone, internet,
and can be done anytime, anywhere.
Nowadays, it only takes 3-5 minutes on average for the above complex steps (excluding
waiting time, scanning & document approval), which means saving up to more than 80% of
the time, equivalent to increased productivity and 5 times more labor. Not only that, but
SMART FORM also helps to reduce the risk of errors from manual filling, simplifying
storage and customer care.

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Do It Right The First Time is a principle from management accounting related to just-in-time
(JIT) where a company only receives goods when it needs them to reduce inventory and production
management costs. In MB, FTR has a meaning that the staff has to complete the document in the
determined time, and if the staff surpasses that time, they will have no Commission money.
7
SMART FORM is a component of the SMART DIGITAL BANK ecosystem, the total solution for
digital banking transformation.
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