Nghe An Banking Industry promptly meets the requirements of socio-economic development

(Baonghean) - That is the affirmation of Ms. Nguyen Thi Thu Thu - Director of the State Bank of Vietnam (SBV) Nghe An Branch when talking with reporters of Nghe An Newspaper.

PV:In 2017, the State Bank of Vietnam, Nghe An Branch, had many innovations in management and operation, especially in implementing well related mechanisms and policies. Could you tell us some specific tasks?

Ms. Nguyen Thi Thu Thu:With the timely and effective direction and management of the State Bank of Vietnam, Nghe An Branch, the attention and support of all levels and sectors, and the efforts of 100 credit institutions (CIs) and CI branches in the province, the banking sector has made important contributions to successfully completing its tasks and plans for 2017.

In the process of performing well the management function, the State Bank of Vietnam Nghe An Branch promptly and seriously implemented the policies, mechanisms and guidelines of the Government and the directions of the State Bank related to banking activities to credit institutions and branches of credit institutions in the area. Along with the provisions of the law in general and specifically for the banking sector, in 2017, the Branch implemented 7 Directives and 30 important Circulars of the State Bank of Vietnam on areas such as: bad debt, risk control, crime prevention, regulations on interest rates, etc.

State Bank of Vietnam, Nghe An Branch received the Emulation Flag for comprehensive excellence, leading the patriotic emulation movement, awarded by the Provincial People's Committee. Photo: Hoang Vinh

At the same time, the Branch has coordinated with relevant levels and sectors to both advise and ensure the implementation of mechanisms and policies in accordance with regulations. During the year, it advised the Provincial Party Standing Committee to issue Directive 10-CT/TU dated April 13, 2017 on strengthening the Party's leadership over banking activities in the area; advised the Provincial People's Committee to issue Directives, Decisions, Implementation Plans, and direct all levels and sectors to implement contents related to banking activities, restructuring of credit institutions, and handling bad debts, etc.

Signing the coordination regulations with the Provincial Police on ensuring security and safety of banking activities; continuing to effectively implement the coordination regulations with the Office of the Provincial National Assembly Delegation, the Provincial Fatherland Front Committee, the Provincial Party Committee's Mass Mobilization Committee, the Party Committee of the Enterprise Bloc, and the Civil Judgment Enforcement Department to enhance information exchange, promote the dissemination of policies and mechanisms, and effectively carry out the tasks of socio-economic development under the direction of the Provincial People's Committee.

Inspection, examination and supervision activities of credit institutions and credit institution branches are always serious and highly compliant, creating a healthy and fair competitive environment among credit institutions. In 2017, the State Bank of Vietnam, Nghe An Branch, conducted 72 inspections and examinations, including 34 inspections and 38 examinations at credit institutions, credit institution branches and economic organizations. Through inspections and examinations, 391 recommendations were proposed (including 137 recommendations related to treasury safety), many officials related to violations were handled and 4 decisions were issued to sanction administrative violations in the field of currency and banking activities.

PV:Recently, the monetary market has been quite stable, with outstanding credit growth rates... helping the banking sector promptly meet the socio-economic development needs of the province. How is that reflected in the performance of its duties, Madam?

Ms. Nguyen Thi Thu Thu:In 2017, Nghe An Banking sector continued to maintain positive growth momentum. As of December 31, 2017, total mobilized capital in the whole area was estimated at 107,628 billion VND, an increase of 15,034 billion VND compared to the beginning of the year, equivalent to 16.2%, ranking first among provinces in the North Central region, ranking 9th in the country in terms of capital mobilization market share.

Credit institutions and credit institution branches continue to closely follow the province's economic development programs and projects to effectively expand credit, shift credit structure towards focusing on lending capital for priority areas, while always focusing on improving credit quality, ensuring safety and efficiency... Thanks to that, in 2017, Nghe An's banking sector's credit ranked 3rd in the country (after Hanoi and Ho Chi Minh City). By December 31, 2017, total outstanding loans were estimated at 167,800 billion VND, up 15.6% compared to the beginning of the year, higher than the growth rate of the previous year (15.2%).

Outstanding in the credit structure in Nghe An are credit institutions and credit institution branches focusing on priority areas (investment in production, focusing on investment in agriculture, rural areas and export, small and medium enterprises), in which: Outstanding loans for agricultural and rural development are estimated at nearly VND 64,087 billion, up 12.4% compared to the beginning of the year. Outstanding loans for policy subjects through the Social Policy Bank are estimated at VND 7,125 billion, up 5.74% compared to the beginning of the year.

Export loans are estimated at 1,470 billion VND. Shipbuilding loans under Decree 67/2014/ND-CP are 105 ships, with outstanding loans of 750 billion VND. In addition to credit expansion, bad debt management is always of special concern to credit institutions and credit institution branches. As a result, in 2017, the bad debt ratio of Nghe An Banking sector was always at an acceptable level, much lower than the national average.

The banking sector also constantly improves the quality of payment, currency - treasury work, develops the banking service network, thereby improving the quality of the sector's operations, contributing to increasingly better meeting the capital needs for the province's socio-economic development.

PV:Can you tell us the solutions for the banking industry to complete its tasks in 2018?

Ms. Nguyen Thi Thu Thu:2018 is forecast to face many difficulties, but the banking industry is determined to complete its assigned tasks well and to achieve that goal, the industry strives to ensure that the banking system continues to operate stably and safely, complete business tasks, direct credit to production, business, priority areas and limit credit concentration in areas with potential risks and bad debts.

Continue to monitor the implementation of approved restructuring plans of credit institutions. Urge, direct and monitor credit institutions and credit institution branches to implement Resolution No. 42/2017/QH14 dated June 21, 2017 of the National Assembly, Directive 32/TTg dated July 19, 2017 of the Prime Minister on "piloting bad debt settlement of credit institutions", Directive 06/CT-NHNN dated July 20, 2017 of the State Bank of Vietnam.

Continue to direct credit institutions and credit institution branches in the area to implement the action plan of the banking sector to implement Resolution 19/2016/NQ-CP, Resolution 35/NQ-CP of the Government issued together with Decision 1355/QD-NHNN of the State Bank of Vietnam and the direction of the People's Committee of Nghe An province to contribute to improving the business environment, enhancing national competitiveness, and supporting business development.

Continue to implement administrative reforms, reduce procedures, shorten service time for people and businesses; diversify products and services, payment channels based on IT application to provide more choices and serve customers anytime, anywhere, including small and medium enterprises. The industry also strives to perform well the assigned tasks of managing the gold and foreign exchange markets, contributing to stabilizing the gold and foreign exchange markets. At the same time, strengthen the inspection, supervision and examination of the State Bank and internal inspection of credit institutions. Continue to perform well the social security work in the area...

Hoang Vinh

(Perform)