Boosting Credit Growth

11:38:08 AM | 14/8/2019

Based on the direction of the State Bank of Vietnam (SBV) on credit activity and economic performance, the banking sector has effectively implemented monetary policies to improve the business and investment environment, improve competitiveness, and disseminate legal regulations to avoid risks in credit investment.

Mr. Bui Trung Thu, Director of the State Bank Vietnam - Yen Bai Province, said, in 2019, the banking sector has endeavored to increase credit by 14% or more and bring bad debt ratio to below 2% of total outstanding balance. To carry out that goal, the sector has strictly implemented Directive 01/CT-NHNN dated January 8, 2019 of the Governor of the State Bank of Vietnam on “carrying out of important tasks and solutions of the banking sector in 2019” and Directive 01/CT-UBND dated January 11, 2019 of the Chairman of the Provincial People’s Committee on “centralized direction of task implementation in 2019”, and strengthened measures to ensure credit for the Lunar New Year 2019. The sector has controlled credit quality and effective credit growth as per Directive 05/CT-NHNN dated June 17, 2018 of the SBV Governor on credit institution restructuring and bad debt treatment. Credit capital has been prioritized for manufacturing sectors and priority areas under Government’s regulations on strict control of credit for potentially risky areas.

On the other hand, the sector has focused on developing banking services, expanding noncash payment via banks under the direction of the government and the province (the Prime Minister’s Decision 4141/QD-TTg dated February 23, 2018, Plan 94/KH-UBND dated April 5, 2019 of the Provincial People's Committee on “Implementing the scheme on accelerated bank payment for public services: Tax, electricity, water, tuition, hospital fee, social security payment in Yen Bai province”).

In addition, the sector has strengthened the inspection and supervision of operations of bank branches and people's credit funds. The sector has timely monitored and made post-inspection corrections; and handled law violations. Besides, the branch has stepped up administrative reform, facilitated customers to access credit capital and banking services. Working with other sectors to repel and limit black credit and enhance the Provincial Competitiveness Index according to Resolution 02/NQ-CP dated January 1, 2019 of the Government is also an important task.

To enhance State management, avoid risks in credit investment and important local projects, the sector deployed and disseminated normative documents and directed bank branches and people’s credit funds to comply with legal provisions. It has regularly renewed working style, improved professional ethics of public employees in the banking industry, and informed banking activities to build social consensus on banking activity. With these solutions, the sector brought in positive results. The credit balance increased by 7% and bad debt accounted for 0.67% of total outstanding loans in the first five months. The banking sector well met lending demands and helped grow local socioeconomic development.
Hoai Nam