CHAPTER 1: OVERVIEW OF COMMERCIAL BANK

1.Concept and nature of the commercial bank 2. Functions and type of the commercial bank 3.Organization and operation of the commercial bank 4. Collect - the cost and profitability of commercial banks

.CONCEPT AND NATURE OF THE COMMERCIAL BANK

Concept of the commercial bank A commercial bank is a financial intermediary which collects credit from lenders in the form of deposits and lends in the form of loans. A commercial bank holds deposits for individuals and businesses in the form of checking and savings accounts and certificates of deposit of varying maturities while a commercial bank issues loans in the form of personal and business loans as well as mortgages

Commercial banks are in the business of providing banking services to individuals, small businesses and large organizations. While the banking sector has been consolidating, it is worth noting that far more people are employed in the commercial banking sector than any other part of the financial services industry

Financial institutions are those organizations, that are involved in providing various types of financial services to their customers specially cridit , deposit, payment service . It performs most of finance function to compare with any business organization in the economy

Institution of organization

ACCORDING TO LAW OF BANK IN VIETNAM IN 2005

Banks are one type of institutions which implement the entire operation of banks and other related business activities

Credit institution is a enterprise which banking service.Its business is to receive deposit ,use money for lending , and provide payment service Credit institution is the bank Credit institution is non- banking ( it does not receive non term deposit and make payment service

FUCTION OF COMMERCIAL BANK

Function of commercial bank The credit intermediary function: It includes credit intermediary and payment intermediary among the enterprise in the economy This is important function of commercial bank. It shows not only nature of commercial bank and also main duty of commercial bank In this function ,commercial bank play role of credit intermediary , make deposit of mobilize funds temporarily idle money in the economy and turn source of credit for loaning

Perform the credit intermediary function , commercial banks perform its specific task following No term deposit , term deposit of economy business and private in Vietnam dong or USD Accept deposit of those organization and private Issue banks debentures and bonds to raise the capital in the society

Short, medium and long term loans for its business and private Discounting bills and documents which has it value

Financial intermediaries perform as provider of funds to those who need money. From banks, credit unions, savings & loans, mutual funds, insurance companies and pension funds, financial intermediaries provide funds for all manner of borrowers and investors. Whether it's a bank providing a personal loan, a mortgage lender or financial entities creating investment markets, financial intermediaries keep the flow of funds moving Financial intermediaries exercise great power and control over the country's economy. In theory, their network allows the country's financial transactions and money movement to keep funds flowing

PRODUCTION FUNCTION
It includes deposit and using resources to create products and bank service which will offer to the economy There are two characteristics of banking services First,

SOME MAIN SERVICES

Service and domestic money transfer Debenture service and international money transfer Entrusted service ( cash pick-ups, bo qun, chi h ) Construction consultant service, information provide Internet banking service

Bank head quarter Bank branch level 1 and level 2 Transaction office

COMMERCIAL BANK IN VIETNAM

Industrial and commercial bank of Vietnam (ICBV) Bank for Agriculture and rural development of Vietnam( BARDV) Bank for Investment and Development of Vietnam ( BIDV) Mekong Delta Housing Development Bank ( MHB) Bank for Foreign Trade of Vietnam ( BFTV )

III . ORGANIZATION STRUCTURE OF CB

Organization structure of CB Head Office with full offices: transaction office, credit office, payment office, treasury office, deposit , organization - administration office, international relationship office, information technology office Branch includes branch level 1 and level 2 in the local

Normally transaction office is opened in population people and having transaction need with the bank such as supermarket, school, industry areas

HEAD OFFICE

Each bank has its head office locating at financial economic central in the country or region , local Head office is ..Board of directior and CEO are in head office

MAIN TRANSACTION OFFICE AND BRANCHES

Main transaction office and branches are in its head office making transaction with the customers, performing operation of commercial bank.All performance of commercial bank often makes at main transaction office and branches of the bank

TRANSACTION OFFICE AND DEPOSIT OFFICE

SMALL BANK
Concentrate on small - medium community enterprises and population with large Closed relationship between director, manager and employee Normally the bank is impacted by changing of social and economic in local

ORGANIZATION STRUCTURE

BIG BANK
Under control of a Ca