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Deputy Governor of State bank, Dao Minh Tu, spoke at the Conference. Photo: H. Diu

On June 17, in Hanoi, the State Bank of Vietnam (SBV) organized an online conference to promote administrative reforms in the banking industry, improve the business environment and improve the credit access index; continuing to implement the Resolution No. 02 / NQ-CP of the Government in 2019.

A variety of improvements

Speaking at the Conference, Deputy Governor Dao Minh Tu said the SBV has asked credit institutions to deploy programs of administrative procedure reform and modernization of the organizational structure. Credit institutions must review and promote their responsibilities in improving credit access index, non-cash payment and cut business conditions.

In addition, the Deputy Governor of the State Bank also said that despite the fact that connecting banks with businesses faces many difficulties and obstacles, especially in some areas in the Mekong Delta in the procurement of rice and seafood or in the Central Highlands in the cultivation of rubber and coffee trees, they have been actively handled by credit institutions and problems have been reviewed to solve in time for enterprises.

Reporting on the results of administrative reform activities of the banking sector, representatives of the State Bank's departments said that the State Bank has closely followed the decisions and instructions of the Government and the Prime Minister to meet the industry's goal of supporting businesses and people to access capital and banking services, contributing positively to improving the business environment.

Therefore, the system of credit institutions has actively reviewed, cut down and abolished many administrative procedures; actively adjust down lending interest rates to support production and business enterprises; providing nearly 100 credit programs and products to support businesses with preferential capital. In addition, banks also actively review the overall charge, service prices, reduce many types of fees and upgrade the technology systems.

Thanks to the above activities, according to the World Bank's 2019 Business Environment Report, Vietnam's "access to credit" index currently ranks 32/190 (reaching 75/100 points), on par with Singapore and Malaysia.

Connect with ministries and sectors

Also at the conference, banks and representatives of the State Bank branches in provinces and cities have reported on the results of operations and made some recommendations for more effective administrative reforms.

According to Le Trung Thanh, Deputy General Director of BIDV Bank, BIDV has enhanced information technology to increase productivity by 5-10%; issued 40 documents to reform procedures and reduced processing time for each loan; applying the "single window" disbursement transaction, reducing the number of signatures and customer records but still ensures safety under the regulations of the State Bank.

However, in order to operate more effectively, BIDV proposed that the State Bank should consider flexible regulations, issuing legal regulations on online credit granting activities.

Regarding this issue, Ms. Dinh Thi Thai, Deputy General Director of Vietcombank, said that in payment activities, Vietcombank has connected with 34 Customs Branches, 63 Tax Departments and 53 insurance units so that a range of benefits are devoted to customers in non-cash payments.

However, Thai suggested that the SBV should continue to improve the legal system but reduce unnecessary procedures. In addition, in the work of preventing money laundering, terrorist financing and financial crimes, the State Bank should cooperate with the ministries of Public Security, Foreign Affairs, and Justice because the early warning helps banks with term risk and increases the effectiveness of crime prevention.

For commercial banks, the improvement of administrative procedures is always the top priority. Mr. Nguyen Hung, General Director of TPBank, said that in the near future TPBank will launch a quick credit approach for small and medium enterprises, the bank will launch applications on the phone, helping enterprises approach and the bank answer and approve credit in about 8 hours.

However, Mr. Hung complained that the banks must fully answer requests from ministries and agencies from the provision of providing customer information to the relevant authorities in the investigation.

On the other hand, Mr. Pham Quang Thang, Techcombank Deputy General Director, proposed that the management agencies should build a communication system among the authorities because providing information from one side of the bank, there is no bank exploiting information from authorities to identify customers.

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Therefore, Mr. Thang hoped that the authorities are considered the bridge for businesses to contact such as tax and customs could provide information so that the bank can assess the business credit, know which businesses owe tax or if there are problems with goods.

Moreover, through this, the bank can look deeply into the characteristics of each sector of the business to develop more flexible credit policies.