On the afternoon of March 12th, the State Bank of Vietnam - Thanh Hoa Provincial Branch (SBV Thanh Hoa) collaborated with the Vietnam Cooperative Bank - Thanh Hoa Provincial Branch (CoopBank Thanh Hoa) to organize a conference to evaluate the activities of People's Credit Funds (PCFs) in 2023 and implement tasks for 2024.
Overview of the conference.
Currently, there are 67 licensed People's Credit Funds operating in 18 districts, towns, and cities in the province, with a total operating capital of VND 8,684 billion (excluding 3 People's Credit Funds under special supervision: Hoang Dong, Hoang Trinh, and Van Son)... Of which, charter capital is VND 387.9 billion, and mobilized deposits reach VND 7,695.2 billion... The total outstanding loan balance is VND 6,264 billion, with an average outstanding loan balance of VND 97.88 billion per fund. The credit quality of the funds is basically ensured, with the non-performing loan ratio within the permissible limit, accounting for 0.4% of the total outstanding loan balance.
Delegates attending the conference.
Overall, the management, operation, and control of credit unions have received significant attention in recent times. The key personnel of credit unions have been fundamentally reviewed, replaced, and rotated in a positive, youthful manner, meeting the required standards and conditions to ensure safe and efficient operation. The operations of credit unions have met the basic objectives of mutual assistance among members and community development, while simultaneously covering costs, preserving capital, and accumulating reserves for future growth. As a result, members' rights are protected, and credit unions have the resources to expand and develop sustainably.
Delegates present their papers at the conference.
To improve the operational quality of People's Credit Funds in the area, the State Bank of Vietnam in Thanh Hoa regularly coordinates with relevant sectors and local authorities to direct People's Credit Funds to strictly control credit quality and liquidity. They must comply with interest rate policies and maintain safe ratios as prescribed. Regularly, they conduct awareness campaigns to maintain good local capital mobilization, meeting the borrowing needs of members.
Representatives from CoopBank Thanh Hoa delivered presentations at the conference.
Simultaneously, strengthen communication, consensus, openness, transparency, and adherence to regulations. Strictly comply with the regulations of the State Bank of Vietnam on capital mobilization activities, credit policies, interest rates, lending procedures, target groups, and loan amounts. In addition, focus on promoting the application of information technology in governance, financial management, accounting, and reporting according to regulations; diversify products and services, and maximize the advantages of the People's Credit Fund's operations to improve access to capital and financial services for members.
Besides the achievements, the operation of the People's Credit Fund system in the past period still revealed shortcomings and limitations, such as: Management and operation activities have not been carried out in accordance with the functions and tasks as prescribed by law; control activities have not been carried out in accordance with regulations and have not performed their functions and tasks properly, thus failing to prevent and warn of risks, leading to many violations that could not be rectified in a timely manner.
The conference focused on discussing and agreeing on several tasks to be implemented in 2024, such as: Continuing to vigorously and effectively implement the Project on restructuring the system of People's Credit Funds associated with handling bad debts in the 2021-2025 period; continuing to direct People's Credit Funds to strictly implement the regulations and directives of the Government, the State Bank of Vietnam, and localities, especially Directive No. 06/CT-TTg of the Prime Minister on strengthening solutions to ensure safety and consolidate the People's Credit Fund system.
Director of the State Bank of Vietnam in Thanh Hoa, Tong Van Anh, delivered a speech at the conference.
People's credit funds must strictly adhere to the restructuring plan and bad debt resolution procedures, ensuring compliance with regulations and timelines, while maintaining the required safety ratios. They must also strictly comply with the State Bank of Vietnam's regulations on deposit interest rate ceilings and lending interest rate ceilings for priority sectors. Simultaneously, they should strengthen membership development in neighboring areas to increase loan balances.
In addition, attention must be paid to credit quality, focusing on production sectors and priority areas, especially lending to agriculture and rural areas, consumer loans, and loans to meet the capital needs of people and businesses.
People's credit funds must proactively reduce operating costs and profit targets to create conditions for lowering lending interest rates and sharing the difficulties with members. At the same time, they should continue to focus on training staff to meet increasingly demanding job requirements, building infrastructure, and ensuring the security of information technology systems in their operations...
Khanh Phuong
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