With outstanding loans of more than VND 4,000 billion, the Co-opBank Bac Ninh Branch is affirming its role as a focal point in supporting the system, especially in improving the operational capacity of People's Credit Funds.
From the syndicated lending model to digital transformation, Co-opBank Bac Ninh not only strengthens the credit safety foundation but also creates the image of a new type of cooperative bank: Professional, accompanying and spreading community values.
Maintain a steady rhythm of activity
Lim Town People's Credit Fund (Tien Du Commune, Bac Ninh Province) has gone through 29 years of formation and development and has overcome many ups and downs, gradually becoming a reliable financial support for more than 1,000 members. Total mobilized capital is currently over 200 billion VND.
Mr. Nguyen Huu Hoa, Chairman of the Board of Directors of the Lim Town People's Credit Fund, recalled: "In the early years, people were still cautious, even skeptical of the credit fund model. But thanks to the close support of Co-opBank and the local government, we have built trust through financial discipline, transparency and the spirit of serving the community."
After Bac Ninh merged its administrative units, the management of the People's Credit Funds' areas sometimes encountered difficulties due to overlapping scope of operations. However, up to this point, the State Bank has directed: Maintain the traditional areas of each fund to ensure stable operations.
As in the case of Tien Du commune, there are two People's Credit Funds operating in the same area (of Lim Town and the former Noi Due commune). While waiting for the merger instructions, the funds still maintain the old model, focusing on serving the licensed areas. With the close supervision and flexible regulation of the State Bank and Co-opBank, the capital mobilization activities of the funds remain stable, without arising credit risks.
In addition, from 2018 to present, Co-opbank Bac Ninh has coordinated with the State Bank of Bac Ninh Province (now the State Bank of Region 12) to support Ngu Thai People's Credit Fund; directly assigned many officials and leaders to participate, coordinate with the State Bank to work closely with members to overcome difficulties. Up to now, Ngu Thai People's Credit Fund has paid out all savings deposits of people deposited at the fund.
According to Mr. Nguyen Huu Hoa, during its operation, Co-opBank Bac Ninh has always been the “midwife” in terms of capital, operations and technology for the People’s Credit Funds in the area. In the early stages, the Lim Town People’s Credit Fund often lacked capital and had to borrow from Co-opbank.
In recent years, when the mobilized capital increased sharply, the fund became the unit that deposited capital back to Co-opBank, with a regular balance of about 86 billion VND. At the same time, Co-opBank also gave the funds many preferential interest rate policies, helping to stabilize the capital cost level and ensure financial security.
In fact, the capital regulation work of Co-opBank Bac Ninh over the past 30 years has always been a "pillar" for Lim Town People's Credit Fund in particular and other funds in the area in the development journey.
From the early days as a fulcrum to help funds have capital to ensure their existence and ability to operate continuously in a context where confidence is still not strong, to today, together solving the problem of population deposits increasing faster than the speed of credit expansion with interest rates always given priority, and higher than population mobilization.
According to data from Co-opBank Bac Ninh, up to now, the capital deposits of People's Credit Funds at the branch have reached more than 2,000 billion VND. This is both a reserve resource and an important liquidity "buffer", helping Co-opBank perform well its role as "bank of funds".
Along with that, through the implementation of syndicated loan products, Co-opBank Bac Ninh also supports funds to improve financial capacity to lend to large members with capital needs exceeding the allowed limit, serving large-scale business projects in the locality, thereby indirectly promoting the local core economy .
For example, at the Lim Town People's Credit Fund, with a current charter capital of 15 billion VND and equity capital of about 23 billion VND, the Fund continues to maintain the capital safety ratio, fully meeting the regulations of the State Bank. Loans currently reach a maximum of 3 billion VND/loan, including a case of co-capitalization with Co-opBank Bac Ninh up to 8 billion VND.
“Synergy not only improves competitiveness and helps the fund share risks, but through product deployment, fund staff can learn and improve their loan appraisal and capital management skills, etc. All of these supports have helped the fund transform from a traditional credit institution into a modern financial service provider that meets the needs of members and the development of the local economy,” said Mr. Nguyen Huu Hoa.
To date, the total outstanding debt of Co-opBank Bac Ninh Branch has reached about 4,000 billion VND, of which more than 100 billion VND is for lending to People's Credit Funds. Director of Co-opBank Bac Ninh Branch Nguyen Ngoc Thanh said: "Previously, many funds were hesitant to participate in syndication because of concerns about procedures and risk control. But reality has proven: syndication helps standardize lending processes, improve monitoring capacity and share responsibility between banks and funds".
Digital transformation companion
Not only supporting the People's Credit Fund system through capital regulation, Co-opBank has also increasingly demonstrated its important role in becoming a "midwife" in terms of operations and technology. Currently, the branch has deployed the CF-ebank electronic banking system for 21/23 People's Credit Funds operating in the area.
In recent years, digital transformation has been a bright spot of Lim Town People's Credit Fund when it has applied the CF-eBank platform, opened more than 200 payment accounts for customers, deployed payment agent services, money transfer, bill payment, etc., gradually bringing the credit fund model closer to modern banking services.
“Notably, after more than 2 years of implementing digital transformation, no operational errors have occurred, demonstrating the risk management capacity, professional ethics and high compliance spirit of the fund staff,” said Nguyen Huu Hoa, Chairman of the Board of Directors of Lim Town People's Credit Fund.
Director of Co-opBank Bac Ninh branch Nguyen Ngoc Thanh also said that Co-opBank Bac Ninh is currently promoting digital banking for People's Credit Funds, including transfer disbursement, non-cash payment, collection and payment agency. Up to now, the rate of funds applying the form of disbursement via transfer is still modest, but is increasing steadily.
In 2024 alone, the number of money transfer transactions through the CF-ebank system will reach 6,970 items, with a total turnover of up to VND 1,706 billion. Incoming money transfer transactions will reach 33,225 items, with a turnover of VND 2,240 billion, an increase of 200% over the same period in 2023.
"This demonstrates the effectiveness of applying technology in payment work and helps People's Credit Funds increase access to modern financial services," Mr. Nguyen Ngoc Thanh emphasized.
In addition to its role as a “safe pillar” of the fund system, Co-opBank Bac Ninh also directly supports businesses, business households and local people in accessing transparent and convenient capital sources.
One of the typical customers is Ms. Nguyen Thi Dung, owner of an educational center and specialized psychological clinic operating in the area since 2013. Her facility has nearly 500 students, more than 100 teachers and psychologists, with a revenue of about 1 billion VND per month.
With a loan balance of about 7 billion VND, although she thinks that the granted limit is not enough to meet the demand because this unit has a larger capital demand to expand its scale, Ms. Dung shared: "What makes me stick with Co-opBank is not only the loan limit or interest rate, but the way they accompany me. They do it for real, give good advice, and always aim for sustainability."
Similarly, Ms. Vu Thi Than (Thanh Binh street, Dong Nguyen ward), owner of Thanh Thang handicraft business, a customer who has been with Co-opBank Bac Ninh for eight years, also shared: Thanks to the timely and quick support of credit officers, she was able to borrow 1 billion VND in working capital to produce wooden furniture, consumed in markets across the country.
Thus, from the practice of Bac Ninh, it can be seen that capital syndication and digital transformation are two parallel pillars of the development strategy of the Vietnamese cooperative banking system. One side strengthens credit safety, the other side expands access to services and transparent governance.
But the biggest challenge is not the scale of capital, but the change in thinking towards "tightening connections and accompanying development", so that each People's Credit Fund is not only a grassroots credit institution, but also an "extended arm" of the Cooperative Bank, where capital flow, trust and community responsibility go hand in hand.
Source: https://nhandan.vn/dong-hanh-lan-toa-gia-tri-cong-dong-post919619.html
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