Liquidity management : case study of Bank for Foreign Trade of Vietnam (VIETCOMBANK) | |
| Author | Mai Kim Nga |
| Call Number | AIT RSPR no.SM-04-84 |
| Subject(s) | Liquidity (Economics) Bank liquidity|zVietnam |
| Note | A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-04-84 |
| Abstract | Liquidity plays a very important role in banking activities. Commercial bank's activities depend directly or indirectly on the bank's ability to provide the liquidity to its customers. The aim of this paper is to introduce definitions and methods of liquidity management in banks and provide the readers a whole picture of liquidity management through the analysis in one of the largest state owned bank of Vietnam - Bank for Foreign Trade of Vietnam (Vietcombank) As one of the four largest state owned commercial banks in Vietnam both in terms of assets and market shares, Vietcombank is well known by its role and dominance in trade finance and foreign exchange market in Vietnam. During the past years, Vietcombank is considered as the bank that takes the lead in the process of reforming and renovating the management structure of banking system in Vietnam. However, Vietcombank still has a lot of shortfalls between management procedures and international practice, especially in liquidity management. The reason why the liquidity management activity in Vietcombank is still very weak comes from five sources: lack of a comprehensive and integrated framework on liquidity management; lack of modem information technology system; lack of strict guidelines and regulations on some bank's activities; lack of professional staff; and lastly, have a great support from the State bank of Vietnam. Although in recent years, thanks to some advantageous factors such as: the deposits from customers increase year by year; the sensitivity of interest rate is low in domestic market and the strong support from the State Bank of Vietnam, the liquidity position of Vietcombank is still stable; but no one can be sure that Vietcombank will hold these advantages forever. Especially, the process of global and regional integration and the development trend of banking industry in Vietnam will force the change of business environment for the implementation of Vietcombank liquidity policy. The research also proposes some solutions that might be useful for the process of improving the liquidity management in Vietcombank. |
| Year | 2004 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-04-84 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Tang, John C.S; |
| Examination Committee(s) | Swierczek, Fredric W. ;Sunuta Seingthai ; |
| Scholarship Donor(s) | Government of France ;AIT Fellowship ; |
| Degree | Research Studies Project Report (M. BA.) - Asian Institute of Technology, 2004 |