The year 2025 has been identified as a pivotal milestone in the roadmap to consolidate and strengthen the operational quality of the People’s Credit Fund (PCF) network. Amid persistent economic headwinds and evolving challenges — and in response to the imperative to manage risk, safeguard system stability, and embrace digital transformation — the capital intermediation role of the Co-operative Bank of Vietnam (Co-opBank) has grown increasingly prominent. Capital intermediation activities in 2025 have not only addressed immediate funding requirements but also established a solid foundation for the stable and sustainable development of the PCFs network in 2026 and beyond.
In their day-to-day operations, People’s Credit Funds (PCFs) frequently face temporary capital imbalances arising from seasonal factors, local specificities, and members’ borrowing needs. In 2025, as production and business activities among household-based economic sectors, small traders, and small enterprises continued to recover, credit demand in many localities increased markedly. In this context, Co-opBank further strengthened its role as the capital intermediation hub of the entire system by proactively identifying funding requirements and flexibly and promptly regulating and reallocating capital, thereby enabling PCFs to maintain stable and seamless operations.
Mr. Nguyen Quoc Cuong – Chairman of the Board of Directors of Co-opBank delivered remarks at the working session of the Co-opBank delegation at Vi Xuyen PCF, Tuyen Quang province.
In 2025, intermediated deposits from PCFs grew by 7.15%, further affirming the PCF network’s confidence in Co-opBank as the central hub for capital intermediation and liquidity assurance. Notably, outstanding loans extended to PCFs surged by 77.98% over the same period, reinforcing Co-opBank’s function as a timely and effective provider of capital — thereby contributing to liquidity safety and operational stability across the PCFs network.
Co-opBank consistently maintained term deposit interest rates for PCFs above those offered to non-system customers, incentivizing PCFs to place regulated deposits and optimize the deployment of idle funds. Correspondingly, lending rates applied to PCFs were set below those extended to corporate and individual borrowers, enabling PCFs to reduce funding costs, strengthen their financial capacity, and enhance their ability to serve members effectively.
Ms. Pham Thi Hong Minh – Member of the Board of Directors and General Director of Co-opBank and leaders of the SBV Region 12, presented commendations to PCFs that effectively carried out capital intermediation activities in 2025 within the area managed by Co-opBank Thai Binh branch
Throughout the year, Co-opBank adjusted its deposit interest rates on nine separate occasions, responding flexibly to market developments and the evolving needs of the system. As a result, lending rates for PCFs declined by an average of 0.33% per annum, while the average interest rate on regulated deposits rose by 0.36% compared to end-2024. These timely and well-calibrated adjustments helped align the interests of Co-opBank and its member PCFs, while generating momentum for more efficient capital flows throughout the network.
Notably, in its capacity as the central bank of the PCFs network, Co-opBank implemented targeted support measures for PCFs subject to enhanced supervision, early intervention, or special control. Specifically, eligible PCFs were permitted to withdraw regulated deposits prior to maturity while retaining term deposit interest rates corresponding to their actual deposit periods. In parallel, preferential interest rate policies on intermediated deposits were applied to provide financial relief, enabling these PCFs to recover more swiftly and return to normal operations.
This policy carries profound practical and humanitarian significance, embodying a spirit of partnership and financial solidarity within the system. It has enabled PCFs to promptly address liquidity needs, stabilize operations, and progressively strengthen their financial capacity and governance standards. Through these efforts, Co-opBank has not only supported individual institutions but also played a pivotal role in safeguarding the overall stability of the PCF network as a whole.
A further highlight of capital intermediation activities has been the proactive and flexible approach to capital management. Beyond supporting PCFs facing liquidity difficulties, Co-opBank intensified its forecasting efforts and closely monitored cash flow developments across the network, thereby formulating well-calibrated capital allocation plans tailored to each operational stage. This forward-looking approach helped mitigate localized liquidity pressures, while empowering PCFs to expand their credit activities with greater confidence and more effectively meet the funding needs of their members.
In 2025, Co-opBank also continued refining its capital intermediation mechanisms and policies in pursuit of greater transparency, standardization, and alignment with modern governance requirements. Operational procedures were reviewed and recalibrated to enhance the timeliness, accuracy, and effectiveness of capital transfers. Through sustained and effective capital intermediation activities, the financial capacity and risk resilience of the PCF network were progressively strengthened. PCFs gained greater autonomy in formulating business plans, expanding credit in accordance with sound risk management principles, and reducing dependence on short-term local fundraising.
Importantly, capital intermediation activities in 2025 further solidified the confidence of members, depositors, and the broader community in the PCFs network. The timely and consistent support extended by Co-opBank enabled PCFs to reaffirm their role as a safe, community-rooted, and effective financial channel — one that remains responsive to the needs of local economies and the people they serve.
Co-opBank’s capital intermediation activities in 2025 contributed to strengthening the confidence of members, depositors, and the community in the PCF network
Building on the results achieved in capital intermediation, Co-opBank is well positioned to further strengthen its management capacity, sharpen forecasting quality, and develop differentiated capital intermediation scenarios tailored to a range of market conditions. In parallel, the deeper integration of capital intermediation activities with digital transformation initiatives and robust risk governance frameworks will enable Co-opBank to more fully and effectively discharge its role as the central bank of the PCFs network — and as a steadfast pillar of the system’s long-term stability – in the period ahead.
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As 2026 unfolds, and as expectations around system safety, governance standards, and service quality continue to rise, the foundation established through capital intermediation activities will serve as a critical enabler for Co-opBank and its member PCFs to adapt with confidence and foresight. In its capacity as the central hub for capital intermediation, Co-opBank remains committed to accompanying and supporting PCFs on their path toward stable and sustainable development — and, in doing so, to making meaningful and lasting contributions to socio-economic progress at the local level.
Capital and Financial Markets Department of Co-opBank
