Improving the management and operation capacity of people's credit funds

With the advantage of understanding the area, low operating costs, and the goal of supporting members, the development of the grassroots people's credit fund system in the province in recent times has had an important meaning in the process of providing capital to serve local socio-economic development, minimizing usury, and contributing to stabilizing local security and order.

Minh Phuong Ward People's Committee, Viet Tri City increases investment in resources, improves staff qualifications, and meets task requirements in the new situation.

Promote restructuring for development

The operation of the QTDND system is mainly mobilization and lending, in addition to the potential risk factors from the customer side, the risk related to professional ethics is also very important. Therefore, restructuring to ensure the safe and effective development of the QTDND system is an important and inseparable task to overcome internal limitations, improve the financial market, and strengthen the operational capacity of each fund as well as the entire system.

Recognizing that importance, the journey of restructuring the People's Credit Fund system in the province has been implemented throughout the implementation of the Project on restructuring the system of credit institutions in the period of 2011 - 2015, the Project on restructuring the system of credit institutions (CIs) associated with bad debt settlement in the period of 2016 - 2020 to present, the Project on restructuring the system of credit institutions associated with bad debt settlement in the period of 2021 - 2025, with a vision to 2030; especially implementing Directive 06/CT-TTg, dated March 12, 2019 of the Prime Minister on strengthening solutions to ensure operational safety and firmly consolidate the People's Credit Fund system. The State Bank of Vietnam's provincial branches have proactively classified funds with potential risks to have appropriate handling solutions.

At the same time, research and develop a breakthrough strategy to serve management work by focusing on building an information connection system between the State Bank and funds, guiding funds to operate according to the scale of outstanding loans, organizing plans to expand operating areas, arranging operations after merging administrative boundaries and orienting salaries...

In addition, the State Bank of Vietnam's provincial branches have arranged and assigned many officers to monitor and manage, coordinate with relevant units to support the activities of the People's Credit Fund, and increase visits to the grassroots to grasp difficulties and problems to direct the resolution of recommendations within their authority.

In addition, the State Bank of Vietnam’s provincial branches also conduct inspections and supervision to promptly detect, warn, handle violations of the law, and impose administrative sanctions... towards ensuring the safe and healthy development of the People’s Credit Fund system. Thereby protecting the legitimate rights and interests of depositors and customers, contributing to limiting usury, and enhancing public confidence in the People’s Credit Fund system in the area.

As one of the first 6 funds established in the province, Mr. Nguyen Van Minh - Chairman of the Board of Directors of QTDND Duu Lau, Viet Tri City shared: In monetary business activities, the restructuring issue is always the top priority of the fund. The Fund closely follows and correctly implements the restructuring plan associated with bad debt handling, strengthens administrative procedure reform, builds a communication culture; actively trains and fosters professional capacity and ethics for the team, always takes the lead in applying information technology, actively deploys digital banking services... In professional activities, the Fund proactively grasps the market, adjusts deposit and loan interest rates reasonably, proposes many solutions to improve credit quality as well as promptly remove difficulties for customers borrowing capital... Therefore, the quality and efficiency of the Fund's operations are increasingly improved, the people trust and accompany the Fund.

Reality shows that, not only QTDND Duu Lau but also the entire system, the restructuring is always carried out by the funds in the direction of promoting, rectifying, consolidating, and improving the level of safety and efficiency, along with continuing to steadily expand new funds in rural areas; ensuring that the fund complies with the provisions of the Law on Credit Institutions and the Law on Cooperatives; respecting the principles of voluntariness, autonomy, self-responsibility, mutual benefit, cooperation and community development towards the main goal of mutual assistance among the fund members.

The funds focus on improving financial capacity, management capacity, operation, professional skills and bad debt handling, gradually diversifying business activities. Therefore, despite difficulties, the funds in the province operate effectively, develop stably, and credit quality indicators generally meet requirements.

QTDND Hung Viet, Cam Khe district inspected the process of using loan capital in livestock development of member Nguyen Manh Dung in Phu Xuan area, Hung Viet commune.

Building an increasingly strong system

With the synchronous participation of the entire political system and the strong direction of the banking sector, up to now, the whole province has 39 funds and 16 transaction offices. Total operating capital is over 8,000 billion VND, outstanding loans are over 6,400 billion VND with over 53,000 members, charter capital is over 325 billion VND; bad debt is under control, all funds have spacious working offices with equipment meeting requirements; 100% of funds apply information technology in transaction activities, 36/39 funds participate in the CF-eBank electronic money transfer system...

In order to build an increasingly strong fund system, in the coming time, the State Bank of Vietnam Provincial Branch will continue to focus on reviewing, consolidating and rectifying the entire QTDND system to ensure stability, safety, health, efficiency, and improve governance and management capacity on par with the scale of operations.

Along with addressing shortcomings and limitations, it is necessary to strengthen state management of the QTDND system through supervision, inspection and examination, contributing to preventing and repelling potential risks, not affecting the safety of the QTDND system in particular and the safety of the credit institution system in general.

Implement mechanisms and policies to link responsibilities and interests among members of the People's Credit Fund, link the People's Credit Fund with the Cooperative Bank, the People's Credit Fund Association, and the Preservation Fund to develop the People's Credit Fund system. Continue to strengthen support activities when there are liquidity risks, and support each other during operations among the People's Credit Funds in the province...

The People's Credit Fund system focuses on improving management, operation and internal control capacity, developing and implementing rules and regulations, ensuring liquidity, programming risk reserves, restructuring and handling bad debts.

Mr. Pham Truong Giang - Director of the State Bank of Vietnam's provincial branch emphasized: The fund system continues to affirm itself as a new cooperative economic model operating effectively in the monetary and credit sector. Accordingly, the funds continue to promote restructuring associated with bad debt settlement in the 2021-2025 period, with a vision to 2030; strengthen consolidation and development in accordance with the goals and principles of operation in accordance with the provisions of law and international practices; operate safely, effectively, stably and sustainably, meet capital needs, improve financial access of members, towards the main goal of mutual support and assistance in production, business, and improving life. The funds continue to improve their capacity, gradually digitize management and operations according to the roadmap of the State Bank of Vietnam and the province on digital transformation... Thereby, contributing to sustainable poverty reduction, limiting usury, ensuring social security, and promoting local socio-economic development.

Phuong Thao

Source: https://baophutho.vn/nang-cao-nang-luc-quan-tri-dieu-hanh-quy-tin-dung-nhan-dan-220154.htm