The banking industry makes effort to remove difficulties

Facing the severe impact of the Covid-19 pandemic, the banking system in the province has not only shared difficulties with businesses and people but also proposed themselves solutions to solve difficulties and strive for good growth in 2020.

Staff of BIDV Bank - Binh Duong branch give advice about loans to customers.

Solutions

Over three months, the unpredictable developments of the Covid-19 pandemic impacted many socio-economic areas, particularly prices, input materials as well as output products. The production and business activities of the people and enterprises in the province faced many difficulties.

Provincial People's Committee, provincial State Bank of Vietnam (SBV) branch, credit institutions proactively learned about these difficulties, the level of damage to ave solutions supporting customers according to the Prime Minister's directive, while increasing non-cash payment services, enhancing promotion and development of  online banking products, contributing to minimizing the risk of epidemic spreading. At the same time, strengthening online activities in currency trading, credit, cutting unnecessary procedures to restrict customers' direct contact at bank offices...

Lam Phuc Hung, Director of Sai Gon-Hanoi Commercial Joint Stock Bank (SHB)-Binh Duong Branch, said in an effort to limit the negative impact to the bank itself and to save itself, the bank's senior officials voluntarily reduced their salary until the end of the epidemic. Within its system, from the deputy-head level upwards and equivalent titles also voluntarily reduce by about 30% income. In addition, this bank also seriously checked again all operating expenses and implemented measures to reduce costs by at least 10%. According to Mr. Hung, cost reduction to lessen difficulties is a necessary immediate and long-term solution of the bank.

Saigon Commercial Bank () also implements the same solution. A SCB representative said the occurrence of the Covid-19 had changed plans, not only of industries and trades in the economy but also of the whole banking system - the backbone of the national economy. The largest shock could cause difficulties related to falling profits, increasing bad debts, and this is the biggest concern. “Before helping others, we need to survive first. Therefore, we have instructed our units to maximally practice thrift to ensure financial health so that when the epidemic passes, the bank could quickly resume operations and strive for the next development goals”, said the bank leader.

According to Tran Ngoc Linh, Director of BIDV - Binh Duong branch, the pandemic is also an opportunity for the leadership to rethink its policy to cope with risks and adjust or rebuild scenarios, solutions more effectively. “Accordingly, we have taken advantage of this opportunity to develop new markets, products and distribution channels. In particular, paying attention to the development of specialized short-term and long-term credit products to support small and medium-sized enterprises such as financing inventory, fast export support loans. In addition, we enhance the development of Internet banking and mobile banking payment in order to maximize business goals in the unfavorable economic context", said Mr. Linh.

To achieve growth goals

With many specific solutions, over the first 4 months of 2020, although the banking industry faced many difficulties due to the Covid-19 pandemic, operational indicators increased well. According to statistics of SBV - Binh Duong branch, as of the end of April, the total deposit in the province reached VND203,190 billion, up 0.74% over the previous month, and up 0.07% compared to the year beginning. Total loans reached VND 203,106 billion, an increase of 0.4% compared to the previous month and an increase of 0.78% compared to the year beginning.

This result shows that, over the past 4 months, the banking industry made efforts to implement solutions, boost credit supply to implement the Government's policy to support enterprises. Meanwhile, the current state of banking industry is forecast not to be favorable in the near future. Therefore, in order to achieve high results in its operations and to better support the socio-economic growth, SBV - Binh Duong branch continued to direct provincial credit institutions to regularly review and evaluate the level of impact and damage of customers due to the Covid-19 to promptly have solutions to solve difficulties for customers. Credit institutions in the area need to perform specific business operation strategies suitable to each customer group, ascertain the production and business situation, monitor changes and impacts of the epidemic in the locality, the domestic and foreign economic situation to timely implement measures to support and remove difficulties for customers in accordance with regulations.

 Reported by Thanh Hong - Translated by Ngoc Huynh

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