SBV Bac Kan Actively Accompanying the Business Community

5:47:32 PM | 26/11/2013

As a monetary and banking credit management agency in Bac Kan province, the State Bank of Vietnam - Bac Kan Branch (SBV Bac Kan) has actively operated and greatly contributed to the provincial socio-economic development and the banking sector in the past time. Knowing that economic downturn has wrecked the operations of local enterprises in recent years, SBV Bac Kan has launched many support credit programmes in an effort to help local businesses to deal with difficulties.
Sticking to the guidance of the State Bank of Vietnam, SBV Bac Kan defined key tasks for 2013: Promoting credit growth and creating favourable conditions for borrowers to access low interest bank loans. At the same time, the branch has strongly and consistently deployed solutions to support customers to cope with difficulties and settle bad debts in order to raise the credit quality of the banking system in Bac Kan province.
Since the start of the year, the branch has focused on attracting and utilising all sources of capital, especially unemployed capital of citizens, in a bid to balance funds for businesses. As of the end of September 2013, the banking system in the province mobilised VND2,653,546 billion. This is a huge effort in the current context of weakening credit demand weighed by slowing business operations.
Ms Phung Thi My, Director of SBV Bac Kan, said Bac Kan is one of the poorest provinces in the country, with particularly low per capita income. As a result, deposit mobilisation and credit lending is a very difficult job. Currently, capital mobilisation at the district level is not high. Moreover, the number of enterprises in Bac Kan province is low and most are small and medium-sized. Thus, the fund raised from citizens outweighed business organisations recently. This partly reflects difficulties against local enterprises.
So far, banks in the province have deployed many business support programmes. Typically, the Vietnam Bank for Agriculture and Rural Development (Agribank) - Bac Kan Branch pioneered lower interest rates to widen credit accessibility for enterprises.
However, due to many factors, especially the weakening capital absorption of enterprises, the demand for credit is low. Many companies fail to repay their overdue debts and are thus disqualified for new loans. Meanwhile, with weak financial capacity and heavy reliance on external credits for business operations, when their sales are slow, their demand for credit is low as a result.
Beside business support measure packages, SBV Bac Kan has also implemented many credit programmes and policies as directed by the Government and the Prime Minister for customers, focusing on increasing market share for small and medium businesses and personal customers. The branch has also deployed five lending programmes provided by the State Bank of Vietnam for corporate customers and individual customers. In addition, the branch has guided local lenders to focus on seeking new and potential customers.
With right development orientations together with relentless efforts of the entire banking system in general and SBV Bac Kan in particular, the branch has effectively regulated invaluable financial support for the economy, capital mobilisation and circulation for local development.
Lam Anh