Kien Giang Banking System: Positive Support for Provincial Socio-economic Development

In 2012, despite the downturn of the world and domestic economies posing challenges to the banking system, high inflation rates and macroeconomic instability, the banking industry of Kien Giang, along with other provinces' banking systems, has tightened monetary policy drastically and proposed prudent but flexible solutions to regulate the currency and credit markets. This helps solve the problems in business production and commercial activities in the area while maintaining the moderate growth of banking operations.

 

In recent years, the banking industry of Kien Giang has proved its good performance with high growth rates, high capital mobilisation at the local areas, and higher proportion of total operating capital, in which the deposits are shifted towards a positive direction and increased in the proportion of medium and long-term deposits denominated in VND. By December 31st, total capital of the Kien Giang banking system reached VND35,875 billion, up 17.05 percent over the previous year, and local deposits reached VND18,889 billion, up 26.82 percent, accounting for 52.65 percent of total operating capital, in which medium and long-term deposits increased by 167 percent and the VND deposits increased by 32.6 percent, compared to 2011.

 

In recent years, monetary policy and credit solutions of Kien Giang banking system have been effectively implemented, ensuring the credit needs of socio-economic development of the province. The lending loans are focused on business operations, exports, agriculture and rural development and small and medium enterprises (SMEs). Credit quality of the banking system is also under control; the credit solutions to remove difficulties for business operations and market supporting services have been implemented straightly and effectively. At the same time, the credit performance of social policies and activities of local financial institutions remains stable.

 

Particularly, to help the businesses who are not absorbing capital, despite the fact that the deposit rates have fallen, the State Bank Vietnam (SBV) in Kien Giang is directing the financial institutions to continue credit and interest rate solutions to remove the difficulties for the economic sector and promote the implementation of credit programs for agricultural and rural development, livestock, catfish and shrimp processing, food storage and preferential housing loans for low-income people.

 

In 2013, the SBV Kien Giang will continue to give lending priority to the agriculture sector, rural development, exports, SMEs and remove difficulties for business operations, market support, procurement of equipment and machinery to minimize post-harvest losses, mechanisation of agriculture and investment in new rural areas. The Kien Giang banking system has also directed the local social policy bank to coordinate closely with local authorities to implement the project of improving quality of social credit in the local area.