SBV Cao Bang: Positive Outcomes of Capital Mobilisation

10:43:11 PM | 13/11/2013

Located in a mountainous province struggling with a lot of economic difficulties, the State Bank of Vietnam (SBV) Cao Bang Branch has made its best efforts to stabilize and develop the socio-economy to help Cao Bang to keep pace with the rapid economic growth of other provinces.
Maintain stability and develop credit
As reported by the SBV Cao Bang branch, since the beginning of the year, the branch has facilitated a stable supply of cash to guarantee the vault safety. Up to 9/30/2013, the total mobilized capital of the banking system in the province reached VND8,570 billion, up 9 percent compared with a year earlier. In particular, the total mobilized capital from the commercial banks has reached VND6,500 billion, increasing by 28 percent and the capital from the policy banks has reached VND2,070 billion, up 18.3 percent. Total loans of VND6,118 billion, up 5 percent from the previous year and the non-performing loan ratio has been 2 percent, up 1.2 percent from the previous year.
The local bank has focused resources to invest proactively and support entities and businesses, and other economic organizations to expand production and innovate the line of machinery, equipment and technology, as well as reduce the costs and improve competitiveness. The banks regularly adjust their interest rates and guarantee the loans as regulated. Up to now, the local bank has adjusted their interest rates below 15 percent per year. The inspection, monitoring, and internal controls have been reinforced. Due to the stable credit maintenance and growth, the credit and banking services have met the basic needs of socio-economic development, contributing to economic restructuring, removing difficulties for businesses and step by step boosting the socio-economic development of the province. The banks in the province have kicked off funding activities successfully, implementing some funding programs such as the diversification of the funding packages, assigning the funding targets to the officers and employees, expanding the network, improving the service quality, innovating the customer care policies in order to attract idle cash in the population, and economic organization. With the slogan "Growth - Safety - Effectiveness", the banks always keep close eyes on some activities related to the lending process, evaluation and monitoring, classification of customers, and assessment of the credit quality to timely respond to the capital requirements for development of socio-economic localities.
Share the burdens with businesses
Under the direction and guidelines of the State Bank of Vietnam, the SBV Cao Bang branch has comprehensively and drastically implemented many measures to remove difficulties for borrowers and facilitate enterprises to effectively access bank loans. Specifically, the SBV Cao Bang branch announced specific policies to local banks to share the burdens with enterprises and help them to overcome difficulties. A list of policies consists of reduced interest rates, support for consumers to foster purchasing power, measures to reduce the inventories of the businesses through the targeted credit programs with the preferential interest rates. By the end of June 2013, the short-term VND interest rates have been reduced to 9 percent per year and aimed at borrowers in some areas such as agriculture and rural development, exports, supporting industries, small and medium enterprises, and high-tech enterprises. Accordingly, many customers could overcome the difficult period and gradually stabilize their production and business development.
On the other hand, the SBV Cao Bang Branch and other banks have reached a consensus that the banks will undertake competitive pricing policies; accordingly, there are specific incentives for each group of customers, based on the credit rating. The customers who have high credit rating and good collateral history will receive the preferential interest rate. Currently, the province has more than 440 cooperatives and enterprises to access loans from the banks for businesses and a debt of VND2,722 billion, accounting for 66.7 percent of the outstanding loans of the commercial banks.
From now until the end of the year, the SBV Cao Bang branch will continue directing local banks to adopt solutions to solve difficulties for businesses and assist businesses to access markets, as well as implement other measures such as capital mobilization and provision of loans to all the economic sectors, particularly in the sectors of agriculture and rural development, export, supporting industries, and small and medium enterprises.