On January 30, 2023, Mr. Nguyen Quoc Cuong – Co-opBank Chairman signed and promulgated Official Letter No.154/CV-NHHT on the implementation of Directive No. 01/CT-NHNN dated January 17, 2023 by the Governor of the State Bank of Vietnam (SBV) on organizing the implementation of key tasks of the banking industry in 2023. Accordingly, the units of the whole Co-opbank system needs to seriously implement the assigned functions and tasks in order to build Co-opBank to become the bank of all People’s Credit Funds (PCFs) as well as the focal point for linking the system, providing financial support, intermediating capital, ensuring the safety of PCF system; being an effective tool of the SBV in supporting the operation of PCFs system and promoting the development of other types of collective economy on a national scale while well performing the role of commercial banking; consolidating and improving the quality of human resources to ensure future growth.
Mr. Nguyen Quoc Cuong – Co-opBank Chairman gives his speech at the Conference on implementing the 2023 missions of Co-opBank
Focus on 5 task groups
Five key groups of tasks of Co-opBank to be implemented in 2023 have been clearly stated in the guiding document, including:
First, performing the duties and responsibilities of “The Bank of PCF system”. In which, Co-opBank focused on well performing the task of capital intermediation for PCF system; support PCFs to promote non-cash payments, implement digital transformation; carry out inspection and supervision of PCF system; support and advise PCFs in their activities; actively participate in handling weak and unsafe PCFs in operation.
Second, deploying business activities in 2023 to meet the requirements of strengthening financial capacity, operate safely, effectively and sustainably to be the support for PCFs as well as promote the development of their members. The collective economic model is another co-operative on a national scale. In particular, Co-opBank actively develops and implements the 2023 business plan and financial plan, closely following the solutions for managing monetary policy, credit, banking activities of the Government and the SBV, making efforts to fulfill the targets (Increasing loan porftolio: according to the target assigned by the SBV and proactively proposing to increase the target in accordance with demand and quality; Increase the size of mobilized capital: 20%-30%; Increase in total assets: 15%-20%; Profit increase from: 5% – 10%; Bad debt ratio: less than 2%; Safe, effective and sustainable credit growth goes hand in hand with improving credit quality and controlling bad debts.
Third, implementing the restructuring of Co-opBank for the period of 2021-2025. In which, through the review and evaluation of the results of the implementation of the Restructuring plan associated with bad debt settlement by 2020 of Co-opBank approved by the Governor in Decision No. 03/QD-NHNN on January 8, 2018, will draw lessons to continue to develop a Restructuring plan associated with bad debt settlement in the 2021-2025 period, following Decision No. 689/QD-TTg, Decision 1382/QD-NHNN and guiding documents of the SBV; Develop a plan to increase capital and improve the quality of Co-opBank’s own capital, improve the capital adequacy ratio in accordance with regulations of the SBV; Continue to speed up the handling and recovery of bad debts, debts that have used provisions.
Fourth, strengthen the inspection and internal audit; improve management and administration capacity; preventing, combating and preventing legal violations in the banking sector.
Fifth, developing modern payment services; implementing digital transformation strategy in banking activities; ensure security and safety of information technology and payment system.
In addition, there are other tasks to ensure business administration activities not only for Co-opBank but also for the safe and efficient system.
Each unit must actively develop and implement effective plans
Based on the assigned functions and tasks, the contents of Directive 01/CT-NHNN dated January 17, 2023 and the Official Letter No.154/CV-NHHT, Co-opBank must develop plans and programs for implementation and focus on performing the following tasks in 2023:
At Co-oBank Head Office:
Urgently complete and submit to the Governor of the SBV the 2023 business plan, financial plan, labor and salary plan of Co-opBank. Assigning targets and plans to units on a quarterly and adjusting them in accordance with the developments and actual situation of each unit. Request organizers to implement from the first months of 2023; strengthen direction, inspection, supervision, quarterly evaluation of the results of implementing units to ensure compliance with Co-opBank’s direction on assigned targets.
Finalize the Co-opBank restructuring plan in association with bad debt settlement according to the development strategy for the period 2021-2025 and report to the SBV for implementation. Proposing the SBV to consider and improve the legal framework for the operation of Co-opBank and the PCFs and strengthen the linkages to fundamentally adjust the operation of the PCFs in accordance with the purposes of the Co-operative principles, autonomy and self-responsibility, roles of members, scale of operation, especially in the inspection of PCFs, loans for capital regulation, liquidity support, handling of weak PCFs. Proposing the SBV to report to the Government to study and submit to the Politburo to issue a new Directive to replace Directive 57-CT/TW; Support for Co-opBank to increase its charter capital; Reduce income tax; Borrowing from the State’s preferential capital at a reasonable interest rate, creating conditions for Co-opBank to expand its operation scale and improve its financial capacity to serve digital transformation and support PCFs.
Paying attention to monitoring and directing the Departments/Centers and Branches to perform their responsibilities and tasks of taking care and supporting the PCFs; manage and use the Safety Fund in accordance with the direction of the SBV in the direction of being an effective tool in PCF management activities; Actively advise and participate in support when the PCF faces difficulties; Proposing the SBV and the Government to consider having support for the Safety Fund to handle loans that cannot be recovered.
Reviewing and ỉmproving professional processes, internal regulations, capital regulation, guidance on supporting PCFs in difficulties… to meet operational requirements between Co-opBank and PCFs; update the new regulations of the SBV and conform to the requirements of bank digitization; promptly and thoroughly handle problems and proposals of the branch. Review, arrange and manage the area of operation, take care of PCFs for departments and units of Co-opBank; evaluate the network’s performance according to the principles of productivity, quality, and scale.
Building Card and Digital Banking Center to become a center for creation and innovation of products and services, focusing on operating and exploiting business, gradually building a distribution channel for digital banking and financial products of Co-opBank. Focusing resources on implementing the digital transformation plan and information technology strategy in the 2021-2025 period; ensure security and safety in accordance with regulations of the SBV and in accordance with Co-opBank activities; Effectively exploit international support projects.
Focusing on implementing the restructuring of the operational organizational model, the organizational structure from the Head Office to the branches in the direction of specialization; applying the staff management process in the direction of innovation and modernity; implementing the planning of managers at all levels for the period of 2021-2026; focus on improving the quality of human resources through new recruitment and rotation of staff from the Head Office to the branch and from the branch to the Head Office. Implement staff training programs and standardize the training process according to the positions of managers; training programs on knowledge, skills, digital banking… in the whole system.
Salary, commendation and welfare regimes for employees continue to improve towards productivity and responsibility. Implement periodic medical examination, health insurance, health care programs for employees throughout the system.
Regularly inspect and supervise branches in asset management and use to improve efficiency results of using capital and assets of Co-opBank; develop the process of asset management, procurement, capital construction and investment to meet the new regulations of the SBV and the practice of Co-opBank; Implement the brand communication plan and brand management regulations of Co-opBank to unify the operation management throughout the system. These contents must be internal inspected and audited annually throughout Co-opBank; Research and propose investment to effectively use Co-opBank’s assets.
Improving the internal inspection and internal audit. Implement internal inspection and audit plans on specific, transparent and effective principles; remote monitoring combined with on-site inspection; early detection and timely warning of risky behaviors to strictly handle violations, improve discipline to prevent law violations in Co-opBank’s operations.
Developing and implementing the Project on strengthening the unified Party organization in the network system of Co-opBank. Co-opBank Trade union actively proposes and implements activities to take care of employees. Seriously and actively innovate contents and modes of operation; well organize emulation movements and propaganda activities; encourage employees, union members to strive to fulfill their assigned tasks, contributing to the completion of tasks in 2023. Implement the Bank’s Code of Conduct for employees; Implement Grassroots Democracy.
At Co-opbank branches:
Proactive, flexible and drastic in organizing the implementation of the assigned plan and targets; actively discuss with the Head Office about annual plans and targets; assign specific targets to departments and staffs, evaluate the results of the implementation of the plan on a monthly and quarterly basis; strive to complete and exceed the assigned targets; manage and use operating expenses in the spirit of efficiency and thrift.
Proactive, creative and flexible in supporting PCFs, regularly grasping information and operation status of PCFs. Focusing on Co-opBank’s responsibilities in linking the PCF system and the Vietnam People’s Credit Fund Association. Promptly report to Co-opBank H.O and SBV branches in provinces on solutions to handle problems and risks of the PCFs. Inspect and manage the quality of loans to the PCFs, regulation sources, project sources…; actively coordinate with the Safety Fund to ensure system safety. To include the contents of the PCFs in the periodic briefings of the branch and the Board of Directors, the Deputy Directors must also understand the situation of the PCFs.
Actively expand and grow credit together with improving credit quality, controlling and handling bad debts. Concentrate credit for production and business fields, priority areas, strictly control newly arising bad debts, classify debts and make adequate provisions in accordance with regulations; closely monitor potential debt, structured debt…; strengthen handling of bad debts, thoroughly apply solutions to handle bad debts in Resolution 42/2017/QH14;
Some other key contents also need to be drastically implemented such as: deployment of products and services on digital banking channels, multi-payment card services, 24/7 payment utilities… for PCFs and client. Strictly implement the conclusions after the Inspection and Audit, in which to overcome and thoroughly handle the shortcomings and violations in order to ensure safety in operations. Regularly review and arrangements labor to create a fair and transparent working environment; streamline the payroll for cadres who work ineffectively and fail to complete assigned tasks. Property management, construction investment, procurement, property leasing and branding work must be paid attention, taking care and keep the office place clean and beautiful; equipments and brand signs in accordance with regulations. Strengthen supervision, protection and safety of transaction places, safe work of vaults, transactions, counting, transportation, preservation of money and other assets to ensure absolute safety of employees and properties for the Bank and its customers. Closely coordinate the work of the Party, Trade Union and Youth Union with professional work to implement tasks according to functions and coordinate in implementing Grassroots Democracy Regulations…
Overview of a virtual meeting of Co-opBank
