Need to transfer capital faster and more conveniently to prevent black credit

	Vietnam has resolved many issues related to transfer pricing
	Warning the phenomenon of foreign currency and money transfer crossing border
	Consulting on IPO and transfer of State capital in the form of book building

Outstanding credit for agriculture is estimated at 1.69 million VND

For the banking sector, Mr. Nguyen Quoc Hung, Director of Credit Department (SBV) said, over time, the whole sector has drastically implemented solutions to increase access to credit for people serving production, business, service and life of people, in particular people and businesses in rural and remote areas.

Accordingly, credit for agriculture and rural areas has recently gained positive results. There are about 70 credit institutions (CIs), a network of more than 1,100 People's Credit Funds and Bank Social for Policies participating in lending for agricultural and rural development.

Loan outstanding balance at the end of November is about 1.69 million billion dong, increasing by 14.5% compared to the end of 2017 (higher than the overall credit growth of the economy) with over 14 million customers having debt; accounting for nearly 24% of total loan outstanding balance to the economy.

According to the representative of the State Bank, the Decree No. 116 was launched in parallel with the credit solutions of the banking sector, which basically met the capital demand for production and business and consumer demand of the people and enterprises, especially improving access to capital for the poor and low-income people in rural areas, contributing to limiting people to seek other informal sources.

However, over time, the development of black credit has still been complicated, especially in the southern and Central Highlands provinces, causing serious consequences, adversely affecting the economy - society. This shows the fact that people are not fully aware of the harm and are still looking for forms of loan sharking.

Speaking at the conference, representatives of the Ministry of Public Security also showed the situation, the way to identify black credit, the difficulties in managing and struggling with black credit activities that is complicated over the time and solutions to prevent this activity.

In addition, representatives of the Farmers’ Association also exchanged cooperation activities between the Association and the Banking sector in the process of lending through the Association, the propaganda for members on credit policies of the banking sector and work of warning the harmful effects of black credit on life and social order and security.

According to Pham Huyen Anh, Deputy Chief Inspector of the Banking Inspection and Supervision Agency (SBV), the banking sector has also actively coordinated with the Ministry of Public Security and related ministries and branches in preventing black credit.

Through a quick summary report of the State Bank branches in provinces, cities, under the request of the police agencies, departments, branches and local authorities, the banking sector coordinated in handling 218 related cases to black credit in 16 provinces and cities with a total amount of about 117 billion VND. In which, 72 cases were handled and 14 cases were prosecuted, 37 cases were administratively sanctioned.

Need to transfer capital quickly and smoothly

Besides, the banking sector also regularly strengthens the coordination with police agencies, departments and local authorities in propagating policies and laws on banking activities and legal regulations on prevention of crime in the field of banking and black credit to the people in the society and participating in the fight, detection, prevention and timely handling of black credit-related cases.

At the conference, commercial banks, financial companies and microfinance institutions also reported on the actual implementation of credit products as well as solutions to increase access to capital for people, enterprises, contributing to the fight against black credit.

About the form of peer-to-peer lending with black credit variables, Mr. Pham Chi Quang, deputy director of the Monetary Policy Department, said the SBV has been coordinating with relevant ministries and branches to study for having a proposal of building appropriate management measures for new forms of payment based on the general technology and P2P Lending operations in particular, in line with the Prime Minister's directions.

This is to encourage enterprises to apply innovations of technological achievements, while protecting the legitimate rights and interests of the parties, especially the legal rights of the people, ensuring financial security, security of the national currency.

According to Mr. Nguyen Xuan Thang, representative of Vietnam Farmers' Association, it is necessary for the banking sector to coordinate transferring their capital faster and more conveniently to people in need.

"People may lack information, so it is necessary to promote information on bank loans to people to get enough information so as not to seek black credit," Thang said.

In the coming time, the banking sector said it would continue to co-operate and drastically implement solutions to boost credit investment effectively to serve agricultural production and capital needs for people's life in rural areas, contributing to reducing black credit.

Specifically: Continuing to direct credit institutions to expand credit and prioritize the focus on loans for agriculture and rural areas, promptly implement solutions to solve difficulties for people in accessing bank credit capital.

Strengthening coordination with ministries and branches to continue to effectively implement specific credit programs in the agricultural sector; the SBV continued to direct the banking system to speed up administrative reforms, simplify borrowing procedures to improve access to loans for people as well as businesses in agriculture and rural areas.

Sprint to disburse capital from the budget VCN - As the end of the year is near, the disbursement of investment funds from the budget ...

At the meeting, Deputy Governor Dao Minh Tu emphasized that in order to coordinate prevention and fight against black credit, in addition to coordinating solutions and policies of the banking sector, it is necessary to have a synchronous, tight and drastic solution of the political system.