NGUYN Tr Dng Improving the method of credit rating at Oceanbank Eric LAMARQUE lamarquee@wanadoo.

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List of abbreviations Preamble Chapter I CREDIT RATING FOR CORPORATE BANK LOANS (CRFCBL) 1.1. CREDIT RISK 01 1.1.1. The concept of credit risk 1.1.2. The reasons for credit losses 1.1.2.1. The objective causes a. Due to the unstable economic environment b. Risks due to legal environment c. Inspection, control and supervision of the central bank is not effective 1.1.2.2. Risks due to subjective reasons a. Risk from borrowers b. Risk from the banks to lend 1.2. CREDIT RATING FOR CORPORATE BANK LOANS (CRFCBL) 1.2.1. Credit rating (CR) -definitions 1.2.2. The need for credit ratings in bank credit activities 1.2.2.1. Corporate credit rating bank loans 1.2.2.2. The need for credit ratings in bank credit activities a. Due to limited credit risk requirements b. The requirement of the customer selected for financing c. To support loan classification and provisioning risks d. seting customers policy 1.2.3.The role of CRFCBL 1.2.3.1. For commercial banks, 1.2.3.2. For financial markets 1.2.3.3. For firms ranked 1.3. PRINCIPLES AND CRITERIA FOR CR (CREDIT RATING) 1.3.1. CR principles

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1.3.2. The indicators are often used to CRFCBL 1.3.2.1. The financial indicators 1.3.2.2. Non-financial indicators 1.4. SUMMARY CR IN THE WORLD AND LESSONS LEARNED FOR VIETNAM 1.4.1. Summary credit rating in the world 1.4.1.1. U.S. credit rating at 1.4.1.2. Credit rating in Japan 1.4.1.3. Credit ratings in Thailand 1.4.1.4. Credit rating in Malaysia 1.4.2. Lessons learned on CRFCBL to Vietnam 1.4.2.1. Commercial banks SET the credit rating system of their own 1.4.2.2. Needed to establish an independent credit rating organization (CRO) 1.4.2.3. Building a full range of indicators to assess the creditworthiness of borrowers 1.4.2.4. Refer to the ranking results for the investment decisions Conclusion Chapter I Chapter II: SITUATION OF CRFCBL IN COMMERCIAL BANK OCEAN (OJB) 2.1. ABOUT COMMERCIAL BANK OCEAN ( OJB) 2.1.1. About the process of formation and development 2.1.1.1. Summary of the process of formation and development 2.1.1.2. Organizational Structure 2.1.2. The operation 2.1.2.1. Financial situation and results of operations 2.1.2.2. Situation credit activities 2.2. SITUATION CRFCBL IN VIETNAM 2.2.1. Credit Information Center State Bank 2.2.2. Firms do business credit information 2.2.3. situation of CRFCBL at commercial banks 2.3. THE STATUS OF CRFCBL IN OJB 2.3.1. Process CRFCBL 2.3.2. criteria for assessment
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2.3.2.1. The financial indicators 2.3.2.2. Non-financial indicators 2.3.3. Scoring method 2.3.3.1. Scale of the financial indicators 2.3.3.2. Scale of non-financial indicators 2.3.3.3. Points for Reward and punishment 2.3.4. Ranking Results 2.3.4.1. For business relations as loyalities 2.3.4.2. For new business with the first credit 2.3.5. Customer characteristics under CR system of OJB 2.3.6. For example illustrated CRFCBL 2.4. Comparison the method CR of OJB with other organizations 2.4.1. Bank for Foreign Trade of Vietnam 2.4.2. Industrial and Commercial Bank of Vietnam 2.4.3. With the State Bank (CIC) 2.4.4. With the First Securities Company 2.5. EVALUATE THE SYSTEM CR IN OJB 2.5.1. Results achieved 2.5.1.1. Deploying CRFCBL on all systems 2.5.1.2. Improving credit risk management 2.5.1.3. Based on the results of credit ratings to finance 2.5.1.4. set policys customer base on the result of CR 2.5.1.5. Support lending decisions - more quickly 2.5.1.6. CRFCBL method is simple, easy to implement and apply 2.5.1.7. CRFCBL method includes several important criteria 2.5.2. The limitations of CRCBL 2.5.2.1. Criteria for assessing inconsistent 2.5.2.2. the process of CR not clear 2.5.2.3. Subjects rated unsuitable 2.5.3. The cause of the limitation 2.5.3.1. Objective reasons a. lack of Information for ranking b. there arent many organization credit rating 2.5.3.2. Subjective reasons a. Awareness of credit rating is not appreciated
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b. Quality of credit officer is not even c. there isnt own databases in the bank d. the results of CR has not been applied in the credit risk management e. Many cases ranking is indicative form Conclusion Chapter II Chapter III: RECOMMENDATIONS FOR IMPROVING METHOD OF CRFCBL IN OJB 3.1. ORIENTATION OF THE OJB IN FUTURE 3.1.1.The basic orientation 49 3.1.1.1. Orientation about credit 3.1.1.2. Oriented about capital 3.1.1.3. Orientation about service 3.1.2. The basic criteria to 2014 3.1.3. Establishing the CRFCBL system 3.2. RECOMMENDATIONS FOR IMPROVING METHOD OF CRFCBL 3.2.1. For State 3.2.1.1. establishing an independent credit rating organization 3.2.1.2. Improve the quality of credit information CIC 3.2.1.3. Building data systems to provide business information quickly, fully, exactly 3.2.2. For Ocean Commercial Joint Stock Bank 3.2.2.1. Proposals on corporate governance a. Raising awareness about the credit rating b. Develop own information systems for OJB c. Strengthening education and training d. Execute popularly Credit Rating in credit activities e. Inspect Regularly or irregularly the activities of credit rating 3.2.2.2. Proposals to improve the ranking method a. Adding weights to the scoring criteria b. Setting up the software program to make rank c. Supplement or replace the financial indicators d. Supplement or replace the non-financial indicators e. Change order number and symbol rate 3.4. METHODS OF CRFCBL AFTER BE ADJUSTED
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3.4.1. Step one, identify economic sectors 3.4.2. Step 2, determine the size 56 3.4.3. Step 3, calculate and scored financial indicators 3.4.4. Step 4, calculate and mark the non-financial indicators 3.4.5. Step 5: Calculate the total points 3.4.6. Step 6, determine the results of credit rating 3.5. Example illustrated CRFCBL one specific firm Conclusion Chapter III CONCLUSION APPENDIX 01 APPENDIX 02 REFERENCES

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