Solution to Promote Consumer Lending Activities at Military Commercial Joint Stock Bank Dong Da branch, Vietnam

Lending activity is a traditional and most important operation of commercial banks because it is the operation that brings the largest source of profit for the Bank. However, along with that, there are quite large potential consequences and risks from this activity if not given timely attention and care. In particular, consumer loans are one of the typical products, accounting for a high proportion of the Bank's operations, creating maximum conditions to help reduce the burden on households with home repairs, buying a car or getting medical treatment, as well as other necessary needs in life. On the Bank's side, expanding consumer lending is an immediate and long-term goal to further promote retail banking activities. This is a product that has an important position in the business activities of Military Commercial Joint Stock Bank (MB) Dong Da branch, with a great influence on other business areas. Furthermore, consumer loans are a profitable item because consumer loan interest rates are often higher than other types of loans. In addition, banks can expand relationships with customers to increase their ability to mobilize other services. Besides the advantages and strengths gained from its long-standing foundation and reputation in the banking sector, MB Dong Da also encountered many obstacles. In recent times, high bad debts from customers not being able to repay their debts, or the frozen real estate market are the main reasons why the Bank's profits have decreased quite a lot. Therefore, the article focuses on researching the causes to overcome difficulties as well as proposing directions to improve the quality of consumer loan services - MB Dong Da's strong business area to continue to develop. Sustainable development in the future.