Expanding banking network

The banking system is expanded.

Over the years, Dak Nong has attracted many credit institutions to operate. The expansion of the credit institution network not only meets the demand for loans, but also plays an important role in promoting local economic development. This is a favorable condition for businesses to access capital and improve their competitiveness.

Joint Stock Commercial Bank for Investment and Development (BIDV) Dak Nong Branch

There are currently 17 credit institutions operating in Dak Nong. Of these, there are 8 branches and 43 affiliated transaction offices. The credit system in Dak Nong is being improved, with the presence of major commercial banks such as Agribank, BIDV, VietinBank, Vietcombank.

Recently, Dak Nong has been the choice of many small-scale credit institutions such as: Ban Viet Bank, MBBank, VPBank, OCBBank... In the near future, in December 2024, Bac A Commercial Joint Stock Bank will officially come into operation.

The banking system is operating vigorously, with the participation of many commercial banks, credit funds, and financial companies. Competition is increasing among these organizations, forcing each bank to innovate and diversify its products, financial services, and service styles, etc.

Credit products do not stop at traditional loans but also expand to products such as: business credit loans, short-term loans, mobile loans, overdraft loans, etc.

Many credit institutions have developed flexible loan packages with preferential interest rates. The approval policy is open and quick to attract customers.

This helps businesses in Dak Nong have more options when looking for capital sources, easily accessing loans.

Orient Commercial Joint Stock Bank (OCB) Dak Nong Branch

Mr. Le Minh Thanh, Director of Viet Toan Company Limited, Dak R'lap District (Dak Nong) said that in the past, it was very difficult to borrow money from the bank. The procedure took a lot of time. Now, everything is different.

“There are times when 3-4 banks call businesses to check whether they need to borrow capital for production or not. Businesses have the right to consult procedures, interest rates, and loan terms. From here, we can choose a more reliable and preferential address to borrow capital,” said Mr. Thanh.

From the perspective of a credit institution, the leader of the Bank for Agriculture and Rural Development (Agribank) Dak Nong Branch believes that the operation of credit institutions is not necessarily a challenge, but is considered a driving force.

"The motivation for our branch and staff to improve our products, services, and service style, and to focus more on customers," shared the leader of Agribank Dak Nong Branch.

To help banks find customers, the State Bank of Dak Nong province organizes a program connecting banks and businesses.

Many credit institutions organize credit consulting seminars to exchange information, helping businesses better understand suitable financial products and services.

Banks also pay attention to understanding the needs and difficulties of businesses in the process of borrowing capital, thereby improving products and services to better meet the needs.

Credit officers of OCB Bank, Dak Nong Branch introduce and disseminate loans to businesses and business households in Dak R'lap district (Dak Nong)

Credit institutions have introduced more attractive interest rate policies to attract customers. Currently, many banks have implemented preferential loan packages with interest rates reduced by 0.5 - 1.5%/year compared to the normal interest rate, especially for businesses.

Credit institutions are actively applying digital technology to financial services, deploying electronic banking services, helping customers easily access and use financial services anytime, anywhere.

Continue to attract credit institutions

Although, compared to previous years, Dak Nong has attracted many credit institutions to operate. However, compared to the actual needs of the locality, as well as neighboring provinces, the credit network in Dak Nong is still relatively limited in scale and scope of operation.

This creates certain difficulties for businesses when accessing financial services, especially in remote areas.

Customers transact at Military Bank (MB Bank) Dak Nong Branch

According to the Director of the State Bank of Dak Nong Province Branch, in recent times, the Central State Bank and localities have created favorable conditions to support and encourage credit institutions to develop.

In the past, to open more branches and transaction offices, banks had to meet many strict criteria on charter capital, risk management ability, and business efficiency.

Recently, the State Bank has adjusted this regulation to reduce minimum capital requirements and simplify licensing procedures.

This helps credit institutions easily expand their operations and meet financial needs in remote areas where access to financial services is limited.

Customers transact at VPBank Dak Nong Branch

“As the number of branches and transaction offices increases, businesses in rural, remote and isolated areas will have more opportunities to access financial services. This will help businesses easily borrow capital to invest, expand production and business, contributing to economic growth,” emphasized Mr. Pham Thanh Tinh, Director of the State Bank of Vietnam Dak Nong Branch.

While expanding the credit network brings many benefits, there are certain problems. In particular, the problem of credit risk management when expanding operations to new areas.

Assessing customers' ability to repay debts in remote areas is still difficult due to lack of financial information.

To solve this problem, the State Bank needs to strengthen supervision and risk management, and require credit institutions to enhance their credit assessment capacity.

Strengthening cooperation between credit institutions and local authorities is also an effective solution to grasp the actual needs of people, thereby building appropriate financial products.

Vietnam Prosperity Joint Stock Commercial Bank (VP Bank) Dak Nong Branch will come into operation from the beginning of October 2024

According to Mr. Tinh, to attract and facilitate credit institutions to operate smoothly, local authorities need to implement many support measures and create a favorable business environment.

Local authorities should facilitate transaction offices of banks and credit institutions by minimizing unnecessary administrative procedures.

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Dak Nong needs to create a special mechanism to handle administrative procedures related to business registration, construction licensing and related documents for credit institutions when they come into operation.

Mr. Pham Thanh Tinh, Director of State Bank of Dak Nong Province Branch

Source: https://baodaknong.vn/mo-rong-mang-luoi-ngan-hang-doanh-nghiep-them-co-hoi-234946.html