After 30 years of development, the Co-operative Bank of Vietnam (Co-opBank) has firmly established its pivotal role in connecting and supporting the sustainable and stable growth of the People’s Credit Fund (PCF) system. This three-decade journey not only affirms Co-opBank’s credibility but also showcases its continuous innovation and creativity. From its challenging early days to its remarkable achievements today, Co-opBank has always been a trusted partner for its members and customers. The strong collaboration and enduring partnerships have created numerous development opportunities for the PCF system.
Partnership for development
Co-opBank continues to reaffirm its pivotal role in supporting the stable development of the PCF system, reflected in its positive growth indicators. By the end of 2024, compared to December 31, 2023, the total number of PCF members reached 1,953,510 an increase of 71,718 members (equivalent to 9.63%), total capital grew from VND 183,992 billion to VND 191,865 billion (equivalent to 9.59%), and total outstanding loans to members reached VND 139,140 billion (9.61%). These figures highlight the system’s sustainable growth and the increasing trust of members and customers in the system.
Affirming its role as the central institution for capital regulation within the PCF system, Co-opBank has established a flexible capital harmonization mechanism and a lending framework to address temporary liquidity difficulties, providing timely financial support to PCFs. In 2024, compared to December 31, 2023, Co-opBank’s credit expansion lending to PCFs reached VND 21,510 billion, an increase of VND 3,753 billion; liquidity support loans amounted to VND 261 billion, up by VND 226 billion; and syndicated loans totaled VND 716 billion, an increase of VND 233 billion. The capital harmonization deposits from the PCF system at Co-opBank also showed a strong upward trend, with a balance of VND 46,103 billion in 2024, an increase of VND 2,794 billion (6.45%) compared to 2023. These impressive figures reaffirm Co-opBank’s role as the “Bank of PCFs,” ensuring capital regulation, system connectivity, and enhanced efficiency in capital utilization across the PCF network.
Developing products and services to support PCFs
Under the close guidance of the Board of Management, Co-opBank has proactively developed and effectively implemented procedures, regulations, and guidelines related to supporting PCFs. Co-opBank provides suitable banking products and services, particularly in the field of credit, helping to maintain financial capacity and facilitating PCFs’ access to capital.
In order to help PCFs adapt to the digital transformation trend, Co-opBank continues to focus on research, development, and the provision of digital banking products and services with various conveniences. As of now, 952 out of 1,181 PCFs have joined Co-opBank’s payment network, utilizing services such as 24/7 fast transfers, Mobile Banking, and chip cards. These services offer features like money transfers and bill payments for electricity, water, phone, and internet, enhancing financial management efficiency and delivering modern financial services.
As the central institution, Co-opBank has also implemented the printing, management, and distribution of blank savings books for PCFs as required by the State Bank of Vietnam (SBV). This initiative helps mitigate risks associated with managing and using blank savings books, particularly in preventing off-the-record fund mobilization activities.
Strengthening inspection and supervision
Co-opBank has issued Remote supervision regulations for PCFs, focusing on compliance monitoring, operational risk assessment, and error correction. Through this supervision, branches promptly issue recommendations to PCFs that do not fully meet safety indicators while also reporting operational status to the SBV’s provincial and municipal branches. From 2019 to 2024, Co-opBank successfully completed inspections of 139 PCFs as required by the SBV.
Management and utilization of the Safety Fund; Training and capacity building for PCFs
The Safety Assurance Fund for the PCF System (Safety fund) has been operating safely and effectively. Beyond providing financial support to PCFs facing difficulties, the Safety Fund collaborates with Co-opBank and the Vietnam Association of People’s Credit Funds (VAPCF) to develop training plans and conduct workshops on credit operations, internal control, and internal audit systems for PCFs nationwide. From 2023 to 2024, a total of 1,605 PCFs participated training courses, with 4,559 PCF staff receiving professional training. These critical training programs help PCFs enhance their management capabilities and operate efficiently in a fluctuating market environment.
Annually, the Safety Fund collaborates with Co-opBank to organize an Annual Conference to review the operations of PCFs and assess Co-opBank’s responsibilities and duties toward PCFs. Notably, in 2024, the Safety fund coordinated the organization of PCF Conferences in 27 provinces and cities in the operational area of 16 Co-opBank branches. Through these conferences, Co-opBank promptly identifies challenges faced by PCFs, allowing it to propose policy recommendations to the SBV or amend and supplement Co-opBank’s existing regulations to better align with practical needs.
Enhancing the Co-opBank brand and Accompanying PCFs
In order to ensure standardisation and enhance the credibility of the PCF system, Co-opBank has collaborated with the Safety Fund and VAPCF to develop a unified brand identity for PCFs. This includes refining the logo, signboard, and promotional materials for products and services. Additionally, Co-opBank continuously monitors the operations of PCFs, particularly those facing difficulties, to promptly provide support solutions that ensure the stability of the system.
Towards the Future
Building on the positive achievements, Co-opBank will continue to refine regulations and policies related to PCF operations; strengthen training, inspection, supervision, and internal auditing of PCF activities; adopt a flexible approach to capital regulation; and promote the development of credit products such as syndicated loans, overdrafts, and consumer loans for PCF staff in order to diversify products and enhance support efficiency. Additionally, Co-opBank will further implement digital banking products, expand electronic payment services, and enhance online banking to provide more modern financial services to its members.
With a strategy of cooperation, connection, and close partnership, Co-opBank is committed to delivering practical value to PCFs, customers, and members, contributing to building a strong, modern, and sustainable cooperative financial system.
Some specific images:
Customers conducting transactions at Co-opBank branch
Co-opBank Nam Dinh branch officers advising and introducing digital banking services at PCF Ninh Van (Xuan Truong)
Co-opBank continues to focus on investing in research, developing, and providing digital banking products and services with numerous benefits for PCFs
Co-opBank branch officers are always dedicated to providing guidance and professional support to PCFs
