Contribute significantly to stabilizing the currency market

(Baonghean) - Nghe An is one of the localities with a fairly strong network of credit institutions (CIs) in the country. Currently, along with the State Bank of Vietnam - Nghe An Branch, there are 32 commercial banks (CIs), level 1 commercial bank branches (1 Joint Stock Commercial Bank Headquarters, 11 State Commercial Bank branches, 19 Joint Stock Commercial Bank branches) and 21 limited operating branches dependent on level 1 branches of the Bank for Agriculture and Rural Development - Nghe An Branch. There are 2 policy banks including: Social Policy Bank Branch and Development Bank Branch. 1 Cooperative Bank and 54 grassroots People's Credit Funds; 195 transaction offices; 191 ATM points and 145 POS of CIs. The development of the network of credit institutions is carried out in accordance with the regulations and authorization of the Governor of the State Bank, ensuring full conditions regarding staff, facilities, treasury safety, etc.

Nguyen Thi Thu Thu.

In 2013, implementing the direction of the Government and the Governor of the State Bank, the State Bank - Nghe An Branch has deployed documents related to currency and banking activities in the area. Thanks to the synchronous implementation of solutions to reduce interest rates, up to now the ceiling interest rate for VND mobilization is only at 7%/year (applied to terms under 6 months), the ceiling interest rate for loans for 5 priority sectors (rural agriculture, export, supporting industry, small and medium enterprises, high-tech enterprises) is 9%/year. The VND interest rate level in 2013 has decreased by 2-5%/year compared to the beginning of the year. In addition to reducing interest rates for new loans, credit institutions have considered adjusting interest rates for old loans for customers, up to now the total outstanding debt with interest rates above 15%/year accounts for 4.06% of the total outstanding debt; Outstanding loans with interest rates from 13-15%/year account for 16.07% of total outstanding loans; outstanding loans with interest rates from 10-13%/year account for 39.06% of total outstanding loans; outstanding loans under 10% account for 33.82% of total outstanding loans.

In credit work, the State Bank - Nghe An Branch continues to direct credit institutions to implement credit and interest rate solutions to remove difficulties for production and business, support the market and shift credit structure towards prioritizing lending in the fields of agriculture, rural areas, export, supporting industries, small and medium enterprises, and high-tech enterprises. Up to now, credit institutions have all implemented credit growth targets according to the direction of the State Bank of Vietnam and the targets assigned by the Head Office of Credit Institutions. Also during the past time, the State Bank - Nghe An Branch has worked with local authorities and enterprises to grasp and remove difficulties and obstacles between enterprises and banks. Effectively implement the Action Program to support small and medium enterprises in the period of 2012-2015; guide credit institutions to focus on lending to agriculture and rural areas according to the direction of the Government in Decree 41/2010/ND-CP.

Up to now, the total outstanding loans for rural agricultural development account for 32.5% of the total outstanding loans in the whole area, an increase of 59.2% compared to the beginning of the year. Along with that, coordinating with the Department of Construction to grasp the demand for social housing and social housing projects in the area to direct credit institutions to provide housing support loans according to Resolution 02/NQ-CP. Currently, in the province, there are 4 banks providing housing support loans according to Resolution 02/NQ-CP with outstanding loans reaching 4,031 million VND and 12 individual customers receiving loans. The outstanding loans are quite low compared to the needs of the people because the supply of housing that fully meets the prescribed standards for loans in the province is still limited, some projects have just been implemented such as the social housing project of Trung Viet Company Limited which just started construction in November, expected to be supplied to the market by 2014...

Transaction at State Bank - Nghe An Branch.

In recent times, in our province, the network of gold bar trading has developed. Currently, there are 29 locations of 8 credit institutions and 3 enterprises (the whole country has 2,500 locations) and licensed gold bar trading locations complying with regulations on publicly posting gold bar prices. After a period of gold bar trading through the new network licensed by the State Bank, gold bar trading activities in the market have been very stable, there are no more gold "fever" like in previous years, the legitimate rights of the people are guaranteed and protected.

One of the "prominent" issues in recent times is the handling of bad debt, and this issue has been regularly monitored by the State Bank of Vietnam - Nghe An Branch at credit institutions, and has issued warnings to credit institutions with high bad debt ratios. Through direct inspections, credit institutions have been required to classify debt and set up risk provisions in accordance with regulations, increasing the ability to withstand risks at credit institutions... With the active measures and efforts of the State Bank of Vietnam - Nghe An Branch and credit institutions, up to now, the total bad debt in the area is 1,230 billion VND, accounting for 1.3% of total outstanding debt, down 46% compared to the beginning of the year because 15 units have used provisions to handle risks with the total bad debt handled being 319 billion VND; 2 units have sold debt to VAMC with the total bad debt sold being 910 billion VND, and some units have recovered bad debt from borrowers. At the same time, the State Bank - Nghe An Branch has effectively restructured credit institutions, inspected and examined organizations with banking activities...

Regarding the provision of payment services, treasury, electronic clearing and settlement, electronic money transfer in the area, ensure safety, speed and accuracy. Estimated payment turnover through the State Bank in 2013 reached: 349,456 billion VND, up 9.3% compared to 2012. Well implement the management of deposit and loan accounts of commercial banks and the State Treasury. Well implement the daily actual balance of credit institutions in the area to the State Bank Transaction Office to check compulsory reserves. Timely handle surplus and shortage of compulsory reserves for credit institutions in accordance with the regime. Organize the timely and complete supply of cash with the structure of all types of money for circulation, well implement the regulation of currency circulation in the area. In 2013, the volume of cash received and spent through the banking system was quite large. Total cash receipts through the State Bank's operational fund are estimated at 33,000 billion VND, an increase of 15.7% compared to 2012. Total cash disbursements through the State Bank's operational fund are estimated at 26,500 billion VND, a surplus of 6,500 billion VND. Total remittances in the year increased by 7% compared to 2012.

In 2013, with the efforts of credit institutions in the area, capital mobilization achieved good results. By December 31, 2013, the mobilized capital in the area was estimated at 56,505 billion VND, an increase of 28% compared to the beginning of the year. Lending work was also performed well by credit institutions, by December 31, 2013 the total outstanding debt of credit institutions in the area was estimated at 94,950 billion VND, an increase of 22.8% compared to the beginning of the year, of which: the loan turnover to support import and export reached 4,852 billion VND, an increase of 1.4% compared to 2012, accounting for 67% of the total import and export turnover of goods of the province (payment through the banking system).

State Bank - Nghe An Branch received the Second Class Labor Medal.

With remarkable results in 2013, it is a solid foundation for the State Bank - Nghe An Branch to strive to perform well its tasks in 2014. Clearly identifying that in the coming time, the banking industry will face many difficulties, the State Bank - Nghe An Branch closely follows the general direction and management of the industry and the province, the action program to implement the resolution of the 17th Provincial Party Congress and the resolutions on economic development to direct credit institutions to increase capital mobilization and expand credit investment in a safe, effective and sustainable manner. Credit institutions focus on lending capital for production and business costs of the agricultural and rural areas, exports, small and medium enterprises, key projects of the province, lending to poor households and other policy subjects in accordance with the provisions of law.

Strive to achieve a 28% growth rate in mobilized capital in the area in 2014; credit investment growth rate of about 22%. Bad debt is under 5% of total outstanding debt. Focus on directing credit institutions to operate within the legal framework, compete fairly, have high consensus in banking activities in the area, create stability for the monetary market and focus on developing the network in agricultural and rural areas. In the coming time, the State Bank - Nghe An Branch will expand and upgrade the information technology infrastructure at the State Bank and credit institutions (communication lines, server systems, personal computers, ATMs...) to meet the needs of payment, money transfer quickly, conveniently, safely and accurately serving socio-economic activities in the area. Continue to expand and diversify modern banking products and services, meeting customers' needs in the process of competition, integration as well as developing Vinh City to become the socio-economic center of the North Central region.

IT