The only bank whose board of directors is almost entirely composed of ministers and deputy ministers.

Conference scene - Photo: GIA HAN

On the morning of July 2, the Central Economic Committee, the Ho Chi Minh National Academy of Politics, and the Vietnam Bank for Social Policies held a scientific workshop on orientations, tasks, and solutions to continue strengthening the Party's leadership over social policy credit in the new context.

Workshop to serve the project of summarizing Directive 40 of 2014 of the Secretariat on strengthening the Party's leadership in social policy credit.

There is a bank manager wearing a T-shirt going into a pharmacy and coming out with bad luck.

In his opening speech, Deputy Head of the Central Economic Commission Nguyen Hong Son affirmed that social policy credit is a creative solution, deeply humane, and suitable to Vietnam's reality.

However, he said the international context and situation continue to evolve rapidly, strongly, complexly and unpredictably, and many new trends are emerging, posing new requirements for the operation of social policy credit.

At the same time, it requires new perspectives and new solutions, especially to improve the quality of social policy credit operations...

Therefore, he suggested that it is necessary to analyze, discuss and clarify further the results achieved, limitations, difficulties, obstacles, causes and lessons learned in the process of implementing Directive 40...

Speaking here, General Director of the Bank for Social Policies Duong Quyet Thang recalled the process of the bank's establishment.

Regarding the name of the bank, he said there was "controversy". Some people said to keep the name Bank for the Poor because the name has been in use for many years. Some said the name People's Bank, some said Policy Bank.

"But the bottom line is the Policy Bank. One of them is the social policy and the Development Bank. As for the name Bank for the Poor, it has been in operation for 7 years but that name has not been accepted yet.

Because the Bank for the Poor prints a calendar every year but no one hangs it up. There was a department head who wore a T-shirt to the pharmacy and had to burn his luck because behind it were the words "Bank for the Poor"..., Mr. Thang stated and said that the bank officially started operating on March 11, 2003.

Mr. Thang emphasized that the social policy credit model is a model that only exists in Vietnam and when establishing the bank, many international organizations were also concerned.

Because of market principles, a credit institution lends at positive interest rates, borrows to lend, but we lend at negative interest rates. Even 6% interest rate while the market is 12% - 14%.

"Here, we have applied fiscal and credit policies. Along with that, mobilize the lowest, cheapest, and even no interest payment.

168,000 loan groups will work with the people, 10,426 commune transaction points... A model close to the people, for the people, saving maximum costs for the people. This helps the policy support package to be implemented quickly," Mr. Thang further emphasized.

Associate Professor, Dr. Le Thanh Tam - Photo: GIA HAN

World's #1 coverage

Associate Professor, Dr. Le Thanh Tam, Institute of Banking and Finance, National Economics University, assessed that there are 9 strengths of the Social Policy Bank.

At the time of its establishment, many international organizations such as the World Bank and ADB did not highly appreciate the Social Policy Bank model. However, after 30 years, it has proven to be a suitable model and many international organizations have come to learn from Vietnam.

Another strength is its extensive network of operations. This is the only bank in Vietnam with branches in 99.99% of communes.

"It can be said that this bank's coverage is number 1 in the world, no bank in any country has it," Ms. Tam said.

Along with that, she said the bank's operating model is extremely effective, closely linked with local socio-political organizations. Four socio-political organizations are key members.

"This is the only bank where almost all board members hold ministerial and deputy ministerial positions. No other country has this model.

When carrying out these activities, officials of local political organizations have higher responsibility and ownership than other credit institutions," Ms. Tam added.

However, according to Ms. Tam, there are still some limitations such as products are not really diverse, payment services are limited, attracting human resources is still difficult...

The chairwoman of the bank's board of directors is State Bank Governor Nguyen Thi Hong.

Board members: Minister, Chairman of the Ethnic Committee Hau A Lenh, Chairman of the Vietnam Farmers' Union Luong Quoc Doan, Chairman of the Vietnam Women's Union Ha Thi Nga, Secretary of the Central Youth Union Ngo Van Cuong, Deputy Head of the Government Office Mai Thi Thu Van, Deputy Minister of Finance Nguyen Duc Chi, Deputy Minister of Planning and Investment Tran Quoc Phuong.

Deputy Governor of the State Bank Dao Minh Tu, Deputy Minister of Labor, War Invalids and Social Affairs Le Van Thanh, Deputy Minister of Agriculture and Rural Development Tran Thanh Nam, Vice President of the Vietnam Veterans Association Pham Hong Huong.

In addition, there are 2 members: Mr. Duong Quyet Thang (general director) and Mr. Nguyen Manh Tu (head of the board of control).

Source: https://tuoitre.vn/ngan-hang-duy-nhat-co-gan-nhu-tat-ca-thanh-vien-hoi-dong-quan-tri-la-bo-truong-thu-truong-20240702112507554.htm