Effectiveness of job creation loans at the Bank for Social Policies - Hanoi City Branch

The collection of overdue debts is still outstanding. The quality of the Savings and Credit Team has improved, contributing to improving the quality of the mobile transaction team activities in communes and wards. Research and take measures to end the situation of debt encroachment, appropriation, and borrowing by the Association's officials as well as the Management Board of the Savings and Credit Team. At the same time, focus on and resolutely handle the above-mentioned outstanding debts of encroachment and appropriation. Strengthen and do a good job of inspection and supervision of entrusted activities, carry out annual public debt reconciliation according to regulations, especially inspect the activities of the Savings and Credit Team regularly and with quality. Evaluate the activities of the Association at each level in conjunction with emulation and reward work, create motivation for competition and have disciplinary measures for irresponsible collectives and individuals who do not perform well."

3.2.3. Information and propaganda work.

“Information and propaganda have always been an effective support tool for the Hanoi Branch of the Social Policy Bank. Through the electronic information portal of the Hanoi Party Committee, the branch has promptly deployed to the people new policies on credit loans to create jobs. The Hanoi Branch of the Social Policy Bank needs to organize online conferences to promptly answer the difficulties and problems of the people and the press in the area. The branch also needs to assign targets to districts and towns to publish news and post articles on the information portal of those districts and towns to help people understand the current credit programs. In parallel with newspapers, radio and television, the form of hanging signs publicly announcing preferential credit programs according to Official Dispatch 2064A at the headquarters of the People's Committees at all levels, every month the mobile transaction team has one day on duty at the transaction points at the People's Committees at all levels, during this transaction session, bank staff must proactively propagate to the people.”

“Focus on the work of building and updating the Branch's information on the website in a scientific, quick and accurate manner, with policies on loans to solve employment problems, avoiding the situation of updating information untimely, which will cause questions and confusion for people when viewing information on the Branch's website.”

Maybe you are interested!

“Propaganda information about the People's Credit Fund in general and the Hanoi Branch in particular to help the whole society know and understand correctly about the People's Credit Fund, understand correctly about the

preferential policies of the Party and State, so that everyone can participate in capital management and building the Bank."

3.2.4. Staff training

Unlike commercial banks, their customers are often large customers, with large loans and their operating goal is for profit, so their staff training is also different from the Social Policy Bank. The activities of the Social Policy Bank are not for profit, the customers are policy subjects, small loans, the level of customers is different and uneven... In the activities as well as in the communication and implementation of work, if not careful and thoughtful, the image of the Social Policy Bank will be distorted, people will misunderstand the policies that the Party and the State are implementing through the Social Policy Bank.

After a period of operation, the Social Policy Bank has handled many violations by officials, including key officials at branches nationwide. Some officials took advantage of preferential policies of the State and their assigned work to borrow money from others or receive tips from borrowers (about 100,000 VND). For customers of commercial banks, this is not a large amount of money, but for customers of the Social Policy Bank, this is a relatively large amount of money. There are places that add officials without selection or if there is, it is only a formality to get their children to work, from which there is a phenomenon of taking advantage of the assigned position, officials have taken the right money... These are valuable lessons for the entire Social Policy Bank system in general and the Hanoi Branch in particular in selecting and training staff.

- The Hanoi City Branch of the Vietnam Bank for Social Policies cannot carry out maximum specialization like other commercial banks. With a thin staff force, it must implement many lending programs at the same time and spread across all communes and wards. To meet the job requirements, in addition to training to improve skills, educating and training a team of staff proficient in professional skills as well as professional ethics, the Vietnam Bank for Social Policies must train active, multi-talented staff, staff who do one job but know many jobs and have the additional capacity to organize and mobilize the masses.

Especially the workforce at the Transaction Offices is even thinner. The staff assigned to do mobile transactions in communes and wards must be trained in comprehensive skills, each staff must be proficient in all skills, processes, and procedures of credit, accounting, cashiering, and information technology. Therefore, the branch must focus on training to improve the professional qualifications of staff, and at the same time require each staff to study and improve their professional qualifications. For staff with poor capacity, who cannot meet the requirements of the job, or are lazy and intentionally violate regulations, the branch must have timely and decisive measures to handle them.

- Improve the quality of human resources through training and retraining to create a team of staff with professional expertise. To train effectively, avoid wasting time and money, it is necessary to reclassify staff according to their positions before organizing training. To improve the operational capacity of staff, it is necessary to organize scientific research sessions to find effective working methods.

- In the operating mechanism of the Hanoi Branch of the Vietnam Bank for Social Policies, in addition to the core staff of the Bank, we have entrusted through associations and unions at all levels. This is a force that effectively supports the Bank in the process of implementing loans and urging debt collection. Every year, the Branch has to pay the trust fee and commission to these associations and unions, which is relatively large compared to the total operating costs of the entire Branch.

- The association and union officials who coordinate with the Branch to do loan management work are mostly part-time. In addition to this job, they have to do other association work in the locality, so they cannot have the deep professional expertise like a Bank official and they cannot focus all their time and expertise on the Bank's entrusted work.

There are times and places where the Branch's capital is not lacking, but because the associations, unions and local authorities at all levels do not have full responsibility and dedication, they cannot closely follow the needs of the people. There is also a phenomenon where association and union officials at all levels take advantage of the trust of the people when collecting capital for households but do not pay it to the Bank to circulate and embezzle.

capital. In addition, many team leaders are afraid of wasting time and are reluctant to participate in training courses for bank staff, so the Hanoi Branch needs to be more proactive and do a good job of propagating in training expertise, skills, and awareness for the force doing this entrusted work, helping them to understand their rights, obligations, and responsibilities.

Therefore, it is necessary to enhance the quality and effectiveness of training according to the motto "hand-holding and guiding" so that this team has basic knowledge of credit management, inspection and supervision, risk detection and prevention, consulting and guidance on effective and proper capital use.

3.2.5. Develop a mechanism for statistics on labor and employment status for workers in localities.

- To effectively manage and create jobs for workers, the first thing to do is to accurately grasp information about workers such as age, gender, employment status, income level, place of residence, number of family members, professional qualifications, current occupation, working capacity, etc.

- To effectively implement this content, it is possible to conduct statistics on the labor situation similar to the current method of reviewing poor households, which is to review the list and include it in statistics, consider and evaluate according to the criteria, and at the same time, workers will be issued a code (labor book) similar to the current poor household code.

- Data on labor status is evaluated and adjusted annually, stored through the labor information system in each administrative unit of districts. Accordingly, all agencies can use and exploit it. Particularly for the Social Policy Bank system, when implementing loans for GQVL projects, it will be used to make loans to the right subjects and monitor and put them into the management system, ensuring more strictness, avoiding lending to the wrong subjects, lending according to emotional subjects when preparing documents and appraisals.

3.3. RECOMMENDATIONS

3.3.1. For the Government, the State Bank and the Bank for Social Policies

3.3.1.1. For the government

- According to current regulations, our country is applying the poverty line for the five-year period (from 2016-2020), but under the impact of price increases and inflation, the current poverty line is too low. Therefore, it is recommended that the Government soon adjust the new poverty line, so that many poor people can benefit more from the state's preferential policies. In the long term, the poverty line should be adjusted annually instead of periodically as it is now.

- Regarding lending interest rates: Do not subsidize interest rates, because subsidies do not encourage borrowers to think about repayment. Government subsidies are not a reliable form of assistance. They only demonstrate humanitarianism and are not a form of income-generating investment. It is necessary to increase the loan amount, loan term, and promptly handle risky debts due to objective reasons for lending to customers;

- The Government continues to issue documents directing local Party committees and authorities at all levels to seriously carry out the annual assessment of poor households; the assessment must be carried out publicly, democratically, and in accordance with reality. Avoid the current situation, in most localities, the number of poor households on the list is much less than the actual number of poor households.

3.3.1.2. For the State Bank of Vietnam.

“Actively perform the state management function according to the authority for the activities of the Social Policy Bank, Hanoi Branch, in order to promptly remove difficulties and obstacles that the Branch has proposed. Support the Social Policy Bank, Hanoi Branch in capital mobilization, direct State credit institutions (including State credit institutions that have been equitized and the State holds controlling shares) to maintain deposit balances at the Social Policy Bank, Hanoi Branch. Have policies to support the Social Policy Bank to soon complete the modern payment system, allowing the Social Policy Bank to perform some additional banking services, in order to help the Social Policy Bank in the future to be able to provide customers in remote areas with modern banking products and services.”

3.3.1.3. For the Social Policy Bank.

“To make it easier for people to access preferential credit sources, the Bank for Social Policies should make adjustments to the loan process for job creation. Minimize and simplify loan procedures further so that borrowers can easily and quickly access preferential loans for job creation. Increase loan sources for job creation from the Central Budget; The operating capital of the Bank for Social Policies branches is currently mostly mobilized from the Bank for Social Policies and the loan plan is planned by the Bank for Social Policies under the proposal of the Bank for Social Policies Branch. Therefore, the loan source is an important factor determining the development of the scale of job creation lending activities. In recent years, although the Bank for Social Policies Hanoi Branch has achieved more than 100% of the set plan, there are still many households and production and business establishments in need of loans. Therefore, it is recommended that the Bank for Social Policies increase the capital source for loans to create jobs to meet the demand for loans to create jobs in the capital, contributing to the goal of reducing the unemployment rate in the area and increasing the number of workers with jobs."

3.3.2. For Hanoi City People's Committee

“The capital for GQVL loans includes the following sources: the central budget and the city budget. Meanwhile, the central budget is limited because it has to be spent on many other national programs and activities, so in order to develop GQVL lending activities, the Hanoi People's Committee must increase the city budget capital target. Accordingly, the Hanoi People's Committee must allocate the city budget from increased revenue and reduced expenditure to supplement the GQVL lending capital to meet the needs of the people. Therefore, increasing the capital entrusted to the Hanoi Branch of the Vietnam Bank for Social Policies for lending GQVL from the city budget is one of the most effective solutions of the Hanoi People's Committee in achieving the goal of reducing the unemployment rate and improving the lives of the people in the capital.”

3.3.3. For the Representative Board, authorities at all levels and entrusted organizations

3.3.3.1. For the Representative Board, authorities at all levels

“Recommend a lawsuit to the Representative Board at all levels from the City to the District to further enhance the role of direction and management. In fact, the Representative Board of the Board of Directors has not been really effective. In recent years, overdue debt of credit loans for job creation has tended to decrease, however, overdue debt is still high, so it is necessary to pay more attention and direct more extensive propaganda work to the masses, only for authorities at all levels to coordinate to completely handle overdue debt. From there, develop loan activities for job creation more effectively.”

“Strengthen self-inspection and specialized inspection with the participation of inter-sectoral agencies on credit loans for job creation. Direct lower-level People's Committees to coordinate with village heads and savings and credit groups to evaluate households that borrow loans for the right subjects, and urge the collection of overdue debts to improve the quality of credit loans for job creation.”

“The poverty reduction committee at all levels needs to assign specialized staff to monitor policy credit work. The assigned staff must be those who have a firm grasp of the lending process and must open books to monitor lending activities of the Social Policy Bank, Hanoi Branch. Avoid the situation where a commune or ward staff takes on many tasks, including managing lending to policy beneficiaries in general and lending to create jobs in particular. Then, lending to policy beneficiaries of the Social Policy Bank, Hanoi Branch will not be focused on, causing the quality of lending to decline, thereby affecting the development of lending activities to create jobs.”

3.3.3.2. For socio-political organizations receiving entrustment

To properly implement the Trust Contract as signed with the People's Credit Fund, it is necessary to arrange and clearly assign specialized staff to monitor the trust work, and limit the change of Union and Mass Organization staff for these staff.

Improve the capacity to perform the entrustment tasks and knowledge of organization and management for the cadres of the Unions at all levels, so that they can coordinate well the activities of establishing the Groups, organize well the training for the cadres of the Unions at all levels (especially at the commune level) and the Management Board of the Savings and Credit Groups.

Unions at all levels need to closely coordinate with the VBSP to train subordinate unions and savings and credit groups on loan entrustment skills. In particular, good coordination is needed in the inspection and supervision of loan use.

The entrusted association needs to closely monitor the savings and credit groups managed by the association to ensure that the urging of principal repayment, collection of loan interest, and savings collection are carried out effectively.

It is necessary to study reasonable sanctions for associations and organizations: Organize professional talent competitions, manage among associations and organizations, classify associations to improve the level as well as encourage enthusiasm in working of associations and organizations. "It is necessary to strengthen guidance on science and technology transfer, create models

Linking production and business so that poor households and households borrowing capital from policy banks can use capital most effectively, shortening the time to escape poverty and become rich."

“We request that socio-political organizations receiving City-level authorization further strengthen the direction of organizations at all levels to effectively implement the authorization stages, closely coordinate with the Vietnam Bank for Social Policies, Hanoi City Branch in consolidating and improving the quality of the Employment Credit Program. Strengthen the appraisal, inspection and supervision of borrowers before, during and after borrowing to ensure that borrowers use the loan for the right purpose, effectively, thereby avoiding overdue debt.”

3.3.3.3. Solution with the TK&VV Team

In addition to regular training and additional training on trust operations, the Group Management Board needs to be equipped with additional management knowledge and working skills: Bookkeeping, conducting Group meetings, communicating with the Bank...;

The Group Management Board also needs to strengthen monitoring and closely manage the area to clearly understand the circumstances of each borrower; organize regular Group meetings as stipulated in the Group's convention. Through Group meetings, members can share experiences to better use capital, while helping the Group Management Board collect interest more easily, strengthening the bond between group members and group members, and the Savings and Credit Group Management Board.

Improving the quality of loan assessment: Accurate assessment of borrowers

Effectiveness of job creation loans at the Bank for Social Policies - Hanoi City Branch - 12

Comment