2:20:19 PM | 4/4/2016
In the past years, the State Bank of Vietnam (SBV) Bac Kan has always performed well the functions of state management and monetary operations of banks, credit institutions in the province. SBV Bac Kan has timely adjusted deposit rates and lending rates prescribed by the SBV from time to time; implemented comprehensive and effective solutions of capital mobilization, actively balanced between capital and using capital to ensure liquidity; created favourable conditions for customers to access bank loans with low interest rates; especially implementing synchronous solutions to remove difficulties for enterprises in production and trading.
According to Ms Phung Thi My - Director of SBV Bac Kan said that in 2015, the banking system in the province carried out flexible deposit rates and lending rates according to the direction of the Central Government. As of December 21st 2015, the whole system had mobilised VND4,264 billion capitals, up more than 17 percent compared to 2014 and increased by 159 percent compared to the end of 2010. Total loan until the end of 2015 in the whole system is VND6,769 billion, up 0.13 percent compared to the end of 2014, up 99.9 percent compared to the end of 2010. Of which: loans are VND5,589 billion, corporate bonds VND1,180 billion; Short-term loans VND1,764 billion; and medium and long term loans VND5,005 billion; outstanding loans for rural agriculture VND2,484 billion. The number of corporate customers is 291 with account outstanding of VND3,007 billion.
Besides the credit market in the province also faces difficulty in extending credit because most of the businesses in the province currently have account outstanding with banks. In recent years, due to the economic downturn, businesses in the province continue to face many difficulties such as lack of raw materials, increased transportation costs rise and large inventories. Enterprises are not really active in response to the fluctuations of the economy, lack effective business projects and lack transparency of financial capacity.
In this situation, the banking sector in the province has actively advised the provincial People's Committee on the measures to remove difficulties for enterprises. The focused measures include: Organize regular dialogue with businesses to overcome difficulties in production and business activities of enterprises and the banking system; Recommend to continue conference briefings quarterly with the chairmanship of the Permanent People's Committee, the participation of a number of departments and sectors concerned and the banking system, enterprises in the province; Coordinate with other offices of advisory solutions for industrial development, to solve the problem debts in capital construction, handling of problems related to the disposal of collateral, secured transactions registration; Pro-actively approach with clients to create favourable conditions for clients accessing credit to contribute to support businesses and people to maintain production and business development.
By proper development orientation, in terms of performance of Bac Kan banking system, in 2016, the whole banking sector set a target of deposit growth of 12-15 percent compared to the end of 2015; outstanding loans increased 12-14 percent compared to the end of 2015, based on actual happenings; bad debt below 3 percent of total loans. The system will remain stable banking activities and the implementation of sustainable solutions timely, implementation of monetary policy; innovate forms of capital mobilisation; keep along with socio-economic development programmes; actively balance between capital sources and use of funds; implementing credit expansion measures coupled with effectiveness; improve governance and administration; and focus disbursement targets for credit programmes.