On the afternoon of March 12, the State Bank of Vietnam - Thanh Hoa Provincial Branch (SBV Thanh Hoa) coordinated with the Cooperative Bank of Vietnam - Thanh Hoa Provincial Branch (CoopBank Thanh Hoa) to organize a conference to evaluate the activities of the People's Credit Fund (PCF) in 2023 and deploy tasks for 2024.
Conference overview.
Currently, the province has 67 QTDNDs licensed to operate in 18 districts, towns and cities with a total operating capital of VND 8,684 billion (excluding 3 QTDNDs under special control, namely Hoang Dong, Hoang Trinh and Van Son)... Of which, the charter capital is VND 387.9 billion, mobilized deposits are VND 7,695.2 billion... Total outstanding loans are VND 6,264 billion, with an average outstanding credit balance of VND 97.88 billion per fund. The credit quality of the funds is basically guaranteed, the bad debt ratio is within the allowable limit, accounting for 0.4% of total outstanding loans.
Delegates attending the conference.
In general, the management, operation and control work in the People's Credit Funds has been paid attention to and focused on in recent times. The key personnel of the People's Credit Funds have been basically reviewed, replaced, rotated in a positive, youthful direction and met the regulations on standards and conditions to ensure that the People's Credit Funds operate safely and effectively. The activities of the People's Credit Funds have met the basic goals of supporting members, developing the community, while at the same time covering costs, preserving capital and accumulating for development. Thanks to that, the rights of members are guaranteed, the People's Credit Funds have conditions to accumulate for expansion and sustainable development.
Delegates at the conference.
To improve the quality of QTDND operations in the area, the State Bank of Thanh Hoa regularly coordinates with relevant sectors and local authorities to direct QTDNDs to strictly control credit quality and liquidity. Comply with interest rate policies, maintain safety ratios according to regulations. Regularly promote to maintain good local capital mobilization, meeting members' borrowing needs.
Representative of CoopBank Thanh Hoa leadership spoke at the conference.
At the same time, increase exchange, unification, publicity, transparency, and compliance with regulations. Strictly comply with the regulations of the State Bank of Vietnam on capital mobilization activities, credit policies, interest rates, lending procedures, loan subjects and levels. Along with that, focus on promoting the application of information technology in administration, financial management, accounting, bookkeeping and reporting regime according to regulations; diversify products and services, maximize advantages in the operation of the People's Credit Fund to improve access to capital and financial services for members.
In addition to the achieved results, the operation of the QTDND system in recent times still reveals shortcomings and limitations, such as: Management and operation activities have not performed their functions and tasks in accordance with the provisions of law; control activities have not been in accordance with regulations, have not performed their functions and tasks properly, so they have not prevented or warned of risks, leading to many violations that have not been promptly remedied.
The conference focused on discussing and agreeing on a number of tasks to be performed in 2024, such as: Continuing to resolutely and effectively implement the Project on restructuring the system of People's Credit Funds associated with handling bad debts in the period of 2021-2025; continuing to direct People's Credit Funds to strictly implement the regulations and guidelines of the Government, the State Bank and localities, especially Directive No. 06/CT-TTg of the Prime Minister on strengthening solutions to ensure safety and firmly consolidate the People's Credit Fund system.
Director of State Bank of Thanh Hoa Tong Van Anh spoke at the conference.
The People's Credit Funds must strictly implement the restructuring plan and handle bad debts in accordance with the content and time sequence, focusing on ensuring safety ratios according to regulations. Strictly implement the regulations of the State Bank of Vietnam on the ceiling interest rate for mobilization as well as the ceiling interest rate for lending to priority areas in operations. At the same time, strengthen the work of developing members in adjacent areas to increase outstanding loans.
In addition, it is necessary to pay attention to credit quality, focusing on production sectors and priority sectors, especially lending to agriculture, rural areas, consumer lending, serving life, meeting the capital needs of people and businesses.
QTDND must proactively reduce operating costs and reduce profit targets to create conditions to reduce lending interest rates to share difficulties with members. Along with that, continue to pay attention to training staff to meet increasingly high job requirements, build facilities, ensure the safety of information technology systems in operations...
Khanh Phuong
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