State Bank of Vietnam - Binh Duong Branch, new momentum created

The year 2017 ended with many signs in the direction of operating monetary policy of the State Bank (SBV) - Binh Duong Branch. In general, over the past 5 years, the State Bank of Vietnam - Binh Duong Branch has achieved many good results, contributing to the sustainable development of the banking industry in the new stage.

Over the past years, with the active policy of the State Bank of Vietnam and the determination of those working in the banking industry in Binh Duong, the industry has continued to achieve good results. So far, nearly 55 domestic banks have been operating in the province, with 55 branches, 168 transaction offices and 10 people's credit funds.

Stable growth

Vo Dinh Phong, acting director of the State Bank of Vietnam - Binh Duong Branch, said that the development of the scale and network of credit institutions associated with the operational capacity of these units has been enhanced with safe and effective currency to meet the liquidity needs of the industry while bad debt has been within limits. In addition, the businesses of the finance and banking sector have made great contribution to the development of the provincial economy, giving customers more choices and creating great opportunities for businesses to enjoy modern financial services.

For years, State Bank of Vietnam – Binh Duong Branch has ensured timely supply of monetary circulation. In this photo: Cash is checked upon transferred from State Bank of Vietnam to Binh Duong Branch. Photo: Thanh Hong

With the expansion of the network, the timely investment of credit capital in production and life has really worked. It is worth mentioning that the credit capital of the banking system in Binh Duong is increasing by 23% year on year from 2013 to 2017, offering capital resources for people, development investment of enterprises in the province. By the end of 2017, total outstanding loans in the province reached VND 152,722 billion, an increase of 23.53% compared to 2016. During the year, the SBV - Binh Duong Branch instructed credit institutions to efficiently focus their capital on five priority areas of agriculture, exportation, supporting industries, advanced technologies, small- and medium-sized enterprises’ labor use, projects, production and business plans and lend to key economic programs of the province.

In addition, the State Bank of Vietnam - Binh Duong Branch also attaches special importance to improving the credit quality of the units. The unit has actively built and successfully implemented the restructuring plan associated with the bad debt management of credit institutions in 2011-2015. It has restructured many debts, exempted interest rates for many customers and prevented timely loans from becoming bad debts. By the end of 2017, the bad debt ratio of the banking system in Binh Duong is VND1,150 billion, representing 0.8% of total outstanding loans which is much lower than the controlling target of less than 3%.

 

In fact, in recent years, in order to actively mobilize capital for investment activities, the State Bank of Vietnam - Binh Duong Branch always instruct credit institutions to increase capital mobilization but still ensure healthy competition. By the end of 2017, the total mobilized capital of the sector reached VND 167,816 billion, increasing by 16.83% over 2016.

Phong said that, when implementing the monetary policy, good banking control solutions should be coupled with inspection and supervision as the policy is good but the inspection is not effective, making the policy difficult to be promoted in practice. Therefore, the State Bank of Vietnam - Binh Duong Branch has actively supervised and implemented specific monetary and credit solutions, giving timely warning of potential risks arising in the banking operations. The branch also develops on-the-spot inspection plans to promptly correct any errors that may arise and limit operational risks, thereby creating legally equitable environment for business and a stable development environment of credit institutions. As a result of the above solutions, the operations of credit institutions have stabilized and maintained the growth rate at strictly abided level by the regulations on interest and exchange rates in depositing and lending activities. Banking operations in the area are always operating in good conditions, ensuring the quantity and quality, especially the system security.

With the strong development effort and active contribution to the economy of the province, in 2013, the State Bank of Vietnam - Binh Duong Branch was honored to be awarded the Second Labor Medal by the State.

Highlights of the banking industry

In recent years, administrative reforms, scientific researches, initiatives and solutions at the State Bank of Vietnam - Binh Duong Branch have become highlights of the sector, bringing high efficiency in the performance of tasks for businesses and local people. Among the initiatives and solutions provided by the branch, new factor models have been accepted and recognized by the Scientific Council for innovative and grassroots level initiatives.

Importantly, the typical initiatives of the State Bank of Vietnam - Binh Duong Branch have been applied in practice, bringing about high efficiency such as reforming the management of gold and foreign currencies in the province, renovation of management work, improvement of personnel work, staff rearrangement, organizational renovation, scientific research, excel file designs to monitor cash withdrawal operations through payment accounts of credit institutions.

In 2017, administrative reforms at State Bank of Vietnam - Binh Duong Branch will be gradually fulfilled to meet the requirements of quick and convenient administrative procedures. Last year, the branch has resolved 3,482 administrative procedures under TCVN ISO 9001:2008 quality management system to be shortened from 2 to 5 days and 15 days for dossiers. It can be said that changes in The way of doing business has helped the banking industry in Binh Duong to be more active, flexible and focused in term of management regarding practical conditions and motivation for development.

The achievements of the past 5 years have been the driving force for the banking industry in Binh Duong to enter a new phase of determination to fulfill the political tasks associated with the socio-economic development of the locality. This is also the foundation for the State Bank of Vietnam - Binh Duong Branch to continue to excellently accomplish tasks entrusted by the Governor of the State Bank, the Party Committee and the local authorities, deserving of the noble title of the First Labor Decoration awarded by the State.

Reported by Thanh Hong – Translated by Vi Bao