Recently, the Chief Inspector and Supervisor of the State Bank of Vietnam, Ha Nam Province Branch, issued an Inspection Conclusion on the inspection of credit granting activities at the Transaction Office of the Vietnam Bank for Social Policies (VBSP) in Thanh Liem District (Ha Nam).
Some limitations in lending activities of Thanh Liem Social Policy Bank Transaction Office have been pointed out, as follows:
Borrowers self-declared their income to build new houses, but the income confirmation had an additional signature from a person without the function/authority to confirm, which was inappropriate;
Customers buying social housing (apartments) under the Sales Contract are future assets that have not been granted House Ownership Rights;
It is not objective for a loan examiner to conduct an examination of his own loan.
However, the lending activities of the Thanh Liem Social Policy Bank Transaction Office have basically implemented the lending regulations according to the Government's lending programs and the instructions of the Vietnam Social Policy Bank. At the same time, the Thanh Liem Social Policy Bank Transaction Office has not committed any violations of the law in its credit granting activities.
The Chief Inspector and Supervisor of the State Bank of Vietnam requested the Thanh Liem Social Policy Bank Transaction Office to implement 3 recommendations on credit granting activities and 1 recommendation for the Vietnam Social Policy Bank.
At the time of receiving the inspection, Thanh Liem Social Policy Bank had 12 Government loan programs in 16 communes and towns, with outstanding loans of VND 574,021 million. Of which, the loan program for poor households had outstanding loans of VND 4,735 million, accounting for 0.82% of the total outstanding loans; outstanding loans for support loans for job creation, maintenance and expansion were VND 131,592 million, accounting for 22.92%; outstanding loans for social housing were VND 48,851 million, accounting for 8.51%.
Debt overdue from 91 to 180 days in debt group 3 is 106 million VND; debt overdue from 181 to 360 days in debt group 4 is 50 million VND; debt overdue over 360 days in debt group 5 (debt with potential loss of capital) is 409 million VND.
