SBV Son La: Focusing on Helping Businesses Solve Capital Problems

As reported by the SBV Son La, as of 30 June 2014, the total mobilised capital of the entire banking system of Son La reached VND8,920 billion, an increase of 14.4 percent compared to 2013; the outstanding loans reached VND15,239 billion, an increase of 3.3 percent compared with 2013. It is expected that from now until the end of 2014, Son La has the ability of achieving growth of 12-14 percent. Bad debts are now VND106 billion, accounting for 0.69 percent of total loans.

 

According to Cam Van Huan, Director of SBV Son La, the market share of commercial banks accounts for the majority with 86 percent of raised capital and 78 percent of loans. At the same time, the role of the commercial banking system in the area is very important in the implementation of monetary policy and the maintenance and stabilisation of the development of the credit and banking services to meet the basic needs of socio-economic development, which contribute to economic restructuring, removing the difficulties of enterprises and gradually promoting the province's socio-economic growth. The banks in the province raised new funds, developed financing activities and diversified funding packages, assigning funding targets to officers and employees, expanding the network, improving service quality, and innovating customer care policies in order to attract idle cash from the public and economic organisations.

 

Besides, in recent years, SBV Son La has also directed the banks to focus on promoting fund raising to meet capital requirements and guarantee credit payment, adopting measures to expand credit to support economic growth at a reasonable level, contributing to inflation, and boosting production and business development. At the same time, the priorities aim to a number of areas such as agriculture and rural development, export, supporting industry, small and medium enterprises, key projects with high efficiency and focused on key areas of the economy. The SBV also continues to propose solutions to remove difficulties to improve the credit relationship with customers; for example, activities include restructuring repayment periods, reduction of interest rates on existing loans, and reduction or removal of interest rates.

 

Mr Cam Van Huan said that currently, SBV Son La is implementing two programmes to remove difficulties for business production, and assistance for the market to help businesses in the area have access to capital sources through connection between commercial banks and enterprises, Besides, another programme is to encourage the relevant authorities to make proposals to the Provincial People's Committee and the Ministry of Agriculture and Rural Development to approve the list of businesses in the area who are eligible for the pilot lending program for those in agriculture under Resolution 14 dated March 05 2014 of the Government.