Strengthen internal audit and supervision of people's credit fund activities
(Baonghean.vn) - That was the direction of Vice Chairman of the Provincial People's Committee Bui Thanh An at the conference to deploy the work of the People's Credit Fund in 2023.
On the morning of February 25, the State Bank of Nghe An province coordinated with the Cooperative Bank, Nghe An branch to organize a conference to deploy the work of the People's Credit Fund in 2023. Comrade Bui Thanh An - Member of the Standing Committee of the Provincial Party Committee, Vice Chairman of the Provincial People's Committee attended and gave a speech. Also attending were representatives of relevant departments, branches, the Cooperative Bank of Vietnam, the Deposit Insurance of North Central Vietnam, and the People's Credit Funds in the area.
Outstanding loans reached 8,212 billion VND
As of December 31, 2022, Nghe An province has 59People's credit fund(QTDND) was licensed by the State Bank of Vietnam, Nghe An Province Branch, to establish and operate in 16 districts, towns, and cities; of which 58/59 funds operate under the inter-commune, ward, and town model. The whole province has 153 communes, wards, and towns with People's Credit Funds operating.
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Overview of the conference. Photo: Quang An |
The total operating capital of the People's Credit Funds in the area is 9,466 billion VND, an average of 160.4 billion VND/fund. The total outstanding loans of the People's Credit Funds are 8,212 billion VND, an average outstanding loans of 139 billion VND/fund.The credit quality of the Basic Funds is guaranteed, the bad debt ratio is within the allowable limit.
Most of the People's Credit Funds in the area have deposits at the Cooperative Bank, with a total deposit balance of VND 959 billion, accounting for 10% of total assets, showing that the local capital mobilization of the People's Credit Funds in the area is relatively good. In addition to meeting the borrowing needs of members, there is a surplus to deposit at the Cooperative Bank, creating conditions for the Funds to be proactive in liquidity and demonstrating increasing prestige to members and people in the area.
People's credit funds in the business area all have profits, the total profit of the funds is 91,284 billion VND.
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10 People's Credit Funds with good achievements in implementing Digital Banking were rewarded. Photo: Quang An |
In Nghe An province, 14/59 Funds have signed contracts to act as remittance payment agents for credit institutions, approved by the State Bank of Vietnam, Nghe An Branch, to facilitate customers and diversify the Fund's operations. The amount of foreign currency payments in 2022 of 14 Funds reached 60,655 billion VND.
The inspection, examination and supervision of the People's Credit Fund system has always been of interest to the State Bank of Vietnam, Nghe An Province Branch, and is identified as a key task in the management of the State Bank. Through the inspection, existing problems and violations have been discovered, thereby assigning specific responsibilities to each organization and individual with violations after the inspection and requiring the Funds to seriously handle violations and periodically report to the Inspection and Supervision until completion.
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| Ms. Nguyen Thi Thu Thu - Director of the State Bank of Nghe An spoke at the conference. Photo: Quang An |
Focus on internal audit, timely detection and handling of abnormalities
Speaking at the conference, Vice Chairman of the Provincial People's Committee Bui Thanh An highly appreciated the results that the People's Credit Fund system in the area has achieved in 2022. In addition to contributing to supporting people and localities in developing agricultural and rural economy, the operation of the People's Credit Fund model in the area also contributes to increasing the local budget revenue. As of December 31, 2022, the total amount of money that the Funds have paid to the budget is 19,281 billion VND.VND. Currently, many Funds have much higher corporate income tax rates than small and medium enterprises. Notably, the Fund's activities also help create direct jobs for 1,006 local officials, proactively participating in new rural construction and social security in the area.
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Comrade Bui Thanh An - Member of the Provincial Party Standing Committee, Vice ChairmanThe Chairman of the Provincial People's Committee acknowledged the achievements of the People's Credit Funds in the area. Photo: Quang An |
In order to overcome the shortcomings, limitations and resolve difficulties in the operation of People's Credit Funds, the Vice Chairman of the Provincial People's Committee requested the State Bank of Nghe An province to continue to strengthen solutions to ensure operational safety, firmly consolidate the People's Credit Fund system; Direct People's Credit Funds in the area to develop a restructuring plan associated with bad debt handling, especially the implementation of solutions to improve financial capacity, credit quality, governance, operation, control, internal audit; promptly detect and adjust plans in accordance with reality.
Comrade Bui Thanh An also requested that people's credit funds strengthen professional and political and ideological training for staff, develop Party organizations and trade unions in the system. The State Bank should strengthen its management role, especially in inspection, supervision and examination to promptly detect and handle irregularities in the operations of people's credit funds.
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| Hung Dong People's Credit Fund - Vinh City has done a good job of mobilizing capital to promptly meet loan capital needs for members. Photo courtesy of BNA |
Departments and branches continue to support People's Credit Funds in debt collection, registration of secured transactions, completion of land lease dossiers for headquarters construction, coordination in investigation and adjudication of cases related to the People's Credit Fund system. Local authorities at district and commune levels proactively coordinate with the State Bank to strengthen supervision and management of People's Credit Funds, especially state management of cadres and personnel, promptly preventing violations.