The effectiveness of using preferential credit sources in Vietnam Bank for Social Policy, Ha Noi Branch
Tran Thi Thu Trang
Major: Finance - Banking
Publishing year: 2015
Supervisors: Assoc.Prof.Dr Vu Cong Ty
Summary of the findings of the thesis:
Thesis, which based on the use of not only systematic and practical approachs but also qualitative and quantitative analysis methods, has evaluated some points on the effectiveness of using preferential credit sources in Vietnam Bank for Social Policies (VBSP), Ha Noi Branch:
In terms of economic effectiveness, Ha Noi Branch used the preferential credit sources in a quite good way. Both of the total capital and loans increased stably; bad debt ratio was low, the credit quality of entrusted loans were high and the local authorities have paied much attention on facilitating Ha Noi Branch.
With regard to the social effectiveness, the use preferential credit sources was efficient, which both contributed well to the poverty reduction program of Ha Noi and improved the life standard of the poor and policy benificiaries, especially the ones who are in rural areas.
However, the effectiveness of using preferential credit sources of Ha Noi Branch still does not reach the best level due to some shortcomings in the operating mechanism.
With an aim to improve these shortcomings, the thesis proposed some solutions to enhance the economic effectiveness of Ha Noi Branch and the social effectiveness in local scale. Moreover, the thesis also mentioned some petitions to the authorities and the Vietnam Bank for Social Policies to concentrate more on facilitating Hanoi Branch in particular and Vietnam Bank for Social Policies in general. Therefore, the effectiveness of using preferential credit sources was reenforced.
Practical applicability, if any:
Currently, the social welfare issue is particularly concerned by the Government. Under this circumstance, VBSP is entrusted by the government with the responsibility of transfering preferential credit sources to the needed one – the poor and policy beneficiaries. By the end of 2014, VBSP had lent nearly 129.456 billion VND with 17 programs and 4 projects. That of Hanoi Branch was 4.721 billion VND. Hence, preferential credit sources and the use of this are particularly important issue.
For these reasons, the thesis, which based on analysing the practical use of preferential credit sources in Ha Noi Branch, proposed some solutions and petitions to improve the effectiveness. Afterwards, Ha Noi Branch can not only conduct more researchs on the solutions, give accurate advice for the local representing of Board of Director to raise the economic and social effectiveness but proposed to the VBSP, which adviced the Board of Director to submit to the Government the needed changes for of using preferential credit sources in a more effective way as well.
Further research directions, if any:
Thesis topic is the effectiveness of preferential credit sources which maily assessed in the bank and local area scales. Therefore, further research directions can be concentrating on the social effectiveness in more particular scale through observing the customers and practical surveys.