Expanding the banking network

The banking system has expanded.

Over the years, Dak Nong has attracted many credit institutions to operate. Expanding the network of credit institutions not only meets the demand for loans but also plays a crucial role in promoting local economic development. This creates favorable conditions for businesses to access capital and enhance their competitiveness.

Investment and Development Bank ( BIDV ) Dak Nong Branch

Currently, there are 17 credit institutions operating in Dak Nong. These include 8 branches and 43 transaction offices. The credit system in Dak Nong is improving, with the presence of major commercial banks such as Agribank , BIDV, VietinBank, and Vietcombank.

Recently, Dak Nong has become a preferred location for many small-scale credit institutions such as Ban Viet Bank, MBBank, VPBank, OCBBank, etc. In December 2024, Bac A Commercial Joint Stock Bank will officially commence operations.

The banking system is vibrant, with the participation of numerous commercial banks, credit unions, and finance companies. Increasing competition among these institutions forces each bank to innovate, diversify its financial products and services, and improve its service style.

Credit products are not limited to traditional loans but have expanded to include products such as: unsecured business loans, short-term loans, working capital loans, overdrafts, etc.

Many credit institutions have developed flexible loan packages with preferential interest rates. Their loan application processes are streamlined and expedited to attract customers.

This gives businesses in Dak Nong more options when seeking funding and makes it easier to access loans.

Orient Commercial Bank (OCB) Dak Nong Branch

Mr. Le Minh Thanh, Director of Viet Toan One-Member Limited Company in Dak R'lap district (Dak Nong province), said that in the past, borrowing money from banks was very difficult. The application process took a considerable amount of time. Now, things are different.

“At times, 3-4 banks would call the business to check if it needed production loans. Businesses have the right to inquire about procedures, interest rates, and loan terms. From there, we can choose a more reliable and favorable source to borrow from,” Mr. Thanh said.

From the perspective of a credit institution, the leaders of the Agricultural Bank of Vietnam (Agribank) Dak Nong Branch see the operation of credit institutions not necessarily as a challenge, but rather as a driving force.

"This motivates our branch and staff to improve our products and services, service style, and become more customer-oriented," shared the leader of Agribank Dak Nong Branch.

To help banks find customers, the State Bank of Vietnam in Dak Nong province organized a program to connect banks and businesses.

Many credit institutions organize credit advisory seminars to facilitate networking and information exchange, helping businesses better understand suitable financial products and services.

Banks also focus on understanding the needs and difficulties of businesses during the loan process, thereby improving their products and services to better meet those needs.

Credit officers from OCB Bank, Dak Nong Branch, introduce and explain loan options for businesses and households in Dak R'lấp district (Dak Nong).

Credit institutions have introduced more attractive interest rate policies to attract customers. Currently, many banks have launched preferential loan packages with interest rates reduced by 0.5 - 1.5% per year compared to normal rates, especially for businesses.

Credit institutions are actively applying digital technology to financial services, deploying e-banking services, enabling customers to easily access and use financial services anytime, anywhere.

Continue to attract credit institutions.

Although Dak Nong has attracted more credit institutions to operate compared to previous years, its credit network is still relatively limited in scale and scope compared to the actual needs of the locality and neighboring provinces.

This creates certain difficulties for businesses in accessing financial services, especially in remote and rural areas.

Customers conducting transactions at Military Bank (MB Bank) Dak Nong Branch

According to the Director of the State Bank of Vietnam branch in Dak Nong province, in recent times, the central and local branches of the State Bank of Vietnam have created favorable conditions to support and encourage the development of credit institutions.

Previously, to open new branches or transaction offices, banks had to meet many strict criteria regarding charter capital, risk management capabilities, and business performance.

Recently, the State Bank of Vietnam has adjusted this regulation to reduce the minimum capital requirement and simplify the licensing procedures.

This makes it easier for credit institutions to expand their operations and meet the financial needs of remote and rural areas where access to financial services is limited.

Customers conducting transactions at VPBank Dak Nong Branch.

“As the number of branches and transaction offices increases, businesses in rural and remote areas will have more opportunities to access financial services. This will help businesses easily borrow capital to invest and expand production and business, contributing to economic growth,” emphasized Mr. Pham Thanh Tinh, Director of the State Bank of Vietnam branch in Dak Nong province.

Expanding the credit network offers many benefits, but certain issues remain. In particular, managing credit risk is crucial when expanding operations to new areas.

Assessing the debt repayment capacity of customers in remote and rural areas remains challenging due to a lack of financial information.

To address this issue, the State Bank of Vietnam needs to strengthen its supervision and risk management, and require credit institutions to enhance their credit assessment capabilities.

Strengthening cooperation between credit institutions and local authorities is also an effective solution to understand the actual needs of the people, thereby developing appropriate financial products.

Vietnam Prosperity Commercial Bank (VP Bank) Dak Nong Branch commenced operations in early October 2024.

According to Mr. Tinh, in order to attract and facilitate the smooth operation of credit institutions, local authorities need to implement various support measures and create a favorable business environment.

Local authorities should facilitate the operations of bank and credit institution branches by minimizing unnecessary administrative procedures.

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Dak Nong needs to create a special mechanism to handle administrative procedures related to business registration, construction permits, and other relevant documents for credit institutions when they begin operations.

Mr. Pham Thanh Tinh, Director of the State Bank of Vietnam branch in Dak Nong province.

Source: https://baodaknong.vn/mo-rong-mang-luoi-ngan-hang-doanh-nghiep-them-co-hoi-234946.html