Tài liệu Enhancing residential capital mobilization at joint stock commercial bank for investment and development of vietnam transaction office 1

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --------------------- ĐỖ NGỌC DŨNG ENHANCING RESIDENTIAL CAPITAL MOBILIZATION AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM - TRANSACTION OFFICE 1 TĂNG CƯỜNG HUY ĐỘNG VỐN DÂN CƯ TẠI NGÂN HÀNG TMCP ĐẦU TƯ VÀ PHÁT TRIỂN VIỆT NAM - CHI NHÁNH SỞ GIAO DỊCH 1 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2018 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --------------------- ĐỖ NGỌC DŨNG ENHANCING RESIDENTIAL CAPITAL MOBILIZATION AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM - TRANSACTION OFFICE 1 TĂNG CƯỜNG HUY ĐỘNG VỐN DÂN CƯ TẠI NGÂN HÀNG TMCP ĐẦU TƯ VÀ PHÁT TRIỂN VIỆT NAM - CHI NHÁNH SỞ GIAO DỊCH 1 Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: TS. PHẠM THỊ THANH HÒA Hà Nội - 2018 DECLARATION The author confirms that the research outcome in the thesis is the result of author’s independent work during study and research period and it is not yet published in other’s research and article. The other’s research result and documentation (extraction, table, figure, formula,and other document) used in the thesis are cited properly and the permission (if required) is given. The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business and Management, and the laws for above-mentioned declaration. ACKNOWLEDGEMENT I would like to express my deep gratitude to the teachers of the Hanoi school of Business and Management, Vietnam National University, especially the teachers who imparted to me a lot of knowledge and helped me. Carry out this essay. I would like to express sincere gratitude to Dr. Pham Thi Thanh Hoa has spent a lot of time, dedicated guidance, only told me during the course of the topic. I sincerely thank family, friends and colleagues for encouraging and supporting me in the process of study and research. TABLE OF CONTENTS TABLE OF CONTENTS ..................................................................................................... i LIST OF TABLES .............................................................................................................. iv INTRODUCTION................................................................................................................ 1 1. Rationale ................................................................................................................. 1 2. Research overview .................................................................................................. 2 3. Research objectives ................................................................................................. 4 3.1 Overall objective ................................................................................................... 4 3.2 Specific objectives ................................................................................................ 5 4. Research questions .................................................................................................. 5 5. Research object and research scope ........................................................................ 5 6. Research methods.................................................................................................... 5 7. Organization of the thesis........................................................................................ 6 CHAPTER 1: THEORETICAL FaRAMEWORK ON ENHANCING RESIDENTIAL CAPITAL MOBILIZATION AT COMMERCIAL BANKS .......................................... 7 1.1 Overview of residential capital mobilization activities of commercial banks ...... 7 1.1.1 Basic concepts .................................................................................................... 7 1.1.2 Forms of mobilizing residential capital of commercial banks ........................... 8 1.1.3 Characteristics of residential capital .................................................................. 9 1.1.4 Role of residential capital................................................................................. 10 1.2 Enhancing residential capital mobilization at commercial banks ....................... 11 1.2.1 Concept ............................................................................................................ 11 1.2.2 Contents of enhancing residential capital mobilization at commercial banks . 11 1.2.3 Factors affecting residential capital mobilization at commercial banks .......... 16 1.2.4 Criteria for assessing the effectiveness of residential capital mobilization at commercial banks ...................................................................................................... 20 i 1.2.5 Experience in enhancing residential capital mobilization at commercial banks and lessons for BIDV – So GiaoSo Giao Dich 1 Dich 1 Branch .............................. 23 CHAPTER 2: REALITY OF ENHANCING RESIDENTIAL CAPITAL MOBILIZATION AT BIDV - SO GIAO DICH 1 .......................................................... 26 2.1 Introduction of BIDV - So Giao Dich 1 .............................................................. 26 2.1.1 History of foundation and development........................................................... 26 2.1.2 Functions and tasks .......................................................................................... 28 2.1.3 Organizational structure ................................................................................... 29 2.1.4 Business results ................................................................................................ 31 2.2 Reality of enhancing residential capital mobilization at BIDV - So Giao Dich 134 2.2.1 Establishing targets for residential capital mobilization .................................. 34 2.2.2 Building policies to enhance residential capital mobilization ......................... 35 2.2.3 Conducting activities to enhance residential capital mobilization ................... 39 2.2.4 Evaluating the efficiency of residential capital mobilization activities ........... 46 2.3 Evaluation of factors affecting residential capital mobilization at BIDV - So Giao Dich 1 ............................................................................................................... 50 2.3.1 Subjective factors ............................................................................................. 50 2.3.2 Objective factors .............................................................................................. 55 2.4 General evaluation .............................................................................................. 57 2.4.1 Achievements ................................................................................................... 57 2.4.2 Limitations and causes ..................................................................................... 58 CHAPTER 3: SOLUTIONS TO ENHANCE RESIDENTIAL CAPITAL MOBILIZATION AT BIDV - SO GIAO DICH 1 .......................................................... 61 3.1 Development orientations and objectives of BIDV - So Giao Dich 1 ................ 61 3.1.1 General development orientations ................................................................... 61 3.1.2 Development orientation for enhancing residential capital mobilization ........ 61 3.2 Solutions to enhance residential capital mobilization at BIDV - So Giao Dich 163 3.2.1 Continue to promote marketing and searching for customers ......................... 63 ii 3.2.2 Enhance training to improve the quality of the bank’s staff ............................ 64 3.2.3 Innovate and change banking technology ........................................................ 65 3.2.4 Increase propaganda to change people’s habit of keeping money at home ..... 66 3.2.5 Expand the network of transaction offices ....................................................... 66 3.3 Recommendations ............................................................................................... 67 3.3.1 Recommendations to the State ......................................................................... 67 3.3.2 Recommendations to the State Bank ............................................................... 68 3.3.3 Recommendations to BIDV ............................................................................. 68 CONCLUSION .................................................................................................................. 70 REFERENCES ................................................................................................................... 71 iii LIST OF TABLES Table 2.1: Business results of BIDV - So Giao Dich 1.................................................... 32 Table 2.2: Targets for residential capital mobilization of BIDV - So Giao Dich 1 ....... 34 Table 2.3: Individual customer policy of BIDV ............................................................... 35 Table 2.4: Diversification and innovation of residential capital mobilization products at BIDV – So Giao Dich 1 ..................................................................................................... 37 Table 2.5: Interest rates for capital mobilization of BIDV compared to other commercial banks in Hanoi on 31 December, 2016 ........................................................ 39 Table 2.6: Expenses for the propaganda and promotion of residential capital mobilization products ......................................................................................................... 41 Table 2.7: Promotion activities for residential customers using residential capital mobilization products ......................................................................................................... 42 Table 2.8: Amounts of promotion gifts in the program "Golden Gift of October" at BIDV – So Giao Dich 1 ..................................................................................................... 44 Table 2.9: Contents of the training of residential capital mobilization staff................... 45 Table 2.10: Structure of residential capital mobilization at BIDV – So Giao Dich 1 .... 46 Table 2.11: Structure of types of residential capital at BIDV – So Giao Dich 1............ 47 Table 2.12: Market share of residential capital mobilization of some commercial banks in Hanoi ............................................................................................................................... 48 Table 2.13: Expenses for residential capital mobilization at BIDV – So Giao Dich 1 .. 50 Table 2.14: Marketing activities to enhance residential capital mobilization at BIDV – So Giao Dich 1.................................................................................................................... 51 Table 2.15: Reality of human resources in capital mobilization at BIDV – So Giao Dich 1 .................................................................................................................................. 53 iv INTRODUCTION 1. Rationale The process of economic integration in the region and the world is taking place very excitingly. When the TPP agreement comes into effect in 2018, Vietnam will have more opportunities to approach world markets and developed economies. This also means that the competition will be fiercer in the whole economy. At the same time, our country is in the period of dramatic economic changes - the period of accelerating industrialization and modernization of the country - helping the country through underdevelopment and improving the quality of life. In order to successfully execute that strategy, the demand for capitals is very huge and urgent. Therefore, current banks are constantly improving their service quality, expanding their operation network, and modernizing their systems in order to attract more capitals. In which, the capital mobilized from residents is being paid special attention by commercial banks since the potential capital in the population is great but not yet exploited and people have not been aware of the profitability of deposits in banks, together with many other objective reasons. As one of the largest commercial banks in Vietnam, Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) in general and So Giao Dich 1 in particular are actively implementing many measures to mobilize the maximum capital from residents in order to finance the projects of socio-economic investment and development, serving effectively for the industrialization and modernization of the country. Accordingly, the branch has carried out many advertising activities such as advertising on radio channels, social networks, hanging posters and banners, etc. Some promotional programs deployed branches by the bank such as "Getting Gold with BIDV", "Double Lucks – Multiple Happiness", "Soon Deposit - Big Presents" have been enthusiastically supported by customers in the area. However, due to the general difficulties of the economy and the fierce competition among banks in the area, the mobilization of capitals from 1 residents has somehow grown but there has been no breakthrough in terms of size and capital quality. In addition to the achievements, the capital mobilization activities of the branch also faced some difficulties such asthelow income level of people in the area, the little accumulation of money in the population, the fierce competition among other credit institutions in the area, leading to the low efficiency of the branch’s capital mobilization. Based on the above reality, in order to help the Board of Directors of Vietnam Joint Stock Commercial Bank for Investment and Development clearly understand the successes as well as the shortcomings in the mobilization of residential capital at the branch in the past few years and have a basis for carrying out the residential capital mobilization, the author selected the topic "Enhancing residential capital mobilization at Joint Stock Commercial Bank for Investment and Development of Vietnam–So Giao dich 1 Branch" as his thesis topic. 2. Research overview A bank is an organization that plays an important role in the economy. Traditional banking services includelending, foreign exchange trading, trade financing, providing transaction accounts, and so on. With the traditional model, offering loans is considered a highly profitable activity, so banks have proposed many solutions to mobilize the sources of loan capital. In addition to the capital from foreign credit institutions, one of the important sources of capital is the capital mobilized from residents in domestic market. However, how to mobilize residential capitals effectively is the question that banks need to consider so that they can find out solutions to expand and enhance the efficiency of residential capital mobilization. Therefore, this topic has been concerned by many scholars and managers. A scientific research was conducted by Dinh Thuy Kim Hoang (2011) entitled "Solutions to enhance mobilization of savings deposits at Eximbank - Dong Nai Branch". In the study, the author administered survey questionnaires to 100 customers in Dong Nai Province and then used SPSS software to process the data. With a combination of many research methods including statistics, investigation, comparison, 2 analysis, synthesis, and so on, Dinh Thuy Kim Hoang triggered the reality of capital mobilization in the form of savings deposits at Eximbank and proposed feasible solutions to expand and enhance the efficiency of capital mobilization at Eximbank. The study was carried out in the period of time when the economy was facing high inflation, so the research results made important contributionin helping the management of Eximbank deploy solutions to promote the efficiency of residential capital mobilization. However, due to the small sample size and the large scope of the research, the results of the survey were not representative. Nguyen Ngoc Phuong (2008) carried out a study on "Some solutions to enhance residential capital mobilization at Vietcombank - Ba Dinh branch". With a combination of various methods such as dialectical materialism methods, statistics, comparison, etc., the author systematized and clarified the basis of the theoretical framework on capital mobilization and confirmed the role of capital mobilization in business operations of the bank. At the same time, the reality of mobilizing capitals at Vietcombank - Ba Dinh branch (mainly in VND) was also evaluated. From that, the research provided solutions and recommendations to improve the efficiency of capital mobilization at the branch. The research was of high practical value; however, the contents of the research mainly focused on capital mobilization but did not present the contents as well as the factors affecting the mobilization of residential capitals of Vietcombank. Another research conducted by Nguyen Hoa Nhan (2013) was about "Extending residential capital mobilization at BIDV - Nam Ha Noi Branch". The study synthesized basic theoretical issues on capitals, especially the mobilization of residential capitals of commercial banks. Based on the criteria reflecting the enhancement of residential capital mobilization, the author conducted an analysis and assessment of the reality of residential capital mobilization at BIDV – Nam Ha Noi Branch and looked for solutions to expand the residential capital mobilization at BIDV – Nam Ha Noi branch. The study made feasible recommendations that were in line with the business situation of the branch, helping the branch promote the efficiency of capital mobilization, especially from residents. However, the study 3 had not mentioned the factors affecting the expansion and increase of residential capital mobilization of commercial banks in general, and of BIDV – Nam Ha Noi Branch in particular. Omankhalen (2015) conducted a study entitled "The Role of Banks in Capital Formation and Economic Growth: The Case of Nigeria." In this study, the author mainly examined the relationship between bank mobilization and internal economic growth in Nigeria. At the same time, the author also analyzed the reality of capital mobilization at commercial banks in Nigeria and proposed solutions to improve the efficiency of this work. The study supplemented the literature demonstrating the positive relationship between bank capital mobilization and economic growth. However, the study just generally mentioned capital mobilization without further analyzing and evaluating the sources of capitals mobilized from residents. The research of Chris Humephery Rumenda, Joash Simiyu Wakoli, and Winnie Wanjiru Nyantika (2012) was about the "Factors influencing savings mobilization by commercial banks: A case study of commercial banks in Nakuru". The study focused on assessing the mobilization of savings from residents of commercial banks in Nakuru, and particularly studied the factors affecting the mobilization of savings deposits at the banks. By testing the impact of each factor, the author made suggestions and recommendations to help commercial banks in Nakuru improve the efficiency of mobilizing savings deposits from residential areas. It can be realized that each of the studies above had a particular approach that suited the research objectives of each topic, but there had been no comprehensive research on the enhancement of capitalmobilization from residential areas. Therefore, in order to complete and fill the gap of previous studies, the author carried out the topic of enhancing residential capital mobilization at commercial banks and selected BIDV - So Giao Dich 1 as a case study. 3. Research objectives 3.1 Overall objective The research aims at studying and evaluating the strengths and weaknesses of the mobilization of residential capital in the last period, from which 4 proposingmeasures to increase residential capital mobilization at BIDV – So Giao Dich 1in the coming time. 3.2 Specific objectives - Systematizing and synthesizing the theoretical framework on enhancing residential capital mobilization at commercial banks. - Analyzing the reality of enhancing residential capital mobilization at BIDV - So Giao Dich 1. - Proposing solutions to enhance residential capital mobilization at BIDV So Giao Dich 1. 4. Research questions What is the reality of enhancing residential capital mobilization at BIDV - So Giao Dich 1? What are the solutions to enhance residential capital mobilization at BIDV So Giao Dich 1? 5. Research object and research scope Research object The object of the study was the enhancement of residential capital mobilization at BIDV - So Giao Dich 1 and solutions for implementation in the current stage. Research scope - In terms of space: The study was conducted at BIDV - So Giao Dich 1. - In terms of time: The research data were collected in the stage of 20142016 at BIDV – So Giao Dich 1. 6. Research methods Research using the following methods: + Comprehensive Analytical Methods: Based on the collected data and materials, the author will conduct analytical and critical review and selection of critical material and will undertake thesis analysis. The author used this method to analyze the efficiency of business results, Targets for residential capital mobilization of BIDV - So Giao Dich 1, Interest rates for capital mobilization of BIDV compared to other 5 commercial banks in Hanoi on 31 December, 2016; Expenses for the propaganda and promotion of residential capital mobilization products,… + Comparative method: The comparison method is used to compare change of indicators reflecting the efficiency of enhancing residential capital mobilization at BIDV – So Giao Dich 1 branch 7. Organization of the thesis The thesis consists of the following three main chapters: Chapter 1: Theoretical framework on enhancing residential capital mobilization at commercial banks. Chapter 2: Reality of enhancing residential capital mobilization at BIDV - So Giao Dich 1. Chapter 3: Solutions to enhance residential capital mobilization at BIDV - So Giao Dich 1. 6 CHAPTER 1: THEORETICAL FRAMEWORK ON ENHANCING RESIDENTIAL CAPITAL MOBILIZATION AT COMMERCIAL BANKS 1.1 Overview of residential capital mobilization activities of commercial banks 1.1.1 Basic concepts Commercial bank Commercial banks have existed and developed for hundreds of years associated with the development of the commodity economy. The development of the commercial bank system has had a great impact on the development of the commodity economy. In the market economy, commercial banks have been improved and become indispensable financial institutions. Despite the long history of development, the introduction of a specific concept of commercial banks remains controversial for economists. There are different concepts at different times: According to the world economists,a commercial bank is a type of business operating and trading in the monetary and credit sectors.A commercial bank is a type of financial institution which provides the most diversified portfolio of financial services, especially savings, payment services and performs more financial functions than any other organizations in the economy. According to the Law on Credit Institutions in Vietnam, "A commercial bank is a credit institution which is entitled to carry out all monetary operations, perform banking functions and other related activities", in which "Banking activities include monetary trading and banking services with regular contents of receiving deposits, using deposits to offer credit and provide payment services" (Law on Credit Institutions, 2010). Thus, commercial banks are one of the financial institutions specializing in providing a variety of financial services with the basic operations of receiving deposits, lending and providing payment services. In addition, commercial banks also provide other services to satisfy the maximum demand for products and services of the society. Capital mobilization 7 Capital mobilization is an activity that creates capital for commercial banks, which plays an important role and affects the quality of banking operations. This activity provides banks with capital to carry out other activities such as granting credit and providing banking services to customers. The capital mobilization activities of the banks are reflected in the debit assets. According to the Law on Credit Institutions (2010) in Vietnam, commercial banks are allowed to mobilize capital in the following forms: - Receiving deposits from organizations, individuals and other credit institutions in the forms of demand deposits, time deposits and other types of deposits. - Issuing certificates of deposit, bonds and other valuable papers to mobilize capital of domestic and foreign organizations and individuals when permitted by the Governor of the State Bank. - Borrowing capital from other credit institutions operating in Vietnam and foreign credit institutions. - Borrowing short-term capital from the State Bank in accordance with the Law of the State Bank of Vietnam. Residential capital mobilization Residential capital mobilization (i.e. mobilizing deposits from residents) is the activity that banks implement to mobilize capital from residents, agents with payment accounts, time deposits or valuable papers issued by the banks (Nguyen Van Tan, 2016). According to Che Thi Thanh Nguyet (2012), the activity of mobilizing residential capital of commercial banks is one of the major and important activities of commercial banks. This activity generates capital for commercial banks in various forms such as receiving demand deposits, time deposits and issuing debt recovery instruments to attract idle funds from all classes of population. 1.1.2 Forms of mobilizing residential capital of commercial banks Commercial banks can mobilize residential capital from in the following forms: 8 - Opening payment accounts for individuals: Payment deposits includepayment deposits with interest and payment deposits without interest. This is the most volatile capital and it is difficult to predict the size of deposits. The interest paid to this account balance is the lowest, so the cost of capital mobilization is very low. - Mobilizing time deposits fromresidents: This type of deposit is an agreement between the bank and the customer about the time of depositing and is a source of intermediate deposit between payment deposit and savings deposit. Time deposits usually have long maturities and high interest rates, so they are relatively stable. - Mobilizing savings deposits from residents: Savings deposits are created to attract the capital of those who wish to put aside some money for specific goalsor financial needs in the future. The interest rates applied for this type of deposit are much lower than for demand savings deposits. - Mobilizing by issuing valuable papers: This is the form of mobilization in which banks mobilizing monetary capital by issuing valuable certificates, including certificates of deposit, promissory notes and bonds. Certificates of deposit are shortterm debt notes with specified par value.Bonds are medium and long-term debtnotes. Promissory notes are short-term valuable papers (in one year). They have the same characteristics as bonds but have a shorter term than bonds, so they are used for the purpose of short-term capital mobilization of banks. These types of debt notes are issued by banks on a case-by-case basis. 1.1.3 Characteristics of residential capital + Residential capital often hasshort terms. Residential capital include residents' payment deposits,which are consumption or business payments and are usually transferred from one account to another, from a bank to another bank or withdrawn for the purpose of spending. As a result, this type money stays in the customers' accounts in a very short time. + Residential capital is more stable than capital mobilized from economic organizations. Due to the large number of individual customers and the smaller amounts of deposits than those of organizations, the fact that an individual customer 9 withdrawsmoneyhas less impacton the total mobilized capital thanthe fact that a corporate customer withdraws money. In addition, residents usually put their money into commercial banks for savings (time deposits). With this form, customers will agree with the banks on terms and interest rates. In necessary cases, customers can still withdraw money before maturity.However, the majority of customers can determine their deposit terms and only withdraw their money at maturity or continue to keep their money in the banks. Therefore, the residential capital has high stability. Based on this characteristic, commercial banks can use the residential capital for medium and long-term loans. This is an advantage of the residential capital. + The expenses for residential capital mobilization are high. Due to the stability and the profitability purpose of customers, the expensesfor mobilizing residential capital are normally high. Theseexpenses include interest expenses and non-interest expenses. Interest expensesare the interest payablesto types of deposits in accordance with the deposit interest rates agreed by the banks and the customers. Non-interest expenses are diversified, including expenses directly paid to depositors such as gifts, insurance, expenses for paying salaries tothe bank staff, and expenses for increasing utilities for depositors such as opening more branches, transaction offices, and so on. 1.1.4 Role of residential capital The development of residential capital mobilization brings benefits not only to commercial banks but also to the society and residential customers: For the society:The mobilization of residential capital of commercial banks is used to supplement capital for the economy and raise the living standard of people instead of using the capital for other expenditures. Thanks to the savings, people have increased their production and business activities, created more jobs for laborers and raised their living standard through the indirect benefits of the savings capital. The larger the residential capital is, the more benefits it brings to the society. This capital will benefit both the banks and the people, and the State will reduce an investment in the economy. In addition, the mobilization of residential 10 capital will contribute to developing personal payment deposits, boosting non-cash payment and saving the costs for issuing and circulating cash in the economy. For residential customers: Customers who participate in the activity of capital mobilization of commercial banks will have income from the amount of money they deposit into the bank. Using capital mobilization products of the banks, customers are guaranteed capital security, enjoy interest and, most importantly, can use fast and convenient payment services. For banks:Residential capital is important to the banks and is the major object that the banks aim at to maintain in the long-term and sustainable development. Mobilization of residential capital is not only of great social significance, but also of great significance for the banks themselves. The more residential capital is mobilized, the stronger the banks’ financial capacity is. Residents are not only the objectsfor capital mobilization of commercial banks but also their customers. When there is idle money, a number of people will deposit it into banks. Meanwhile,otherswho have the opportunity to do business but do not have capital will come to banks to apply for loans. Thus, the mobilization of residential capital of commercial banks benefit both people and the banks themselves, contributing to raising the efficiency of capital use for the society. 1.2 Enhancing residential capital mobilization at commercial banks 1.2.1 Concept Enhancing residential capital mobilization at commercial banks refers to the activities carried out by commercial banks to increase the volume of deposits from residential customers,expand the size of mobilized capital with suitable deposit structure and reasonable mobilization expenses to meet the banks' demand for capital, increase the market share of residential capital mobilization andenhance the quality of capital mobilization service. 1.2.2 Contents of enhancing residential capital mobilization at commercial banks 1.2.2.1 Establishing targets for residential capital mobilization + Looking for cheap sources of capital Interest expense is considered the largest expense of a bank in the mobilization of residential capital. In which, the largestexpenseis for paying 11 interests for time deposits. Normally, there are three ways of paying interests for residential capital including: interests paid in advance, interests paid at maturity and interests paid periodically. Of the types of residential capital, payment deposits are the one with the least costssince banks must provide some utility services for this kind of mobilized capital, and they can be sent and withdrawn at any time. Therefore, this is the source of residential capital that commercial banks need to increase. + Creating stable sources of capital and appropriate structure The structure of residential capital should be diversified by maintaining a ratio between short-term and long-term deposits, between local currency and foreign currency. A bank with high quality of residential capital will have abundant sources of capital and a balanced capital structure, which help the banks avoid financial stress in the changing business environment. The change in the structure of residential capital depends partly on banks' adjustment plans and external factors which require the banks to regularly research and approach the market to determine the suitable structure of residential capital for their banking activities. + Developing stable sources of capital. A bank which wants to expand its operations needs a large volume of capital, in which residential capital is an important part. The volume of residential capital must reach a certain scale according to the mobilization plan of the bank. In order to properly implement this issue, it is necessary to harmonize other factors such as interest rates, marketing policies, forms of capital mobilization and prestige of banks. 1.2.2.2Developing policies to enhance residential capital mobilization The policy of mobilizing residential capital of commercial banks is one of the decisive factors for the success of the enhancement of residential capital mobilization. In each period, the demand for capital of a bank is different. The policy to enhancethe mobilization of residential capital includes the following contents: - Customer policy 12