This role is not only demonstrated through capital regulation but also through support in technology, governance and strategic orientation, key factors for the People's Credit Fund system to adapt in the new context.
Capital regulation
According to the latest data from Co-opBank Ninh Binh branch, outstanding loans to the People's Credit Fund system currently account for only 1% of the branch's total outstanding loans in the first 6 months of 2025, equivalent to VND 16.4 billion, down VND 5.5 billion compared to the beginning of the year. Meanwhile, the total capital source sent to the branch by the People's Credit Funds is up to VND 1,406.5 billion, accounting for 84% of the branch's total resources.
These figures show that the role of Co-opBank as a financial sponsor is no longer the only criterion to evaluate the value of support for the People's Credit Fund system. Instead, there are emerging surplus values such as the role of leading digital transformation, management capacity, organization of syndicated financial products and strategic orientation.
A typical example is Khanh Phu Credit Fund (Dong Hoa Lu Ward, Ninh Binh Province), which has been established and developed to date and has always relied on capital regulation support from Co-opBank, formerly the Central People's Credit Fund. At one point, Co-opBank's support capital accounted for more than 20% of the Fund's total capital. However, up to this point, the Fund has not only ensured enough capital for members to borrow for economic development but also has a surplus of 50 billion VND deposited at Co-opBank, Ninh Binh branch.
Director of Khanh Phu People's Credit Fund Le Huu Hanh shared: Although the Fund has proactively managed its capital sources, it always appreciates the indispensable role of Co-opBank in regulating capital for the system, not only in lending but also in receiving deposits, helping the Funds reduce capital costs, thereby creating conditions to apply the best interest rates for members.
Meanwhile, with Ninh Giang Credit Fund ( Tay Ninh Giang Ward, Ninh Binh Province), Chairman of the Board of Directors Hoang Van Quyen also said: Up to now, the total mobilized capital of the Fund is about 55 billion VND, outstanding loans reach 50 billion VND. The Fund has a surplus and deposits at Co-opBank Ninh Binh branch of nearly 5 billion VND.
Although the Fund does not currently have to borrow from Co-opBank to provide capital for its members, support from Co-opBank is still extremely necessary for the Fund's operations, especially in digital transformation. The Fund has registered to open a bank account through Co-opBank's CF-EBANK system and issued ATM cards to customers. The Fund is equipped with a POS machine to serve customers to transfer and withdraw money quickly and conveniently.
Creating a foundation for sustainable development
In addition to being a capital fulcrum and accompanying digital funds in their operations, Co-opBank also supports the People's Credit Fund system by helping them change their management mindset, standardize operations, strengthen governance and gradually adapt to the revised Law on Credit Institutions.
Director of Co-opBank, Ninh Binh branch Nguyen Van Hieu said that the gradual change in thinking can start from very simple things, specifically here is the story of cash transactions. Previously, when funds had excess money, they would bring it to Co-opBank to deposit, and when they lacked money, they would come to borrow, causing the branch to be passive, or have too much cash, having to transact with the State Bank many times a day. Up to now, by creating a habit for the Funds to proactively notify in advance the need to deposit and withdraw money, the branch has been able to proactively balance capital sources, ensuring that when the Funds arrive, they will have money immediately, without having to wait for the branch to withdraw money from the State Bank.
Currently, Ninh Binh province has 38 People's Credit Funds operating with uneven scales, some with outstanding loans of 50 billion VND but others with outstanding loans of up to 180 billion VND. Some units have large mobilized capital but cannot increase outstanding loans due to product limitations and credit regulations. Faced with this reality, Co-opBank has proactively consulted and implemented a syndicated loan product - allowing many People's Credit Funds to cooperate to lend beyond the limit while still ensuring compliance with the law.
The revised Law on Credit Institutions stipulates a gradual tightening of credit limits. Accordingly, the total outstanding credit balance for a customer and related groups will gradually decrease: Before January 1, 2026, it will be 14% and 23% of equity capital; by January 1, 2029, it will be reduced to 10% and 15%. That means, if the charter capital is not increased, People's Credit Funds will not be able to serve large customers. Therefore, for many People's Credit Funds that cannot increase their charter capital in the short term, syndication is a feasible solution to "retain" customers with large loan needs.
According to Director of Co-opBank Ninh Binh branch Nguyen Van Hieu, Co-opBank has come to consult directly with each cluster of People's Credit Funds, affirming that the syndicated capital product is not for Co-opBank to "win customers" of the fund, but to support in difficult times, many credit institutions have to compete fiercely. After 6 months of implementation, although the syndicated loan balance has only reached 17 billion VND with 5 People's Credit Funds participating, the model has proven effective in retaining customers and expanding safe loan balance.
Not only providing product support, Co-opBank also provides strategic advice to People's Credit Funds in capital management, avoiding being "sucked" into the interest rate race of commercial banks, while encouraging flexible lending according to actual needs (instead of only lending for 12 months as before, lending for 3, 6, 9 months, etc.), restructuring appropriate mobilization terms. Thanks to that, outstanding loans of the entire People's Credit Fund system in the area have recovered, achieving a growth rate of 10.34% in the first 6 months of the year, equivalent to 13,432 billion VND.
In particular, Co-opBank Ninh Binh branch also oriented the Funds to increase propaganda through local newspapers and radio stations, encouraging the establishment of investment funds for technology and infrastructure instead of focusing only on distributing profits. At the same time, the policy of "rejuvenating the technology operation team" is also strongly promoted to prepare the next generation to be able to catch up with the trend.
“We do not see ourselves as a place to simply receive deposits or make loans. Co-opBank’s larger role is to strategically accompany the People’s Credit Fund system in improving capacity, adapting to digital transformation and increasing internal governance,” said branch director Nguyen Van Hieu.
That mindset is clearly shown in the way the Branch assigns staff to regions, closely monitors the situation of each People's Credit Fund, and closely coordinates with the State Bank's Regional Branches in inspection, supervision and support work. From seemingly small stories such as announcing plans to withdraw and deposit cash to organizing seminars, professional training, or coordinating with the STEP Project to improve staff capacity, ... all are part of an overall strategy for sustainable development.
Under increasing competitive pressure from commercial banks, even in remote areas, if not supported in a timely and appropriate manner, many People's Credit Funds will easily fall behind. With proactiveness and practical understanding, Co-opBank, Ninh Binh branch is striving to create a supportive ecosystem, not just simply providing financial services.
With a leading role not only in capital but also in technology, people and strategy, Co-opBank, Ninh Binh branch is reshaping the role of the Cooperative Bank in the new context: from a "big brother" playing the traditional role of capital regulation to becoming a trusted companion of the People's Credit Fund system in innovation, adaptation and development.
Source: https://nhandan.vn/mach-ngam-giu-he-thong-quy-tin-dung-hoat-dong-an-toan-post896103.html
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