I declare that this record entitled “INCREASING CAPITAL MOBILIZATION IN INVESTMENT BANK &. This research first identifies and analyzes the factors influencing the increase of capital mobilization especially in BIDV.
INTRODUCTION
Research Background
The decrease in loan assets not only reduces the performance of BIDV bank, but also affects resources for investment in infrastructure development, business development, indirectly stagnates the development of the economy, when the market share for loans to large projects, long-term in the economy is still largely carried out by state-owned commercial banks (SOCB), including BIDV bank. 3 Therefore, by studying the development activities of the BIDV subsidiary's capital collection in transition and understanding the factors that influence and take into account competitive factors in this work, the researcher proposed some solutions for the development of the financing of BIDV's development activities.
Statement of Problem
Research Objective
Research Limitation
Definition of Term
Interest rate: This is the amount charged, expressed as a percentage of the principal, by a lender to a borrower for the use of assets. With the motto "Efficiency in business and safety in operation", the expansion of network has closely connected with the improvement of capital mobilization and the development of banking in general. According to Tran Hoai Nam (2006) with "The solution for enhancement capital mobilization in BIDV Hanoi"; there were many factors that could influence the improvement of capital mobilization.
Assume that all four factors are categorized as dependent variables X1, X2, X3, X4 and the independent variable as Y, which is shown in Figure 2.3 - the context framework of this study. These factors complemented each other and created the research: "The enhancement of capital mobilization in BIDV". But for the characteristic of customers (such as age, gender, education, etc.), the researchers cannot control it.
Compared to other competitors, BIDV's interest rate is more attractive to customers, so it is the best choice of customers. Xuan Zhang & Yuanyuan Feng (2009), “The Impact of Customer Relationship Marketing Tactics on Customer Loyalty”, p.
Significance of the Study
Benefits of the Study
14 Mobilization of capital is one of the most important activities and the most important of commercial banks. In this research, the distribution network is one of the factors that influence the improvement of capital mobilization. Based on the result of the analyzed data in the Figure 4.2.3.1 on Appendix 3, it can be explained that the majority of responses for marketing items are from neutral to agreement level.
Based on the result of the data analyzed in Figure 4.2.3.2 in Appendix 3, it can be explained that most of the responses for the interest rate items are from neutral to agree. Based on the result of the data analyzed in Figure 4.2.3.3 in Appendix 3, it can be explained that most of the responses for the distribution network items are from the neutral to the agreed level. 56 Based on the result of the data analyzed in Figure 4.2.3.4 in Appendix 3, it can be explained that most of the responses to the safety items are from the neutral to the agreed level.
A partial regression plot allows isolating the role of a specific independent variable in multiple regression models. From the results of the correlation analysis shown above, it can be concluded that each independent variable has a positive value (0 ≤ r ≤ +1.00).
REVIEW OF LITERATUR E
- Theoretical Review
- Commercial Banks
- Capital Mobilization
- Factors that Influence to Capital Mobilization
- Customer Perception
- Previous Research
- Theoretical Framework
- Hypothesis
The probability value of the interest rate is 0.048, which is lower than 0.05 of the p-value, so there is significant influence on the interest rate towards increased capital mobilization (based on table 4.8). The probability value of the distribution network is 0.436, which is higher than 0.05 of the p-value, so there is no significant influence on the distribution network towards the mobilization of capital increase (based on Table 4.8). The probability value of security is 0.000 which is lower than 0.05 of p-value so there is significant influence of security towards capital increase mobilization (based on table 4.8).
Based on the result of Table 4.7 F-test, the researcher can conclude that there is a significant relationship between marketing, interest rate, distribution network and security regarding improvement capital mobilization in BIDV.
METHODOLOGY
Research Methodology
Due to the purpose of this research, the researcher uses the quantitative research methodology approach. Quantitative research is a type of research that uses structured data in the form of numbers, or data that can be immediately transformed into numbers. It is then analyzed at the end of the study when the participant level is reached.
In survey research, the researcher selects a sample of respondents from a population and administers a standardized questionnaire to them.
Operation Definitions
Research Instrument
- Data Collection
- Questionnaire
- Data Statistic
- Research Framework
Research presents here full analysis and discussion of the collected data which explains the factors that improve capital mobilization in BIDV bank. The result of the histogram of the residual should be bell-shaped and similar to the normal distribution (Render, Hanna, 2006). This means that 55.9% of the reinforcement capital is explained by the independent variables, while another 46.1% is explained by other factors excluded from the model.
From this research, the studies of four factors are limited to the perception of the researcher, which play an important role in influencing capital increase.
Sample Design
- Size of Population
- Margin of Error
- The Actual Sample Size
- The Respondents
- Sampling Method
Data Analysis
- Frequency Analysis
- Validity Test
- Reliability Test
- Testing the Hypothesis and Data Analysis
- Test the Hypothesis
To determine whether there is a relationship between independent variables, the test uses the measurement of the Variance Inflation Factor (VIF) value. Heteroscedasticity test is to see if there is inequality of variance of the residuals of the observations with other observations. To test the normality of the variables, this can be done by comparing the histogram of the residuals with a normal probability curve.
The relationship of residuals with one dependent variable may be obscured by the effects of other variables when multiple independent variables are included (John et al, 1998).
ANALYSIS AND INTERPRETATION
Company profile
BIDV was founded on April 26, 1957 in Hanoi, Vietnam as "Bank for Construction of Vietnam", under which name it operated until June 24, 1981, after which it changed its name to "Bank for Investment and Construction of Vietnam". And until November 14, 1990, it adopted its current name "Bank for Investment and Development of Vietnam". Most borrowers are state-owned enterprises; The bank's other portfolio also includes loans for government projects.
With its strength and experience in financing medium and long-term projects, BIDV has played a leading role in Vietnam's banking system over the past five decades.
Data Analysis
- General Description of research object
- Validity and Reliability
- Descriptive Analysis
- Classical Assumption Testing
The results shown in Figure 4.6 show that the number of customers with a long-term relationship (more than 3 years) accounted for about 40%, new customers (transaction about 1 year) accounted for 24%, customers associated with capital mobilization in 1-3 years get 36%. Thus, we can conclude that the majority of the respondents are satisfied with the statement "BIDV advertising attracts paying customers", which affects mainly marketing and, in general, the increase of capital mobilization. Thus, we can conclude that the majority of respondents are satisfied with the statement "BIDV has higher interest rates than other commercial banks", which mainly affects the interest rate and, in general, the increase in capital mobilization.
It can therefore be concluded that most respondents are satisfied with the statement "BIDV has integration maps with supermarkets" that the promotion of capital mobilization.
Normality Test
Thus, it can be concluded that most of the respondents are satisfied with the statement "BIDV puts many cameras/CCVC in ATM rooms" which have an impact on safety in particular and the promotion of capital mobilization in general. In addition to the normal probability graph, the normality test can also be measured by looking at the histogram. The histogram in Figure 4-10 shows that the curve in the center was properly bell-shaped, not skewed to the left or right, meaning that the data is normally distributed.
Multicollinearity Test
So, this regression is valid and suitable to be used for prediction improvement capital mobilization based on the independent variables (marketing, interest rate, distribution network, interest rate and security). The probability value of marketing is 0.939 which is higher than p-value 0.05, so there is no significant influence of marketing towards improvement capital mobilization (based on Table 4.8). The significance for this test is 0.000 (lower than 0.05); therefore, the four factors have significant impact on improving capital mobilization in BIDV.
Therefore, the researcher can conclude that marketing, interest, distribution network and security for BIDV have an influence on capital mobilization in BIDV.
Heteroscedasticity Test
Partial Regression Plot
- Measuring the variability of regression model
61 The partial regression graph in Figure 4.12 shows that the partial effects are point by point. The partial regression plot in Figure 4.13 shows that the partial effects are pointwise. The partial regression plot in Figure 4.14 shows that the partial effects are pointwise.
The partial regression plot in Figure 4.15 shows that the partial effects are pointwise.
Correlation (R)
- Testing Hypothesis
It follows that Table 4.6 below shows the correlation strength between the dependent variable and the independent variables.
F-test
Coefficient Determinant (R 2 )
T-test
66 that there is influence from independent variables (marketing, interest, distribution network, security) to dependent variables (improvement capital).
Multiple Linear Regression Model
- Interpretation of Results
Implement strict control measures, sanctions against banks that do not respect the upper limit of the capital mobilization interest rate. Tran Thi Hoa (2009), “Development Capital Mobilization Solution in BIDV, Ho Chi Minh Branch”, p. The Model of Capital Mobilization in Commercial Banks (2013), http://old.voer.edu.vn/module/economic/the-model-of-capital-.
This questionnaire is designed to collect information on the most important factors affecting capital mobilization in BIDV (Bank for Investment and Development of Vietnam).
CONCLUSIONS AND RECOMMENDATIONS
Conclusions
Based on the previous research, the researcher has found four factors that affect BIDV's capital. Based on Table 4.9 T-Test, the researchers showed that excluding interest and security has an influence on BIDV's capital; marketing and distribution networks have no influence on capital mobilization because their significant is higher than p-value 0.05 (marketing: 0.939; . distribution network: 0.489). In addition to that, based on Table 4.5 Correlation analysis, the significant correlation between the independent variables themselves is more than moderate.
So, to increase capital mobilization in BIDV, it is very important to improve four factors, especially in marketing service and distribution network.
Recommendation
- For State Bank
- For BIDV
- For Future Researchers
73 - Furthermore, in Table 4.6, it also stated that the whole of four variables (marketing, interest rate, distribution network and security) have strong positive correlation with improvement capital mobilization. The future researchers should analyze more about those other factors to have a complete point of view and a deeper analysis about capital mobilization. Clarance Kipobota (2007), “Improving Capital Mobilization Skills for Rural Economic Development Projects – Case Study in WACOD – Women in Kisarawe District, Coast Region, Tanzania”, p.34.
Nguyen Phuong Thao (2012), “Capital Mobilization at Joint Stock Commercial Bank for Foreign Trade of Vietnam – Hai Phong Branch”, p. Commercial Bank (2013), http://www.mas.gov.sg/singapore-financial-centre/types-of-institutions/commercial-banks.aspx. Definition of Primary and Secondary Data, (2013), http://www.ask.com/question/what-is-the-definition-of-primary-and-.
SPSS output
Table of Critical Values for Pearson’s r
Descriptive Analysis
Q uestionnaire Sample
Raw Data of Q uestionnaires
