THE SITUATION AND SOLUTIONS TO ENHANCE THE EFFECTIVENESS OF CREDIT SCORING, CREDIT RATING AND CREDIT RISK MANAGEMENT OF CORPORATE CUSTOMERS AT MB BANK - THANH CONG BRANCH

Abstract

This thesis is for graduation of the Bachelor of Finance Banking – relatived to Commercial Bank. Our thesis group has 6 members: Dao Thi Huong Lan, Nguyen Minh Duy, Nguyen Thi Thuy Duong, Vu Ngoc Luong, Do Minh Thang, Trinh Hai Thinh. Topic: The situation and solutions to enhance the effectiveness of credit scoring, credit rating and credit risk management of corporate customers at MBbank – Thanh Cong branch. The cause chose this topic: In 2012-2015 almost banks in Vietnam get many problems and difficult issues on their operating process. Bad debts were accounted that increased rapidly and rose many times. So the credit scoring is a necessary tool for each bank. It helps each bank make specific strategies and have clear plan to solve customer who had bad debt signal. Moreover, credit operating is one of the most important of banks and other financial institutions to maintain their operating. So credit risk management is a vital task in operation of bank.7 Purpose: In this report, we concentrate to find out the method and how to MB bank rate credit. Therefore find out the deficiencies of the credit scoring system to recommend and find some solutions. Design/ Methodology/ Approach: Using research methods, theories about credit risk management, probe to take the figure then analyze by some way to have correct view with the credit scoring system of MB bank. Research limitation: To collect the correct, specific figures is the difficult work with all of member of our group when all of them are internal figure, doesn’t permission to provide for external people. All of us have no opportunity work in MB bank environment and doesn’t experience to measure correctly. Value: This research will give the most practical solutions which can helpful for MB bank’s credit scoring system, it will more effective, correct and faster. In addition drawing lessons for other banks in the system with the solutions, a new proposal to improve the efficiency of credit risk management