INTRODUCTIONIn our country, there is no clear definition of banking

services. There is a view that, in the broadest sense,

banking services are all services that the banking system

provide to the economy. But in another sense, banking

services are not belong to the scope of trading curencies

and banking activeties (deposits, loans..), they are just

about activities associated with the collection of fees for

businesses, organizations and individuals to obtain profit.

Banking services is the very first type of financial

services.In the General Agreement on Trade in Services

(GAST), the World Trade Organization (WTO) define that

“Financial services are the economic services provided by

the finance industry”. financial services include insurance

services and services related to insurance, all banking

services and other financial services (excluding insurance).

We can understand that banking services means all

services are provided to customer by bank.

Typical banking services:

- Invisibility

- inseparable

- The number and diversification of banking services

with the socio-economic development, especially the

development of science and technology

- The unstable and difficult to identify

- The joint liability and a two-way flow of information

between banks and customers

- The relation between banks in providing services

- Risk

The type of banking services:

Depending on the model and the characteristic of the

banking system, there are varios banking services.In some

countries, commercial bank can do insurance services and

securities services, but not in another:

- Group of traditional banking services: receive-send

service; lending services, payment services, financial

leasing services, underwriting services, service release

papers, bank bond prices; left-right transfer services,

financial services investment

- The group of modern banking services: Card services,

banking services via telephone, internet banking, online

banking services.

- Other services: treasury services, collection

services, paying agent, consulting services, brokerage

services, securities agent release, storage and stock

management, insurance services, service preservation and

deposit

To learn about banking, group 2 would like to present

some kind of service that banks provide to customers. Better

understanding of the concepts, the advantages and

disadvantages of each type of service. Together, we find

solutions to overcome the difficulties of each service.

I. CURRENT ACCOUNT

1. Definition:

In active bank, a current account is a deposit

account opened at a bank or financial institution that, for

the purpose of providing a quick and safe means of access to

regular dishes deposits on demand , through a variety of

different channels. Thus, this account is named

other payment account.

2. The characteristics and approach :

The current account allows the account holder to make

or receive payments in one of the following forms:

Cash ( banknotes )

Cheque and deposit slip (payment commitment

papers)

Bank transfer (direct deposit)

Direct debit / credit directly 

Current Directive (instructions from the account

holder to the bank to transfer a certain amount after a

certain period of time to a / many other accounts)

Debit card or ATM card

EFTPOS (no direct payment using cash at the store)

Through the system SWIFT (bank account in a

foreign bank to bank transfer).

All current accounts provide the list of financial

transactions, or in the form of a statement of account or

the deposit book.

There are several ways to access deposits in

current accounts:

o The bank's branch

o Automated Teller Machine (ATM)

o Through telephone and online banking

o Banking letter

o The shops and dealers offer EFTPOS approach

3. Interest rate :

Unlike savings accounts in that the main reason for

sending money to profitable, the primary function of current

account transactions, so most providers either the current

account not pay interest or pay interest at lower interest

rates on balances.

4. Fee for service :

‐ Depend on a variety of factors, including the

overall level of interest rates for lending and savings of

each country, as well as depending on the value of

transactions and the number of channels accessible deposits

that financial institutions that offer.

‐ The fee financial transactions can be calculated

for each item per transaction or a fixed rate for a certain

number of transactions that (usually calculated on a monthly

basis). In countries where there are no service fee for the

transaction, people collect an annual fee for the service

circulation, such as debit cards.

5. Advantages:

Interest earnings on balance

Faster and trouble-free access to cash

Electronic payment

Checkbook facility for non-cash payments

Overdraft facility

Management of usual payments like wages and

expenses

Online management of money

No need to exchange money while one is abroad

No need to carry cash in bulk

6. Disadvantages:

The rate of interest that one earns on the balance

is very low

Services of package accounts have additional costs

Fine print and paperwork can be lengthy and

perplexing

Corporate businesses can be charged huge fees

Losing the card can restrict one’s access to cash

A limit may be imposed on the amount of funds one

can withdraw in a day

When opting for a current account, one should aim

at getting competitive interest rates, low

interest overdrafts and preferential offers on

loans.

7. Solutions:

Policy-making procedures simpler form

There are preferential rates for corporate

business

Optimal interest rate policy, there are promotions

to attract customers, to facilitate customer

participation.

Policy reasonable cost, fast charge collection

more convenient times.

Application forms secure optimal customer

information, ensure the absolute safety of

customer information.

II. SAVINGS ACCOUNT:

1. Definition:

Saving accounts are accounts maintained by

retail financial institutions that pay interest but cannot

be used directly as money in the narrow sense of a medium of

exchange (for example, by writing a cheque). These accounts

let customers set aside a portion of their liquid assets

while earning a monetary return. For the bank, money in a

savings account may not be callable immediately and in some

jurisdictions, does not incur a reserve requirement, freeing

up cash from the bank's vault to be lent out with interest.

2. Advantges:

Saving account encourages savings habit among

salary earners and others who have fixed income.

It enables the depositor to earn income by way of

saving bank interest.

Saving account helps the depositor to make payment

by way of issuing cheques.

It shows income of a salaried and other person

earned during the year.

Saving account passbook acts as an identity and

residential proof of the account holder.

It provides a facility such as Electronic fund

transfer (EFT) to other people's accounts.

It helps to do online shopping via facility like

internet banking.

It aids to keep records of all online transactions

carried on by the account holder.

It provides immediate funds as and when required

through ATM.

The bank offers number of services to the saving

account holders.

3. Disadvantages:

Quick and easy access to a savings fund is

tempting for some account holders, which can make

long-term saving difficult.

Savings accounts generally have the lowest return

when compared to other types of investments. Most

savings accounts also have a minimum balance

requirement.

If the account balance falls below the minimum

amount, the account holder incurs charges. Another

possible disadvantage is that the FDIC only

insures accounts up to a certain amount, which may

be concerning to individuals with savings of more

than the maximum amount.

Savings accounts offer relatively low interest

rates

4. Solutions:

Constantly promoting the reputation of the bank-

improving the quality of customer service

Continue to promote the marketing

Actively seeking idle deposits from the public

Enhanced training to improve the quality of bank

staff

Improvements and innovations in banking technology

Strengthen counseling to help people change their

habits keep your money at home

Diversifying forms of savings in people

III. CHEQUES:

1. Definition:

A cheque (or check in American English) is a document

that orders a payment of money from a bank account. The

person writing the cheque, the drawer, has a transaction

banking account (often called a current, cheque, chequing or

checking account) where their money is held. The drawer

writes the various details including the monetary amount,

date, and a payee on the cheque, and signs it, ordering

their bank, known as the drawee, to pay that person or

company the amount of money stated

2. Types of cheque:

Bearer cheque: when the word “or bearer” appearing on

the face of the cheque are not cancelled, the cheque is

called a bearer cheuque. The bearer cheque us payable to the

person specified therein or any other else who presents it

to the bank for payment. However, such cheques are risky:

this is because if such cheques are lost, the finder of the

cheque can collect payment from the bank.

Order cheque: when the word “bearer” appearing on

the face of a cheque is cancelled and when in its place the

the word “or order” is written on the face of the cheque,

the cheque is called an order cheque. Such as cheque is

payable to the person specified therein as the payee, or to

one elese to whom it is endorsed (transerred)

Uncrossed/ Open cheque: when a cheque is not crossed,

it is known as an “Open cheque”. The payment of such a

cheque can be obtained at the counter of the bank. An open

cheque may be a bearer cheque or an order one.

Crossed cheque: crossing of cheque means drawing two

parallel lines on the face of the cheque with or without

additional words like “&CO” or “account payee” or “not

negotiable”. A crossed cheque cannot be encashed at the cash

counter of a bank but it can only be credited to the payee’s

acccount.

Anti-Dated cheque: if a cheque bears a date earlier

than the date on which it is presented to the bank, it is

called as “anti-dated cheque”. Such a cheque is valid upto

six months from the date of the cheque

Post-dated cheque: if a cheque bears a date which is

yet to come (future date) then it is known as post-dated

cheque. A post-dated cheque cannot be honored earlier than

the date on the cheque.

Stale cheque: if a cheque is presented for payment

after six months from the date of the cheque it is called

stale cheque. A stale cheque is not honored by the bank

3. Advantages:

Safer than cash

Better for large amounts

Cheaper than cash to operate with

4. Disadvantages:

Takes time to clear

It can “bounce”

Errors can result in bank refusing cheque

5. Solutions:

Promote the application of personal checks in

payment .

Encourage the expansion and use of personal

accounts at banks.

Apply for the loan transfer checks.

Generate more benefits for customers in the check

payment.

Propaganda and advertising.

Modernizing technology of payment via bank and

staff.

IV. DISCOUNT COMMERICAL:

1. Definition: Discount commerical is a form of

commerical banking, real out by the banks buy back the

commerical paper maturing no customers.

2. Characteristics : Operational characteristics of this

credit is the amount of interest payable immediately upon

receipt of funds. Therefore, this income will be deducted at

the time of discount.

‐ For holders of negotiable: they have money to help

meet the payment processing needs of the commercial paper

matures not become the means of circulation and means of

payment. (available funds to meet payment demands)

‐ For banks: discounts are negotiable credit

transactions secured collateral that financial assets are

highly liquid. So any more professional sports profitable

assets for the banks has created a reserve force ready to

meet the demand for payment.

3. Advantages:

For banks: this is a professional grade credit quite

safe because:

‐ Commercial paper liquidity high (short, easy

switch), so banks can actively use the commercial

paper holdings, capital accumulation was not long

‐ By law, the bank reserves the right to change all

objects available in the commercial paper plate

(recourse discounting). Therefore credit risk

because many people will thaopdi projector must

repay more responsibility.

‐ In terms of bank management, this is a form of

secondary storage while ensuring good liquidity in

childbirth at an acceptable rate (reserves a

perrty good secondary)

For Businesses:

‐ Ensure funding normal business combination:

Negotiable not need to wait for the money to

maturity beneficiaries receive cash, while the

sale is subject to sales of businesses, so it

should have quick turnaround to cover the cost of

business and operating normally. When businesses

need capital but has not negotiable maturity,

enterprises can ask the bank to discount

negotiable money into production use .

‐ Discounted commercial professional help increase

trade credit relations between enterprises : for

now with discounted commercial operations of banks

willing to sell businesses may be more due to cash

discount received before maturing commercial paper

sheets when need money, not keep it forever

negotiable.

‐ Discounted commercial operations to help increase

access to bank loans for small businesses : Is

this due to discounting commercial banks, the new

payment is negotiable mainly the banks object of

interest when granting credit, even though the

creditor or beneficiary is the one who brought to

discount commercial bills. So if people are paying

big company, operating efficiency will be easier

discounting bank acceptance

For the economy:

‐ Granted credit by discounting commercial paper is

a form of credit security level for the economy

because when granting credit by discounting

commercial principles will ensure every pre-paid

by the customer, the bank launched in economy also

has available a corresponding amount of goods

being circulated, thus reduce inflationary

pressure, it should be noted that the subject

goods businesses buy mostly raw materials for

production so provide credit in the form of

discounted commercial created good conditions for

production increases in developing economies

4. Disadvantages:

Two business situation created communion

accommodation paper (not negotiable arising from

sales in pay) to bring theater to please

projector, this makes the basis of a negotiable

instrument that ensures that goods are not credit

may exist, the amount of bank lending facility

emits no guarantee

Information about drawer not fully negotiable

Administrative expenses negotiable fairly high

5. Solutions:

Quickly create a legal framework for the

development of services and a favorable safety

Propaganda, popular, and commercial paper

discusses the benefits of Businesses negotiable

The state should have a reasonable nhunguu for

business incentives industry as well as credit

institutions involved in relationships negotiable

State Bank to urgently issued circulars to banks

can boldly carry out operations related to

discount commercial bills.

V. BANK CARDS:

A. Credit cards:

1. Definition:

A credit card is a payment card issued to users as a

system of payment. It allows the cardholder to pay for goods

and services based on the holder's promise to pay for them.

The issuer of the card creates a revolving account and

grants a line of credit to the consumer (or the user) from

which the user can borrow money for payment to a merchant or

as a cash advance to the user.

2. Advantages:

Buy now and pay later (the delayed payment feature

that preserves the user's cash for other spending

needs).

The temporary interest-free loan that a customer

has access to even if he or she pays in full a few

days or weeks later.

Cards are safer than cash.

Cards are accepted almost everywhere.

Cards help out in emergencies (i.e., help to

prevent a liquidity crisis).

Cards help guarantee reservations, such as when

you are traveling away from home.

Cards immediately identify you as a qualified

buyer and give you status with merchants and

friends.

Cards may protect the consumer who receives faulty

merchandise (i.e., the customer can delay payment

under the terms of many plans until a problem with

a previously charged purchase has been worked out

satisfactorily).

3. Disagvantages:

Credit cards can also be dangerous, since they are

portable, they can easily be lost. When the credit

card gets lost, it is difficult to renew it

Consumers may overuse them because they are so

"easy" to use and so readily accepted in so many

places.

Many consumers think of them as extra income, not

debt, but debt is what you take on when you use

your credit card.

Would be cost. Credit cards in general have very

high interest rates; in comparison to loans and

alternate means of financing

Hidden costs: The interest rate is not the only

cost of a credit card. A fee will be charged if

you are late making your monthly payment, or miss

it altogether

Pick the right card: Make sure that you pick the

right card otherwise you could end up paying more

than you need.

4. Solutions:

If you lose your card or wallet, report it to your

credit card company immediately.

Don't loan your credit card to anyone and only

give out your credit card information to trusted

companies or websites.

Check your statement closely at the end of each

month to make sure all charges are yours.

You can find out more about protecting your

personal information by visiting our personal

safety course.

Keep track of all your purchases.

Don't spend outside your budget.

Pay off your balance on all of your credit cards

at the end of each month.

B. Debit cards:

1. Definition:

‐ Debit cards are means of non-cash payment. Debit

card, which is an electronic card issued by a bank, can

allow customers to withdraw money from their account. Debit

cards are used for payment at the POS or withdraw money from

an ATM. Debit cards have no relationship between the bank

and the cardholder.

‐ Debit Cards: deposit account balances of

customers are used for the transactions. Customers must open

a deposit account at a bank before registration because the

bank will debit customers’accounts at the same time they

make transactions. Banks required customers to have enough

account balances.

‐ There are two kinds of debit cards: domestic debit

cards and international debit cards.

2. Advantages:

Debit cards allow customers to access to the

balance in their account through online system to

pay for goods and services at the POS or to make

transactions related to ATM accounts.

Debit cards are also safer ways to make payment

because passwords are only accessible if you enter

the correct pin codes

Opening card is simple and fast, customers only

need to have a bank account so that they can have

access to the products of the bank

3. Disadvantages:

The cardholder's spending depends only on the

balance in the account. There is no lending

process between the bank and the customer. There

is no classification of customers to receive

credit limit

4. Soluitons:

For individual customers: promoting the development of

information system infrastructure, linking banks,

improving service quality, benefits for

cardholders, ensuring security for cardholders,

marketing for new customers, linking with agent to

enhance payment function, entering new markets in

which transaction demand is really necessary.

For organization customers: banks should be active in

linking with other banks to construct new

infrastructure and to install payment system.

For state organizations : establishing formal

organizations and managing card payment

activities, building a solid legal and strict

framework for payment activities

VI. GUARANTEE

1. Definition :

‐ Bank guarantee is a written commitment by the bank

to the obligee on the performance of financial obligations

on behalf of customers, when the customers fail to comply

with its obligation to third parties, the amount of money

owing will be paid by the the banks instead of the customers

‐ In today's business, bank guarantee has always

been viewed as laissez sheet for businesses operating in the

purchase on credit. This will not only facilitate your

planning but also make your business partner trust your

company better

‐ As such, the guarantee has become kind of business

service which have many positive effects in promoting

capital transactions, business transactions not only in the

field but also in credit bid , contract performance, product

quality assurance ...

‐ Guaranty is the third person (the guarantor) is

committed to the obligee (the guarantee) will perform duties

on behalf of the obligor (the principal) if the deadline is

met, the gurantee cant perform the obligation or can not do

it in a proper manner. The parties may also agree on the

guarantor to fulfill the obligation only when the principal

does not have the ability to perform its obligations.

2. Advantages

Contribute to restrict the use of working capital

of the business.

Limit the use of cash, thereby enhancing the

security of transactions.

Reduce risk in case the buyer and seller do not

know each other.

Saves time and costs.

Improving the status, role and prestige in

business relations with partners

3. Disadvantages :

The procedures are too complicated

Mainly available in national banks

Kind of guarantee is not diverse

4. Solutions:

Make any legal activities relating to bank

gurantee become more completable

Diversify kinds of bank gurantee

VII. LOANS:

A. Personal loans:

1. Definition:

Personal Loans to customers as a form of funding for

the Bank's clients are individuals, measuring economic

relations in which specialized bank for the personal use of

a sum of money but certain conditions agreed in the contract

to serve the purpose of its customers.

2. Features a personal loan customers:

Borrowers are individuals and households

Loan size : mostly loans personal customers but

small numbers of large loans

Loan purpose : serve the needs of consumers or

small business manufacturer of individuals and

households .

Lending rate : interest rate commercial loan

interest rate higher than other loans of

commercial banks by size small loans to people

costs to high lending risks of winter weather this

loan offer very high

3. Sort by customers for personal loans:

Based on the purpose of the loan :

Loans to individual customers in order to serve

residential purposes :

Are loans serve the needs of the construction, shopping

or housing renovation of individuals and households.

Features of this loan are long time and large-scale

borrowing

Loans to individual customers in order to serve

the purpose of consumption:

Are loans to serve the needs to improve the lives

(shopping media, domestic utensils, travel, education,

entertainment..). Characterized by small-scale loans,

short term, lower risk loans for residential purposes .

Loans to individual customers in order to serve

the purpose of manufacturing business :

Are loans perform the production plans of small

business households, loans for trade, hire shop...the

term of this loan are generally longer, depending on

the scale of the security business customers, the risk

of such loans is very high and likely to moral hazard

Based on the refund method:

Loans and advances to customers paid once at

maturity:

To meet cash needs are immediate and one-time payment

when due. Bridge loan size is relatively small, the

commercial loan once for short and is used to pay for

vacation trips, buying household appliances or

automotive repair, housing.. Trade is not very big risk

.

Installment loans :

Means the loan is short-term or medium- term payment

into two or more times in a row. This method is used to

finance the production plan for business, shop rent,

purchase of assets and other loans carry fixed interest

rates.

Lending by credit card :

Credit card offers a line of credit Revolving regularly

and that customers can use whenever they need. Credit

card users can pay people to borrow or lump.

Based on the type of loan

Loans indirectly :

Is the form of bank loans through the sale enterprise

or services that are not directly with customers. The

bank will buy the debts incurred by the business has

paid for goods or services have provided for their

individual clients.

Direct Loans :

‐ Is the form of bank loans and ghost direct clients

met to conduct loan or debt collection

‐ Form of loans more flexible forms of lending

indirect direct relationship between banks and

customers will incur good handling.

Asset-backed loans include mortgage lending and

mortgage loan

‐ Mortgage lending is a form of bank loans for the

first customers on the condition that the customer must

transfer control rights to the collateral to the bank

in time commitments.

‐ Mortgage lending is a form of borrowers to

transfer whole documents certificates of ownership or

use of collateral to the Bank holds.

Loans without security properties :

Lending based on reputation or third party guarantee,

no collateral. Bank customers choose the reputed and

good ability to repay loans

4. Process lending to personal customers commercial banks

Step 1 : Receipt of an application for a personal loan

customers

Step 2 : Credit evaluation

Step 3 : Verifying the Collateral

Step 4 : Review and signing of the credit agreement

Step 5 : Disbursements and control while granting

credit

Step 6 : Try it or make a new credit decisions

5. Advantages:

The phenomenon of race interest, customers bargain

with bank interest rates before, so far has

generally decreased significantly. To 03.23.2012,

although the ceiling deposit rate fell 1 % but

total mobilization of the system has increased 1.5

% compared to the end of 2011

Regarding credit, the member organizations have

adjusted VND interest rates declining trend,

consistent with the downward trend of interest

rates

Banks have timely grasp the needs of customers to

provide products, consistent service, banking

network was expanded and improved high quality in

all aspects

Typically, the personal loan without documents,

compared with a loan or a car loan. Therefore

faster processing time .

Flexible use: personal loans are versatile, they

can be used for different types of purposes ,

ranging from travel expenses, medical expenses,

buy the latest jewelry components electronic or

even improve the car

6. Disadvantages:

The phenomenon of credit outstanding low growth

over time, according to statistics from the

Ministry of Planning and Investment, as of the end

of the month 9/2013, credit growth reached 6.8 %

nationally, only half the target set for the year

At the present time, due to rising bad debts, the

potential loss of principal and interest should

always lurking even though the bank wanted but

also very conservative lending

Lending procedures, the debt repayment plan

barriers, people typically only 2 types of

valuable assets as collateral to borrow the red

book and automobiles. To most small loans several

dozen million people still have to carry the red

book to mortgage banks

Still negative in unfair lending activities

relating to advertising of credit products can

confuse customers, selling insurance to pay for

the inappropriate objects and other surcharges and

debt collection methods are not suitable .

Some areas need priority lending as loans of

agriculture, rural areas face many difficulties

due to borrowers not eligible for bank loan review

(no production plans - business not effective with

or without sufficient collateral , the financial

situation is not transparent , the bad debt

incurred by not consuming the product ... )

Crystal real estate ever-changing cause many

difficulties for academic credit officers when

evaluating loan, beside meter material prices up

and down not to retire is one of the factors

impacting Account loan customers

Bank of the difficulties for customers attitude

delay, future principal repayment that despite

paying capabilities

7. Solutions:

There should be policies to encourage banks to

lend to the priority sector , enabling the sector

customers with access to low-interest capital,

with appropriate time

To raise the professional level of credit officers

evaluating skills as well as sales skills,

counseling, capable and persuasive ability to

shorten the evaluation time loan

Promoting marketing strategy including customer

research, market segments to provide products

consistent with customer needs

Upgrade physical facilities and network expansion

activities of banks

Build a separate regulation on loan customers

personal commercial banks to make text guide to

different types of loans personal customers

State Bank of organizing regular professional

training courses on the use of new programs under

the direction of modernizing banking system by

Worldbank funded

Organize courses of professional training ,

experience exchange workshop on personal loan

customers between credit institutions and banks

together

B. Corporate loans:

1. Definition:

That is a way bank loans to businesses investing

business. Bank loans are one of the most important sources

of capital for additional business processes of the

enterprise. The operation and development of the business is

tied to financial services by the commercial banks, which is

provide the supply of capital. Bank is a financial

institution to mobilize capital from many different sources,

so there is always capable of providing the funding short,

medium and long term to enterprises in the expansion project

or investment depth of business. Sources bank credit has

many advantages such as flexibility of period, the diversity

of forms of funding. However, it restricts the access of

business because of credit conditions and bank control of

the cost of capital (interest rate).

2. The role of banks for corporate:

As economic leverage to support the establishment

and development of the enterprise

‐ Bank credit impact regulatory capital movements as

the average profit margin promote the development

of enterprises, bank credit always redirect

investment into the business high profit margins,

limiting or not to invest in companies with low

profit margins. Thereby, the bank credit supply

relations change - demand for goods and changes in

the structure of economic sectors.

‐ In addition to capital of the business owner can

use other sources such as bank loans, trade

credits, issuing valuable papers, the

bills ...However, enterprises to mobilize capital

from financial markets is very difficult, in

addition to raising capital from non-financial

institutions require high-cost loans so banks are

the most appropriate choice for businesses. Using

this capital of corporate not only save costs, not

affect the ownership of the business, but also get

savings from tax. At the same time leveraging the

production process more efficient business.

Improving the efficiency of enterprise capital:

When using bank credit businesses must comply with the

credit agreement, guaranteed principal and interest

repaid on time and respect the terms of the contract

even if the business does not effectively. Therefore

requires businesses want bank credit must be feasible

production plan. Not only recovered enough capital that

businesses have to find ways to use capital

efficiently, increasing capital turnover, ensuring

greater margin than bank interest rates to repay and

profitable business.During the lending bank exercises

control before, during and after disbursement force

businesses to use capital purposes and effectively.

Ensure the operation of the businesses are

continually:

In the market economy always requires businesses always

need to improve technical, design items change,

technological innovation machinery to survive and

development in competition. Actually, business can't

guarantee 100% of the business needs. Bank credit has

facilitated business investment in capital

construction, equipment procurement, improve business

practices. From that contribute to creating conditions

for the development of manufacturing business

continuity.

Concentrate capital production, enhance the

competitiveness of enterprises

Competition is a crucial principle of the market

economy, to survive and stand firm requires businesses

to win in competition. so there are some limitations,

occupying advantage in competing with big businesses in

the country and abroad is a difficult problem. The

current trend of business is to increase the joint

venture, focused investment and expand production,

equipped with modern technology to increase

competitiveness. However, to have a large enough

investment capital to develop when own capital is

narrow, low ability to accumulate, it may take years to

accomplish and when that investment opportunity is no

longer available. Thus, in order to respond promptly,

companies can only seek bank credit. Only new bank

credit can help businesses accomplish their goals is to

expand production and business development.

Creating conditions for businesses to access

capital abroad.

‐ In addition to stimulating economic organizations

and individuals savings, accelerate the process of

capital accumulation and concentration currency,

bank credit also attract foreign capital as a

direct form cash loans, guarantees for businesses

buying equipment deferred or use L/C... Thus

international relations of the business has

expanded, creating favorable conditions for

business, especially in the field of import and

export.

‐ Loans are leverage to optimize business efficiency

capital. For businesses, due to limited funds

should use their own capital to production is

difficult because of limited capital and if they

used it, the cost will be high and market can't

acceptance. To be effective, the enterprise must

have an optimal capital structure, the plausible

structure is source of equity capital and loans in

order to maximize profits at the average cost.

3. Advantages:

Vietnam is a country on development momentum,

along with the fact that the WTO and integration

with the world, so the company also expanded

business operations as well as improve the quality

of operations, the hence the need to have a large

capital to meet that demand. Thus, lending

activities of the bank enterprises have developed

very quickly..

Vietnam currently has about 40 commercial banks

and 20 joint-venture banks and investment banks

have foreign capital. Together with its branch

network throughout the country, has created

favorable conditions for enterprises to borrow

capital, with many different choices and more

capital for businesses to borrow.

In 2013, the State Bank of Vietnam (SBV) has

dropped 2% operating interest rates, down 3% /

year interest rates for short-term loans to

priority sectors; decreased 1% maximum rate

applies deposits and from late June to allow the

credit institution itself fixed interest rate

period of 6 months or more.

Whereby the interest rate is reduced 2-5% / year

compared to 2012 and returned to rates of the

2005-2006 period. By the end of the year, interest

rates on existing loans were less than 13% / year,

borrowing rates for short-term the new terms only

8-9% / year. This has created better conditions

for businesses with low-interest loans, to meet

business needs.

Estimated 2013 total registered enterprises

establish new business is 76 955, an increase of

10.1% compared to 2012 with a total registered

capital of 398.7 trillion. This makes corporate

lending activities VN increasingly more vibrant,

by the increased number of companies, the Bank

will have a large amount of new customers, helping

businesses increase capital turnover and stable

operation action.

4. Disadvantages:

The conditions for businesses to access capital

very difficult: to have collateral, have proven to

be financially healthy ...These requirements are

barriers to doing business directly difficult to

access loans because businesses typically have

difficult as no large mortgage assets, or the

conditions of the procedure in certify ownership

or rights use complex property as at present, DN

can miss the opportunity to borrow capital.

In the case of enterprises with security assets,

Banks also offer very low prices compared to the

market. Typically, companies have real estate

assets are more likely to borrow, for the property

is inventory, accounts receivable, order

processing machinery, materials are often

difficult to be accepted by banks, if accepted, to

be undervalued.

The regulation of banks for disbursed are long

time and many inadequacies. Some of their

complaints: procedures borrowed time too long,

many procedures have conditions attached that have

VAT invoices, payments through bank ...With small-

scale and medium-sized operations, to disburse the

loan in a short time is really difficult for

businesses, especially in conditions of economic

recession, consumption declined and many

businesses have perfunctorily active.

Enterprises have difficulty in financial

transparency to satisfy the conditions of bank

loans. Many companies do not meet this requirement

due to the organization and operation from capital

contributed by family, friends, relatives ... so

financial records are not clear. On the other

hand, the majority of companies in the processing

industry, handicrafts ... buy raw materials

directly from farmers, paying cash, no receipts

should not be able to prove financial transparency

prescribed by your bank.

Monitoring should not be done well can lead to the

phenomenon of using improper loans.

The level of knowledge rules, capture information

in limited production business, no business

experience in market integration. On the other

hand, skilled workers and management capabilities,

the administrator of the majority of business

leaders have not been trained, only 30% had been

trained in a short time and at a low level.

Technology and engineering also manually backward.

The technical updates, new technology is not fast

and irregular.

The credit loans through the banking system is the

main channel that many businesses are focusing

operators, but some businesses have access to

capital is not entirely favorable and widespread.

For some businesses are not eligible due to legal

banking regulations. Some not enough knowledge and

expertise to deploy and use this source of capital

effectively. On the other hand, the procedure is

not clear, the lack of timeliness of agency loss

of business time should have some businesses are

not eager or are untapped source of capital.

5. Solutions:

Research loosen lending conditions. In fact, to

ensure the safety of the loan is not collateral

but rather feasibility and effectiveness of the

business plans of the enterprise. If the bank is

implementing innovative lending policies and

credit structure in the direction of the situation

based on the feasibility and effectiveness of the

project, business plan, it will overcome the

shortage of assets mortgage business and thus more

open for business loan.

Banks cooperate more closely with the

associations. This is the organization of

information on businesses, help banks shorten the

loan decision. At the same time, these

organizations can provide information on the

operation of the borrowing enterprise, enabling

enterprises to overcome the limitations of

security properties and demonstrate financial

capability.

The state should continue to reduce interest

rates, extend those entitled to interest rate

support to facilitate borrowing for businesses to

deploy medium-and long-term projects. The short-

term loans usually help companies solve immediate

problems without conditions to expand, rationalize

production to fulfill the long-term plan.

Should soon establish a credit guarantee fund for

businesses to sponsor the project viable

businesses have loans at credit institutions to

invest in business

Strengthen the monitoring process loans used to

limit negative. In addition, banks need to develop

a research process to fit specific lending to each

type of medium enterprises with criteria to ensure

the safety of bank capital, both flexible and

create favorable conditions for businesses to

access loans

VIII. ATM:

1. Definition:

‐ An ATM card (also known as a bank card, client

card, key card, or cash card) is a payment card provided by

a financial institution to its customers which enables the

customer to use anautomated teller machine (ATM) for

transactions such as: deposits, cash withdrawals, obtaining

account information, and other types of banking

transactions, often through interbank networks

‐ Automated teller machine or automatic teller

machine (also called ATM, which stands for Automated Teller

Machine or Automatic Teller Machine in English) is a device

bank transactions automatically with the client, make

the recognition form customers through ATM card (debit

card, credit card) or compatible devices, and help customers

check accounts, withdraw cash, transfer, payment for goods

and services.

2. Features:

ATM cards are useds in:

‐ ATM machine to deposit or withdraw money, check

account information, and other types of

transactions, often through the banking network.

‐ At a branch, is used to confirm the transaction

directly.

Unlike a debit card, an ATM card can only be used

for the transaction directly (not via telephone, fax or

Internet), because it requires verified by personal

identification number, also known as PIN.

In countries with no debit card (debit card)

clear, an ATM card is also known as "debit cards".

In most modern in the ATM, the customer is

identified by inserting an ATM card (ATM card) fitted

with a magnetic or smart cards fitted with electronic

circuits that contain card numbers and protect certain

information, such as an expiration date or CVC into the

machine. Protection function is provided when customers

enter personal identification number (Personal

identification number - PIN).

2. Advantages:

Stimulation of non-cash payments. ATM cards can be

used to pay bills at the point of sale services

have a POS (swipe machine), payment services

online. Everything will become easier and you do

not need to cash.

ATMs are bank-wide layout in many areas, helping

customers easily and conveniently in the

transaction.

Customers can use ATMs of the other bank for

transactions

Helping cardholders can easily manage and easily

transfer funds criticized its limited cash flow in

the market

3. Disadvantages:

Besides the great utility of ATM machines, in

fact, the use of ATM machines also cause certain

risks to health. According to a study by the ATM

contain a bacteria that can cause disease the

human equivalent of a public toilet because, on

ATMs around hundreds of users per day. In

addition, there are also cases of ATM electric

leak, causing the fatal accident

ATMs of banks in Vietnam have not really

operational stability leads to error transactions,

customers lose money, custody of money, the card

is swallowed, ... Also many comments complaining

(even the event Procedure) for the money in the

account is lost, confused, omissions, malfunctions

... when using ATM machines

Most banks only give customers maximum withdrawal

amount from 2 to 5 million each drawing, so if you

need to withdraw large amounts of money several

times.

The use of non-bank ATMs will often lose its

charge if banks are not linked together, there are

not enough cases of ATM cash transactions for

customers

Customers may worry the stolen personal

information

4. Solutions:

Banks should regularly perform the maintenance,

repair, cleaning the ATM system to detect

incidents technique, giving the best service to

customers

Rapid problem solving technical problems when

customers complain, network application of modern

techniques of trouble swallowing charge card, cash

prison,....to customers

Regularly check the balance of cash in ATMs so

that customers can always perform transactions,

banks should have extensive affiliate network with

other banks to facilitate customer transactions

than in lost fees

Bank of the application of advanced protection

systems to prevent customer information from being

stolen

Customers also need to be proactive in protecting

personal information, PIN change often, only the

cardholder knows the PIN code to use.

IX. FOREGIN CURRENCY TRADING:

1. Definition:

Is speculation about the price of one currency

versus other currencies. It includes transactions :

‐ Spot transactions

‐ Forward transactions

‐ Options trading

‐ Future transactions

‐ Swaps

‐ Foreign Exchange Swap (Forex Swap)

‐ Interest rate swaps (IRS)

2. Advantages:

Minimal or no commissions - There are no clearing fees,

no exchange fees, no government fees and no

brokerage fees. 

Easy access – if you compare the money you need on

the market in comparison with the amount needed

for entering the stock, options or futures market,

it’s a huge difference. The amount of capital is

very low and it allows numerous types of people to

easily enter the foreign exchange market. 

No middlemen – spot currency trading is

decentralized and eliminates middlemen, allowing

you to trade directly. 

Lots of free courses and demo possibilities – On the internet

you can find huge opportunities for learning how

the Forex market works and what you need to become

a good trader. Also, most online Forex brokers

offer demo accounts to practice trading and build

your skills, using real-time charts and news

feeds. They are more valuable than you could even

imagine and, before starting your real money on

the market, try to see if you are built and ready

for it by practicing with these types of

software. 

Time and location flexibility – the market is open 24 hours

each day, so you don’t have to match your schedule

with the one of the market. It doesn’t require a

full-time engagement and you can choose the hours

that suit your best. Also, you can operate from

any corner of the world, as long as you have an

Internet connection. 

Low transaction costs – the transaction cost,

determined by the bid/ask spread, is usually less

than 0.1%, and it can go even lower in the case of

large dealers. 

A high liquidity market – the market is huge, so is

extremely liquid. Around 4 trillion dollars are

exchanged every day, according to the latest

figures released by the Bank of International

Settlements (BIS). That becomes an advantage, as

you don’t have to struggle so much until you will

find someone who wants to buy your currency or

sell you one. You can’t get stuck and, by using

features like stop lose, you will close your

position automatically, while not even being in

front of the computer. 

Leverage – with a little investment you can move

large amounts of money. Leverage gives the trader

the ability to make nice profits and keep risk

capital to a minimum. 

No forced deadlines – no one and no rule is forcing you

to close a position. You can stay open as long as

you consider necessary. 

No fixed lot size requirements – your contract size it’s

your decision and you are the only one who

determines your own lot. 

Transparency - due to multi-day market movement, its

size and the high number of participants, it is

virtually impossible to market manipulation. 

3. Disadvantages:

Differences between retail and wholesale pricing –

around two-thirds of the trades are made between

dealers and large organizations such as hedge

funds and banks. They trade at wholesale prices,

while the investor trades at a retail price. Like

this it can become a challenge to compete against

bigger organization that start with a lower entry

point and sell more profitably.

Risk of choosing an inexperienced broker – you can

find on the internet many people who are targeting

fraud so be careful when choosing the broker. 

Where there is a winner, there is also a looser –

don’t expect necessarily to win lots of money.

Remember that for someone to get rich, another has

to lose money on the Forex market. 

Requires knowledge and time – Without completely

knowing the market’s rules and without having

patience, your investment might very well soon

vanish

4. Solutions:

Firstly, enterprise permission to foreign currency

bond issue to mobilize floating exchange in

economy and foreign currency is considered

possession excess.

Secondly, create definitive trade mechanism in

place of foreign currency credit to enhance the

autonomy of enterprises, banks and markets in

foreign relations.

X. E-BANKING:

1. Definition:

Electronic banking, also known as electronic funds

transfer (EFT), is simply the use of electronic means to

transfer funds directly from one account to another, rather

than by check or cash

You can use electronic funds transfer to:

Have your paycheck deposited directly into your

bank or credit union checking account.

Withdraw money from your checking account from an

ATM machine with a personal identification number

(PIN), at your convenience, day or night.

Instruct your bank or credit union to

automatically pay certain monthly bills from your

account, such as your auto loan or your mortgage

payment.

Have the bank or credit union transfer funds each

month from your checking account to your mutual

fund account.

Have your government social security benefits

check or your tax refund deposited directly into

your checking account.

Buy groceries, gasoline and other purchases at the

point-of-sale, using a check card rather than

cash, credit or a personal check.

Use a smart card with a prepaid amount of money

embedded in it for use instead of cash at a pay

phone, expressway road toll, or on college

campuses at the library's photocopy machine or

bookstores.

Use your computer and personal finance software to

coordinate your total personal financial

management process, integrating data and

activities related to your income, spending,

saving, investing, recordkeeping, bill-paying and

taxes, along with basic financial analysis and

decision making.

2. Advantages:

Perform simple job transfers

Check account balances and transactions in

anywhere

Watch the periodic account statements at any time

Make payments online safely

Online Shopping

Limit the risk when the person bringing cash

Promote the development of e-commerce

3. Disadvatages:

The quality of electronic banking services have

not yet satisfied clients in the higher level

Infrastructure is poor quality network, connection

speed, technical errors

Electronic banking transactions depend heavily on

evidence from traditional storage, electronic

goods can not all transaction documents

New risks as hackers , computer viruses can have

an enormous impact, loss of customer confidence

Scale and quality of e-commerce is still very low

and slow development

4. Solutions:

Improving the quality of service

Promote the link between the commercial banks in

Vietnam with

together and linked to the production technology

Development of infrastructure and modern

technology investments

Building acquisition systems, feedback and

complaints handling customers better.