Solution to reduce bad debt at Vietinbank – Gia Lai branch in the period 2017 - 2019

Abstract

Risks are always present in the operation of commercial banks today, including Vietinbank. Banks always try to develop credit scale but at the same time ensure safety in operations. The rapid increase in bad debt can lead to serious consequences, possibly even bankruptcy of the bank. As one of the credit-scale branches in the top of the big branches of the Vietinbank system, Vietinbank Gia Lai branch has always controlled the bad debt situation since its inception. However, in the past 3 years, the rapid increase of bad debt has affected many aspects of the Branch's business operations. Therefore, the urgent need is to find the underlying causes that lead to the rapid increase of bad debt problems in recent years to find suitable solutions for sustainable development. Author conduct this research to study the business activities of Vietinbank – Gia Lai Branch, especially focus on the bad debt increasing in the period 2017 – 2019. The method of comparison, interviewing were used to find out the main problem the Branch is facing, the main cause leading to the problem and recommend some possible solutions to deal with the problem. Author hope that the research will contribute a small effort in helping the organisation develop and gain maximum profit in the future.