Quality of household loans at the Bank for Social Policies - Hanoi City Branch

Annually, the city's budget is supplemented to the capital source for lending to households at the Hanoi City Social Policy Bank.

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.

Propose to the Board of Representatives at all levels from the City to the District to further enhance the role of direction and management. In fact, the Board of Representatives has not been really effective. In recent years, overdue debt of credit loans for job creation has tended to decrease, but the overdue debt is still high, so it is necessary to pay more attention and direct the propaganda work to the masses, only the authorities at all levels coordinate to thoroughly handle overdue debt. From there, develop household lending activities more effectively.

Strengthen self-inspection and specialized inspection with the participation of inter-sectoral agencies on household credit loans. Direct the People's Committees at lower levels to coordinate with village heads and savings and credit groups to evaluate households for appropriate loans, and urge the collection of overdue debts to improve the quality of household credit loans.

The poverty reduction committees at all levels need 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 households in particular. In that case, 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 to households.

3.3.3.2. For socio-political organizations receiving entrustment.

It is necessary to strengthen guidance on the transfer of science and technology, create production and business linkage models so that poor households and households borrowing capital from policy banks can use capital most effectively, shorten the time to escape poverty and become rich.

It is recommended 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 Household 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 the situation of "overdue debt " .

CONCLUDE

In recent years, " with the attention of the Government, Party committees, local authorities, agencies and branches and the efforts of the Social Policy Bank, Hanoi Branch, it has made an important contribution to the socio-economic development, especially actively contributing to the National Target Program on Hunger Eradication and Poverty Reduction, contributing to promoting economic growth, shifting the economic structure towards progress and improving the quality of life of local residents. From the research results of the topic: Quality of household loans at the Social Policy Bank - Hanoi Branch, it can be concluded that:

Firstly, the research results of the topic have contributed to systematizing the theoretical and practical basis of household lending; the quality of household lending; its role in implementing the national target program on sustainable poverty reduction, ensuring social security and in line with the development strategy of the Bank for Social Policies. From there, the inevitable issue that needs to be raised is to improve the quality of household lending.

Second, Analyze and evaluate the current status of household lending quality at the Hanoi Social Policy Bank over the 3 years of 2017-2019. The analysis results show that the lending activities for policy households of the Hanoi Social Policy Bank have contributed to effectively reducing the poverty rate in Hanoi. Over the 3 years of 2017-2019, the number of poor households receiving loans from the Hanoi Social Policy Bank increased by nearly

2,000 turns, contributing significantly to reducing the poverty rate in Hanoi by an average of 2-2.5% per year, in 2019 it decreased by 1,834 households compared to 2017. Maintain the overdue debt rate at no more than 1.5% (allowed not to exceed 2%). Through loans for policy households, poor households and policy household loan beneficiaries are improved in production capacity and household economic management; raise awareness, help them be more autonomous in planning their production. To have a basis for proposing objective and comprehensive solutions. The author conducted a survey of 167 poor, near-poor, and newly escaped poverty households in Hanoi according to the content of prepared questions. The survey results show that poor households and beneficiaries

The policy borrowers highly appreciated the policy household loans and the quality of policy household loans. In addition, there were also opinions that were not satisfied with some aspects such as: the loan capital source did not meet the needs of the borrowers; difficulties in using the loan capital because the loan limit was still low; the loan term needed to be longer; the desire to adjust the loan interest rate in a better direction...

Third, from the above analysis, the thesis proposes 5 groups of solutions to improve the quality of household loans at the Social Policy Bank, Hanoi branch. Specifically: (1) Solutions to build and create appropriate capital sources; (2) Solutions to increase the average loan amount; (3) Solutions to ensure full and timely repayment of loans to avoid bad debts and overdue debts; (4) Solutions to improve the lending mechanism and (5) Solutions from survey results. These are groups of highly feasible solutions, suitable for practical operations, contributing to improving the quality of household loans of the Social Policy Bank, Hanoi branch in the period " to 2025".

REFERENCES

1. Luu Thi Huong (2003), Corporate Finance, Statistical Publishing House, Hanoi.

2. Phan Thi Thu Ha (2002), Commercial banks, Statistical Publishing House, Hanoi.

3. Tang Tien Sy (2019), Credit quality for poor and near-poor households at the Vietnam Bank for Social Policies in Phu Tho province, Master's thesis, University of Commerce.

4. Nguyen Hong Tham (2018), Student Loans at the Vietnam Bank for Social Policies, Hanoi Branch, Master's thesis, University of Commerce.

5. Do Minh Duc (2018), Development of employment loans of the Vietnam Bank for Social Policies, Hanoi City Branch, Master's thesis, University of Commerce.

6. Nguyen Van Duc (2016), Student loans of Vietnam Bank for Social Policies - Current situation and solutions, PhD thesis, University of Commerce.

7. Vietnam Bank for Social Policies (2004), Handbook of credit policies and practices for poor households, Agriculture Publishing House.

8. Vietnam Bank for Social Policies (2014), Credit business document system, Agriculture Publishing House, Hanoi.

9. Vietnam Bank for Social Policies, Credit Report 2017, 2018, 2019.

10. Vietnam Bank for Social Policies (2019), Report on the 5-year review of the household lending program for the period 2015-2019.

11. Phan Thi Thu Ha (2004), Commercial Banking, Management and Operations, Statistical Publishing House.

12. Nguyen Trong Hoai (2007), Development Economics, Labor Publishing House

13. Tran Huy Hoang (2007), Commercial banking management, Labor - Social Publishing House

14. Nguyen Van Tien (2009), Commercial Banking Textbook, Statistical Publishing House

15. Nguyen Van Tien (2014), Banking credit textbook, Statistical Publishing House

APPENDIX

CUSTOMER SURVEY FORM

Dear Sir/Madam,

I am a graduate student of Banking and Finance at the University of Commerce. Currently, I am doing my master's thesis on the topic: Quality of household lending at the Social Policy Bank - Hanoi Branch . In order to evaluate the quality of household lending at the Social Policy Bank - Hanoi Branch in a realistic way, I would like to thank you and hope that you will take a moment to read and fill out this questionnaire. All results of this survey will be kept completely confidential.

Thank you very much and I look forward to your cooperation so that I can complete my thesis.

Part 1. Overview

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the following contents:

Question 1. Please tell us about the household loan program you have used.

Near poor household

newly escaped poverty

.................................

Question 2. Please indicate the time of using the policy household loan.

2 years Question 3. Household loan limit

30 million or more

Question 4. Purpose of using loan capital from policy household loans;

Question 5. The level of loan response of the Bank compared to loan demand.

book

Question 6. Difficulties in using loans from household loans

Question 7. Your perception of the benefits of using loans

agriculture

Part 2. Research content

2.1. Customer evaluation of capital channel to customers of Hanoi City People's Credit Fund

STT

Target

Disagree

Agree

Totally agree

Capital channels to customers of Hanoi People's Credit Fund are diverse.

Customers can easily access capital channels of the Hanoi City People's Credit Fund.

Maybe you are interested!

2.2. Evaluation of credit efficiency for borrowing households and localities

STT

Target	Disagree	Agree	Totally agree
1	Household loan program of the City People's Credit Fund Hanoi helps me have a stable income
2	Household loan program of the City People's Credit Fund Hanoi helps me increase my income
3	Household loan program for contribution to employment poverty reduction, improving local economic efficiency

2.3. Customer satisfaction

Below are statements related to customer satisfaction with the quality of household loans at the Social Policy Bank, Hanoi branch. Please respond by circling or marking X on each statement that you think is correct. These numbers represent the level of agreement or disagreement with the statements according to the convention from 1 to 5 with increasing levels of agreement.

Evaluation criteria

Rating level
1	2	3	4	5
Reliability
1. The bank always serves customers as promised.
2. The bank executes the transaction correctly the first time
3. The bank performs according to the committed time.

Quality of household loans at the Bank for Social Policies - Hanoi City Branch - 12

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