The people's credit fund system contributes to the economic development of rural areas.

Along with expanding lending activities, the issue of controlling loans, ensuring loans for the right purposes, to the right subjects and effectively is focused on by the People's Credit Funds to ensure credit quality. The bad debt ratio of the People's Credit Funds in the province compared to the total outstanding debt of the People's Credit Funds system is always maintained at a low level, within safe limits. The development of People's Credit Funds not only provides local capital for economic development, creating convenience for depositors and borrowers, but also clearly demonstrates the humanity of the type of monetary cooperative in poverty reduction, especially reducing the situation of usury and other forms of distortion, contributing to ensuring social order in rural areas. To achieve this result, in addition to the drastic direction of the State Bank, the People's Credit Funds are always aware of the important role of credit quality control, thereby proactively and tightly controlling loans. At the same time, the People's Armed Forces have promoted the advantages of being close to the people, understanding the people, and having quick and simple procedures.

A typical example is QTDND Chuyen Ngoai (Duy Tien), up to this point the outstanding debt is estimated at more than 230 billion VND. The fund's capital is mainly invested in developing livestock, cultivation, cage fish farming, and commercial services, contributing to promoting the local socio-economic development. According to the assessment of many members of the fund, if compared to bank interest rates, QTDND's interest rates are sometimes higher, but for many customers, accessing QTDND's capital is very convenient, the loan procedures are not cumbersome, members do not have to pay any other fees and do not have to go far like borrowing from a bank. For reputable members who regularly use QTDND's capital, borrowing is even more convenient, in just a short time, about 1-2 hours, they can borrow capital for business investment.

Credit officers of Tien Tan People's Credit Fund (Phu Ly City) review capital sources to meet members' loan needs.

Mr. Nguyen Van Chung, Chairman of the Board of Directors of QTDND Chuyen Ngoai said: During the operation, the staff working in credit at QTDND have the opportunity to be close to each household in the commune and village, clearly understand the investment in production and business, the reputation of each customer to decide on loans. On that basis, there are conditions to appraise the project, through directly checking the documents, assessing the reality and grasping information in the area. Thanks to this method, in the past time, in addition to disbursing capital from the fund, the unit has also cooperated with the Cooperative Bank (Co-opBank), Ha Nam Province Branch to disburse capital to customers. Through this, customers who have the conditions to borrow large amounts of capital can go to the credit fund, instead of having to go to a number of commercial banks.

In the coming time, QTDND Chuyen Ngoai will proactively adjust its business strategy and plan in accordance with market developments and socio-economic development conditions in the area; focus on improving financial capacity, management and control; improve credit quality, prevent risks; strictly comply with regulations on safety in operations, regulations on debt classification, provisioning and use of reserves to handle risks in banking activities, strive to complete the credit growth plan and control credit quality well.

According to the synthesis of the functional sector, up to now, the whole province has 12 People's Credit Funds operating with a mobilized capital of more than 2,000 billion VND, disbursed about 1,600 billion VND, lending to more than 3,200 members. Despite many difficulties due to the economic recession, in recent times, the operation of the People's Credit Fund system has gradually affirmed its role and position as an effective type of credit institution; promoting its advantages in mobilizing idle capital from the population for lending, supporting the community for sustainable development. In order to support the People's Credit Funds to operate effectively, in recent times, the Cooperative Bank (Co-opBank), Ha Nam Provincial Branch has regularly followed the activities of the People's Credit Funds in the province, performing the task of supporting, regulating capital sources, syndicating loans, meeting the needs of customers.

Mr. Bui Dinh Thanh, Acting Director of the Cooperative Bank (Co-opBank), Ha Nam Branch, said: In the past time, the branch has coordinated with the People's Credit Funds to maximize the advantages in the activities of the People's Credit Funds to improve access to capital and financial services for members, contributing to economic development, limiting the situation of usury, contributing to ensuring social security. In particular, the branch focuses on supporting the People's Credit Funds to train and improve the professional qualifications of staff, support digital transformation and implementation of banking services, warning and preventing risks and violations, with the goal of ensuring that the People's Credit Funds system operates in accordance with its principles, purposes, and regulations of law. At the same time, the unit also encourages the People's Credit Funds to build agents for Co-op Bank such as attracting customers to open personal accounts, transfer money and perform other services.

To improve the operational efficiency of the People's Credit Funds, the State Bank Branch, Region 7 has directed the People's Credit Funds to: promote the application of information technology to meet the requirements of administration, financial management, accounting, bookkeeping and reporting regimes according to the provisions of law; diversify products and services, maximize the advantages in the operations of the People's Credit Funds to improve access to capital and financial services for members; departments to improve the quality of inspection and supervision of the People's Credit Funds system to rectify, promptly warn, prevent risks and violations, and strictly handle them according to regulations, with the goal of improving the operational efficiency of the People's Credit Funds.

Tran Thoan

Source: https://baohanam.com.vn/kinh-te/tai-chinh-ngan-hang/he-thong-quy-tin-dung-nhan-dan-gop-phan-phat-trien-kinh-te-khu-vuc-nong-thonaaa-160708.html