On April 9, 2019 in Hanoi, the State Bank of Vietnam (SBV) held a meeting with several socio-political organizations to assess the coordination results between the banking sector and the socio-political organizations in implementing the credit extension solutions, contributing to limiting black credit, and discussing the coordination orientations in the coming time. The meeting was chaired by SBV Deputy Governor Dao Minh Tu.
Also attending the meeting were representatives of the SBV entities, the credit institutions and the socio-political organizations such as Vietnam Farmers' Union (VNFU), Vietnam Women's Union (VWU), Vietnam War Veterans' Association, Vietnam Fatherland Front, Ho Chi Minh Communist Youth Union, Vietnam General Confederation of Labour, etc.
Overview of the meeting
Recently, in order to improve accessibility to capital for production and business, and to meet the consumption needs of the people, especially the poor/low-income people in the rural areas, the SBV, within its powers and jurisdiction, has issued many positive policies and solutions.
Specifically, the SBV has issued a system of legal documents on lending activities of the credit institutions and foreign bank branches in accordance with the practical situations, such as Decree No.41/2010/ ND-CP dated April 12, 2010, followed by Decree No.55/2015/ND-CP dated June 9, 2015, and most recently Decree No.116/2018/ND-CP on September 7, 2018 amending and supplementing Decree No.55/2015/ND-CP on the credit policy for agricultural and rural development with many breakthrough incentives.
Besides, the SBV has also implemented many credit programs, such as the interest rate support loans to accelerate the mechanization and to reduce losses in agriculture; lendings to encourage the development of hi-tech agriculture, clean agriculture; loans for housing support; lendings to policy credit programs at Vietnam Bank for Social Policies, etc.
At the same time, the SBV has also instructed the credit institutions to accelerate the administrative reforms, simplify the procedures for borrowing, publicize and provide full guidance to potential borrowers, diversify credit products which are suitable to production and consumption activities of the people.
With the above positive solutions, the banking sector has basically met promptly the capital needs for production and business, and the legitimate needs of the people. By March 27, 2019, the credit outstanding to the economy reached VND 7,390,000 billion, up by 2.5% as compared to the end of 2018, of which loans for agricultural and rural development reached VND 1,820,000 billion, up by 2% in comparison with the end of 2018.
Moreover, over the past time, the commercial banks, including Agribank, VBSP, have cooperated closely with the socio-political organizations in the communication on the orientations, credit policies and programs to support agricultural and rural development to all corners and regions of the country, helping it to become an effective channel of capital sourcing and management, and helping farmers to gradually reduce poverty and improve their living standards.
The fact that the credit institutions are providing loans through the borrowers’ groups, savers’ groups managed by the socio-political organizations has helped to save costs for the credit institutions in managing the loans, supporting the credit institutions in their assessment and evaluation of borrowers, as well as in debt recovery, especially in areas where the population is not concentrated, with difficult traffic conditions and limited communication facilities.
In the coming time, the banking sector will continue to coordinate with the socio-political organizations to drastically implement the solutions to enhance credit investment effectively and efficiently in order to support the agricultural production in the rural areas, accelerate loan provisions for the living needs and legitimate consumption of the people, contributing to limiting black credit; use diversified communication means to help people understand the risks and hazards of black credit; introduce formal channels of providing capital, banking products and services, contributing to prevent and deter black credit.
Le Hang