Operational efficiency of Savings and Loan Group in Kim Bang

In order to transfer policy credit capital to the right beneficiaries, in recent years, the Transaction Office of the Social Policy Bank (SPB) of Kim Bang district has signed joint documents with mass organizations such as the Veterans Association, Farmers' Association, Women's Union, Youth Union and entrusted contracts with 100% of commune-level organizations in the area. Determining that this is an important task, contributing to the effective implementation of the propaganda work of policy credit policies in the locality, the socio-political organizations and unions in the district have actively mobilized, consolidated and improved the quality of operations of the Savings and Loan Group (TTK&VV), regularly urging the Group Management Board to implement the content of the contract signed with the bank, and maintaining Group meetings according to regulations.

To improve the efficiency of policy credit capital entrustment, the District Social Policy Bank Transaction Office actively coordinates with the superior bank and local authorities to organize professional training for union officials, the Group Management Board and regularly evaluate the quality and performance of the TTK&VV. As of August 31, 2023, the whole district has 213 groups (an increase of 1 group compared to the beginning of the year), of which 206 groups are classified as good, accounting for 96.71%; 5 groups are classified as fair, accounting for 2.35%; 2 groups are classified as average, accounting for 0.94%.

According to the assessment, the entrustment of policy credit through associations and organizations, directly through TTK&VV, has contributed to the socialization of poverty reduction, creating transparency and accuracy in identifying policy beneficiaries, limiting the occurrence of negative phenomena at the grassroots level. At the same time, it has created conditions for socio-political organizations to gather forces, increase the number of members, improve quality, strengthen the grassroots political system and help the bank to organize a wide network to villages and residential groups. Thanks to that, the district's policy credit activities in the past have been closely monitored, limiting risks, avoiding cases of embezzlement and borrowing.

Operational efficiency of Savings and Loan Group in Kim Bang — ***Staff of the Kim Bang District Social Policy Bank Transaction Office carry out loan procedures for customers at the Hoang Tay Commune Transaction Point.*** Photo: Thong Thao

As of August 31, 2023, the total outstanding debt from the district's policy credit programs reached VND 512,143 million with 7,970 households with outstanding debt, an increase of VND 39,894 million compared to the beginning of the year, reaching 98.41% of the annual plan. Communes with high outstanding debt include: Tan Son VND 47,162 billion; Van Xa VND 43,370 billion; Dong Hoa VND 42,275 billion; Le Ho VND 35,339 billion... Due to good management, bad debt in the area currently accounts for only 0.12% of total outstanding debt and the whole district has 15/18 communes with no overdue debt. Along with outstanding loans, mobilized capital in the area reached 70,494 billion VND, equal to 91.76% of the annual plan, of which, savings deposits through groups were 24,085 billion VND and deposits from organizations and individuals were 46,409 billion VND. Currently, the TTK&VV in Tan Son commune has 807 members, of which 98.9% of the members participate in savings deposits with an amount of more than 2,395 billion VND.

Mr. Nguyen Van Chanh, Chairman of the Commune People's Committee, said: The activities of the TTK&VV in recent times have truly become an "extended arm" bringing policy credit capital to poor households and policy families. Thereby, helping the association effectively integrate credit programs with agricultural extension work and transfer of applied techniques into production. Thanks to that, not only has the effectiveness of preferential capital been improved, but the prestige and quality of activities of local associations and unions also increased.

To continue to consolidate and improve the quality of TTK&VV activities in the area, Ms. Le Thanh Hue, Director of the District Social Policy Bank Transaction Office, said: First of all, it is necessary to enhance the role and responsibility of each member in TTK&VV. Party committees, authorities, and unions at all levels also need to strengthen inspection, supervision, and coordination to promptly resolve difficulties and problems at the grassroots level; attach importance to training in professional skills for the Management Board and the contents of signed authorization contracts, and strictly comply with regulations in transactions with banks. Loan evaluation work must be serious, public, and targeted to the right subjects, with the participation, witnessing, and supervision of authorities, associations, and unions. Only then can the effectiveness of policy credit programs in the locality be promoted.

Phung Thong

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