In 2019, the banking will synchronously implement solutions to maintain a stable growth, completing the set targets.
In 2019, the banking will synchronously implement solutions to maintain a stable growth, completing the set targets.
Implement synchronous solutions
In 2019, the banking sets target of 14% in growth. The State Bank of Vietnam has implemented interest rate management in line with the macroeconomic developments and currency market, stabilizing the operating interest rates; and directed credit institutions to balance finance to apply reasonable lending interest rates. By the end of the year, the State Bank has lowered the operating interest rate to create a premise to reduce lending rates. In Khanh Hoa, the banking strives for credit balance to increase by 14-16%, and the bad debt ratio below 2%.
In order to accomplish the set targets, during the year, the Khanh Hoa Branch of the State Bank has proactively reported to the Provincial Party Committee, the provincial National Assembly Delegation, the provincial People's Council and the provincial People's Committee on the implementation of solutions curency, credit and operation. In the province; proposed solutions to supporting banking activities. Besides, the branch has coordinated with relevant departments and agencies to promptly and effectively implement credit programs for sectors, fields and policy credits. The branch has also consulted the Provincial People's Committee to direct relevant agencies and units to coordinate in synchronously deploying solutions to expand credit, partly restricting black credit.
The State Bank of Khanh Hoa Branch has instructed and closely supervised credit institutions in the province in implementing the State Bank's mechanisms, policies, solutions on currency, credit and banking activities; direct drastically and effectively the implementation of credit programs in the direction of expanding credit in parallel with credit safety and quality; expand operation network, develop mobile banking model in difficult areas, create favorable conditions for customers to access capital and other banking services; develop banking products and services suitable for each customer segment, especially in rural, remote and isolated areas ... contributing to restricting black credit. In addition, strictly control the level of credit concentration in potential risk areas to ensure loan safety and economic efficiency, limit newly arising bad debts; control lending in foreign currencies in line with the policy of limiting dollarization in the economy; continue to improve, innovate and modernize the process of supplying products and services ...
Targets have been fulfilled
Thanks to synchronous implementation of solutions, by the end of December 2019, the capital mobilization of the whole province was estimated at VND84,120 billion, up 8.19% compared to the beginning of the year; total credit balance was estimated at VND88,790 billion dong, up 14.06% compared to the beginning of the year; bad debt rate of credit institutions' branches in the area were low, at 0.67%. Thus, the provincial banking has achieved set targets for this year. Regarding credit structure, credit balance by economic sectors has been corresponded to the province's economic development orientation. Credit balance of tourism - service - trade sectors accounts for 70.52%; industry - construction accounts for 22.56%; agriculture - forestry - fishery accounts for 6.92%.
According to Mr. Nguyen Hoai Chieu - Director of Khanh Hoa Branch of the State Bank, the credit institutions’ branches have strictly followed economic development goals of the province, expanded credit effectively, actively deployed solutions to remove difficulties and support businesses' development. Interest rates have been kept stable, creating favorable conditions for customers to access bank capital. Credit capital is allocated appropriately, aiming production and business areas and focusing on priority subjects. Credit growth has been good, supporting economic growth but still ensuring credit quality. Credit balance structure by economic sectors has been suitable with the development goals of the province.
Nam Du
Translated by T.T
