Standing Deputy Governor of SBV – Mr. Dao Minh Tu noted that at the Co-opBank Annual General Member (AGM) Meeting held on March 27th, 2023 in Da Nang, despite facing many unprecedented developments over the history, beyond the forecasting ability of international organizations and countries around the world, in the recent year, with great efforts of the whole banking industry including the Cooperative Bank of Vietnam (Co-opBank) and the People’s Credit Fund (PCF) system, which have contributed to the socio-economic recovery of Vietnam and achieved many positive results in all areas. Especially, “…as a pillar for the development of the PCF system, in 2022, Co-opBank has continued to perform well its responsibilities and duties towards the PCF system in actively supporting PCFs to develop safely and sustainably…”
A breakthrough year
Mr. Nguyen Quoc Cuong – Chairman of BoD of Co-opBank spoke at the opening of the meeting that the Co-opBank AGM 2022 took place in the context that the banking industry and the PCF system are trying to overcome difficulties in the economics’ operation in Vietnam and over the world. Co-opBank was focusing resources, urgently building and effectively implementing the restructuring plan associated with bad debt settlement in the period of 2021-2025 according to the Government’s orientation in Decision No. 689/QĐ-TTg, direction of SBV in Decision No. 1382/QD-NHNN and implementation of Directive No. 01/CT-NHNN on organizing and implementing of key missions of the banking industry in 2023.
The meeting also assessed the achieved results by Co-opBank in 2022, and pointed out the shortcomings, causes and set out directions, missions for 2023. The meeting would decide on a number of contents authorized by the General Meeting and conduct the election of BoD’s additional members for the third term to appoint the Co-opBank’s CEO. Besides that, the AGM would consider and approve the Co-opBank restructure plan associated with bad debt settlement in the period of 2021-2025, as well as orienting major problems to be a basis for implementing Co-opBank’s activities in 2023 and the following years.
The report at the AGM showed that, in 2022, Co-opBank has continued to perform well its role of connecting the system, providing financial support and ensuring liquidity for the PCF system. Co-opbank also perform well the inspection and supervision activities on PCFs according to SBV’s regulations and directions. In addtion, Co-opBank continued to share difficulties with PCF members, through the lending program “Join hands to support PCF members” with low interest rates (minimum 4.8%/year) for early 10 months in 2022. Co-opBank also continued to implement the policy of loan interest rates for PCFs lower than lending rates for businesses and individuals at all times.
The business plan and financial plan assigned by SBV were basically completed exceededly. Deposit mobilization from residents and economic organizations increased by over 35% – the highest ever. Co-opBank has actively implemented restructuring plan associated with bad debt settlement and basically completed the targets in 2022. The bad debt ratio has always been maintained at a low level (on-balance sheet bad debt ratio was 0.46%); bad debt including structured debt, VAMC sold debt, and risk treated debt was 3.83%.
Co-opBank also appointed 52 officers to directly worked as presidents, directors or join the Special Supervisory Board at difficult PCFs needed to be restructured. Meanwhile, Co-opBank continued to perform well the mission of providing empty savings books for PCFs according to SBV’s regulations.
In 2022, Co-opBank has saved resources, focused on digital transformation and developed a new modern e-banking system for PCFs, thereby improving the accessibility and use of modern payment services to customers and members in rural areas. As of December 31st, 2022, Co-opBank’s payment system had 761 points, including 32 branches, 66 transaction offices and 663 PCFs. In 2022, the number of customer payment accounts increased by 160% contributing to achieving the goal of financial inclusion and non-cash payment according to the Government’s policy.
With the role of supporting PCFs in digital transformation, Co-opBank has prioritized resources to implement the policy of freeing all deployment fees and supporting the operation of products, free all money transfers transactions for members of PCFs joining the e-banking system, free transactions on Co-opBank Mobile Banking application…
The “hinge” meeting for the development strategy of Co-opBank as the pillar of the PCF system
Speaking at the meeting, Standing Deputy Governor of SBV – Mr. Dao Minh Tu acknowledged the results that Co-opBank has achieved in 2022. At the same time, he appreciated the great contents that Co-opBank had implemented and approved by SBV such as: Co-opBank restructuring plan associated with bad debt settlement in the period of 2021-2025; completing the procedures for additional granting of 5,000 billion VND to increase the charter capital for Co-opBank to 8,000 billion VND; a number of adjustment and supplements to the Co-opBank License; comprehensively completed BoD and Management Board. This was a big step for the development strategy of Co-opBank as the pillar of the PCF system.
At the AGM, Deputy Governor – Mr. Dao Minh Tu also acknowledged Co-opBank’s efforts in completing the election of 01 additional member of BoD to appoint to the position of CEO, contributing to Co-opBank comprehensively consolidating all members of BoD and Management Board to improve governance, administration capacity and meet the development requirements in the new period.
In order to contribute together with the whole banking industry to successfully fulfill the assigned political missions in 2023 as well as the whole period of 2021-2025, Deputy Governor Dao Minh Tu emphasized that Co-opBank needed to continue to promote its achieved results to overcome shortcomings, limitations, difficulties, obstacles and focus on drastically implementing solutions and missions assigned in Directive 01/CT-NHNN, Scheme on credit institution system restructure associated with bad debt settlement in the period of 2021-2025, other missions of the banking industry and Co-opBank’s business strategies and plans in the coming time to ensure business efficiency and the roles, responsibilities of connecting the PCFs system.
Effectively deploying the business plan and financial plan for 2023 after being approved by SBV and AGM, striving to fulfill the targets, safe and effective credit growth along with improving credit quality; strictly control credit into potentially risky areas, minimizing new arising bad debts. Co-opbank continued to drastically implement the policy of interest rate support from the State budget for loans of enterprises, cooperatives and business households according to Decree No. 31/2022/ND-CP of the Government with a spirit of highest determination.
Continuing to improve the role and responsibility of Co-opBank in connecting the PCF system, intermediation capital, inspecting, supervising, and ensuring the safety of the PCF system under the law regulations. Researching to support PCFs to attract people to become members and stick with them for a long time. Effectively coordinating with the Vietnam Association of People’s Credit Fund (VAPCF) and SBV’s branches in provinces and cities in training and fostering professional skills for PCFs to improve their management, administration and professional skills, especially training and professional development on the STEP project’s products. Implementing the direction of SBV on the inspection of PCFs in 2023.
With the digital transformation plan, along with the requirement of continuing effective implementation, Deputy Governor Dao Minh Tu directed Co-opBank to focus on investing in upgrading the technology system to promptly meet the requirements of governance in controlling and supervising the operation of Co-opBank and the PCF system. Expanding cooperation, connecting with units inside and outside the banking industry to develop a variety of digital, safe and convenient banking services suitable to Co-opBank’s customers who are PCFs and ones in countryside. Strengthening and improving the quality of human resources to promptly meet the requirements of digital transformation.
Continuing to promote the comprehensive leadership and direction of the Co-opBank Party Committee in all aspects of operations, especially in business activities and building a solid and sustainable collective.
For PCFs, Standing Deputy Governor Dao Minh Tu noted 5 major contents. Firstly, it is necessary to strengthen the consolidation and comprehensive adjustment of all aspects of activities, ensure that they operate according to the principles and purposes of establishment and operation, in which expeditiously develop and submit to the competent authorities for approval the restructuring plan in association with bad debt settlement in the period of 2021-2025 and continuing to effectively implement solutions in the Project on Consolidation and Development of the PCF system until 2020, with a vision to 2030…
Second, strictly complying with the provisions of law and SBV on the PCFs’ operation. Strictly obeying the recommendations and warnings of SBV and Co-opBank, to prevent any wrong activities that affect the PCFs system’s operation.
Third, strengthening the media of SBV’s guidelines and policies on the PCF’s activities, creating conditions for PCFs’ members and people to improve their understanding and actively participating in the management and supervision of PCFs’ operation.
Forth, well and seriously implementing the rights and responsibilities of Co-opBank’s members and VAPCF’s members in order to build a close system connection. Actively coordinating with Co-opBank in developing products and services, improving operational efficiency, operating safety and increasing convenience for PCFs’ members.
With VAPCF, the Deputy Governor directed that it should continue to perform well its role in protecting the legitimate rights and interests of its members. Working closely with SBV and Co-opBank to implement disseminating, propagating and thoroughly grasping the State’s legal policies to its members and supporting members in the process of policy implementation, especially in the scope of training, fostering, improving the quality of human resources and applying information technology, meeting the requirements of governance, administration and risk control of PCFs. Actively capturing and reflecting members’ difficulties, problems and recommendations to the competent authorities for timely removal and handling. At the same time, strengthening connections, building close connection between members in close ties between VAPCF, Co-opBank and PCFs in order to promote the stable and secure development of PCF system.
On behalf of the AGM and the Presidium, Mr. Nguyen Quoc Cuong – Chairman of Co-opBank’s BoD had received the direction of the Standing Deputy Governor Dao Minh Tu and promised to fully implement sufficiently and effectively the contents of the Deputy Governor’s direction for the operation of Co-opBank and the PCF system in the coming time.
Mr. Nguyen Quoc Cuong, Chairman of Co-opBank’s BoD believed that with the effective implementation of the Resolution of AGM in the coming time, it would contribute to creating new strength in the whole system, building and developing Co-opBank to become a a modern bank, operating safely and effectively to fulfill the role as the bank of all PCFs; PCF system would operates stably, safely and sustainably according to the objectives and principles of the cooperative credit institution type.
At the AGM, the delegates elected Ms. Pham Thi Hong Minh – to become a member of Co-opBank’s BoD and CEO. She was an officer who came up from the grassroots, used to be an officer of the SBV Ha Nam branch, Co-opBank Ha Nam branch, then Deputy CEO of Co-opBank. Thereby, Co-opBank has consolidated personnel for key positions in Co-opBank’s BoD to have a basis for Co-opBank to continue improving its governance and management capacity to meet the development requirements in the future new phase.
Some pictures at the Co-opBank General Member Meeting 2022:
SBV Standing Deputy Governor Dao Minh Tu delivered a direction speech at the meeting
Mr. Nguyen Quoc Cuong – Chairman of the Board of Directors of Co-opBank spoke at the Conference
Standing Deputy Governor of SBV – Mr. Dao Minh Tu and Vice Chairman of the Vietnam Cooperative Alliance Nguyen Manh Cuong, Mr. Nguyen Quoc Cuong – Chairman of the Board of Directors of Co-opBank congratulated the new member of the Board of Directors and CEO Pham Thi Hong Minh at the meeting
Standing Deputy Governor Dao Minh Tu awarded certificates to typical PCFs that performed well in system connection in 2022.
PCFs were honored with typical members who performed well the system connection in 2022 at the meeting.
General Member Meeting overview
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