Bad training skill of Debt Collection Center and Verification Department at VP Bank

Abstract

Bad debt is considered a big problem for the banking system in Vietnam in particular and the economy in general. In recent years, the bad debt ratio in Vietnam has been constantly rising. This is a consequence of many internal and external causes. But in it, the outstanding problem is the limited risk management of commercial banks but directly. Recognizing that, the state bank as well as commercial banks have focused on completing the management of bad debts. This is the basis for controlling and minimizing losses in credit activities, ensuring banking operation efficiency and promoting the country's economic development. Vietnam Prosperity Joint Stock Commercial Bank is one of the joint stock commercial banks established early and developing steadily in Vietnam. VP Bank is constantly expanding credit activities and many other products and services. In parallel with this development orientation, risks arising from credit activities increased significantly, reflected in the annual bad debt ratio of the bank. Based on the symptom is high NPL rate in retail segment, after verifying potential problems, the main problem of bad training skill in debt recovery and verification is revealed with two main causes are pointed out which are Since then, by using internal reports and conducting in depth interview with some staffs to understand the main problem, the thesis would like to propose some solutions to improve the management of bad debts in credit activities of VP Bank.