Evaluating the Group Lending Development at the Vietnam Bank for Agriculture and Rural Development: A Case Study in Bac Giang Branch II

Nội dung text: Evaluating the Group Lending Development at the Vietnam Bank for Agriculture and Rural Development: A Case Study in Bac Giang Branch II

1. ISSN 2588-1299 VJAS 2020; 3(3): 679-688 Vietnam Journal of Agricultural Sciences Evaluating the Group Lending Development at the Vietnam Bank for Agriculture and Rural Development: A Case Study in Bac Giang Branch II Do Quang Giam1, Dao Thi Hoang Anh1, Vu Ngoc Huyen1, Lai 1 2 3 Phuong Thao , Dao Huu Bao & Do Thi Minh Van 1Institute Faculty of Accounting and Business Management, Vietnam National University of Agriculture 2The Vietnam Bank for Agriculture and Rural Development-Bac Giang Branch II 3Master student, University of Paris Dauphine & ESCP Europe Abstract Group-based lending is a form of loan provision for individuals and households in rural areas for production and consumption purposes. Proceeding from the imbalance between demand and supply on small-scale capital, and also Government policies on sustainable poverty reduction, the Vietnam Bank for Agriculture and Rural Development (Agribank) has coordinated with its local authorities and socio-political organizations to provide loan services via group lending. The purpose of this paper was to evaluate the status of group lending development of the Agribank-Bac Giang Branch II. The paper used secondary data collected from the branch and primary data gathered from 50 representative customers and 10 credit officers related the group lending of the branch. Data analysis methods consisted of descriptive statistics and comparative analysis, incorporated with the measurements for bank performance and quality. The findings show positive prospects in both the bank and customers for the development of group lending activity and obstacles in the group lending development of the branch. The paper also proposes some solutions for the branch to tackle difficulties and promote the development of group lending in the branch in Bac Giang province. Keywords Group lending development, microfinance, microcredit, Agribank, Vietnam Introduction Received: June 1, 2020 Accepted: November 10, 2020 Microfinance has developed in many countries for decades since Correspondence to it first appeared and succeeded in 1976 in Bangladesh with the dqgiam@vnua.edu.vn purpose of poverty reduction, and since then, has propagated to several 679
2. Evaluating the group lending development at the Vietnam Bank for Agriculture and Rural Development neighboring countries (Odongo & Lilian, 2013). Currently, the branch targets lending for Nowadays, it has become a useful tool for agricultural production and rural development to reducing poverty, enabling poorer households to gain benefits from the lending purposes, while build assets, increasing incomes, and decreasing narrowing down lending for nonproductive ones. a family’s vulnerability to shocks. In Vietnam, Additionally, the number of targeted customers microfinance is identified as a credit service that of the branch is huge with small loan demands provides low-income households and individuals over short periods of time, so the branch has to with small loans without guaranteed assets to cover many administrative expenses for lending. help them engage in productive activities or The main difficulties of the branch’s lending are small start-up businesses, contributing to their the large operation area, inconvenient enhancement of income and living conditions infrastructure, far distances from the bank office (Vietnamese Government, 2005). The formal to clients, and so on. Meanwhile, the procedures system, organized from the central Government for getting bank loans are complicated, and client to the local levels in Vietnam, consists of the management of the credit officers at localities is People’s Credit Funds, Vietnam Bank for Social limited, so the branch does not meet the demand Policies, and Agribank. The involvement of for the loans of clients timely and adequately. To commercial banks in microfinance is extremely overcome the difficulties, the Agribank-Bac necessary to extend credit to meet the needs of Giang Branch II has carried out a group based households (Robin et al., 2002). Although the lending program. However, the share of poor or low-income residents have great demand outstanding loans via the lending groups in the for financial services such as credit, savings, and total as well as the group lending amount per insurance, it is very difficult for them to access client remain low. Up to now in Vietnam, no credit by themselves, especially from formal published articles have shown the development credit sources, therefore, getting a loan via a of group lending in potential provinces for lending group becomes a better solution for this agricultural production. Thus, the purpose of the problem. Realizing the importance and paper was to evaluate group lending significance of lending groups, the President of development of the Agribank-Bac Giang Branch Agribank issued regulations on lending for II in order to propose solutions to tackle households and individuals through the difficulties, foster credit growth, meet loan group/mobile group in the Agribank system demands timely, and improve credit quality via (Agribank, 2016). Accordingly, lending groups group lending at the branch. were voluntarily established from households and individuals living in the same settlement or Literature Review unit, managed by the Vietnam Farmer’s Union, Microfinance has developed in many Vietnam Women’s Union, and other socio- countries around the world and has contributed political organizations. The strength of this significantly to poverty reductions, income model is that Agribank has cooperated with these increments, and living condition improvements organizations to effectively provide loans to meet of the poor and people in rural and mountainous the needs of households and individuals via the areas. According to the Food and Agriculture lending groups. Through these organizations, the Organization of the United Nations, borrowers are guided to plan and manage microfinance is providing basic financial consumption, investments, and income, as well services to poor and low-income households and as to cope with risks. their micro-enterprises through several financial The Agribank-Bac Giang Branch II was tools, i.e., savings, credit, leasing, insurance, and selected for a case study since the branch is one cash transfers (FAO, 2005). Meanwhile, the of the biggest commercial banks in Bac Giang World Bank (2013) defines microfinance as an province. In general, clients of the branch are economic development approach that benefits small farm households living in rural and low-income women and men. Regarding the mountainous areas in Bac Giang province. forms of microfinance, Ledgerwood (1999) and 680 Vietnam Journal of Agricultural Sciences
3. Do Quang Giam et al. (2020) Odongo & Lilian (2013) indicated that group experiences. While group lending forces lending can be divided into two types: (i) the first borrowers to interact with one another, there is a one is implemented by depositors such as shared responsibility, so the benefits of group commercial banks and institutions that only lending increase over individual lending. Ghatak accept deposits but do not perform credit (2000) theorized that if borrowers differ in functions i.e., mutual savings banks, credit unobserved risk, evaluating group-based general unions, credit cooperatives, or unofficial liability contracts would be riskier than organizations; and (ii) the second category individual contracts, provided that lenders have includes rotating social savings activities, club to match borrowers of similar risk to the same groups, or financial service associations. De group. But when a borrower has borrowed for a Quidt et al. (2018) considered group lending in sufficient period from a lender, leading to more the context of commercialization, including for- thorough observations and conclusions about profit and non-profit lending. The introduction of loan risk, the benefits of group lending diminish. a group-based lending model was implemented Therefore, the study also showed that group by microfinance institutions as a solution to lending was valuable to newly established reducing the risk of low-value personal loans microfinance institutions or microfinance (Armendariz & Morduch, 2007). For more detail, institutions seeking to attract new customers or Godquin (2004) and Madajewicz (2011) argue expand to different environments. From the that group lending helps minimize risks because perspective of the lender, research has shown that people in the same loan group are linked by the real-world lending model is useful in limiting mutual responsibility, and if one of them fails to the lack of information on some segments of the comply with the loan terms such as converting population and reducing the shortage of social investment objects (for instance, from safe capital. subjects to higher risk subjects), then other In Vietnam, as well as other developing members of the group will have a higher countries, the role of access to credit for probability of being exposed to risks. Therefore, individuals shows the capability of encouraging this gives members the motivation to monitor production through supplying input materials, each other. In another study, Dellien et al. (2005) enhancing living standards, and being the crucial showed that to conduct lending through mechanism for overcoming income shocks. microfinance institutions, it was necessary to Globalization has brought Vietnam many invest time and effort in building social networks opportunities, but it has caused many challenges for reliable member selection. According to the for Vietnamese people, especially those who live criteria of each lending group, the lender's role in remote areas. Therefore, micro-credit was to provide information about the structure of development is an objective requirement to the loan group, provide training on the loan ensure thorough growth and to provide all clients process, and support administrative procedures in society access to financial services. However, for the loan group. Savita (2007) and Maria when the proportion of individuals using formal (2009) argued that group lending would incur credit was low (about 18.4%), the reasons were additional costs for group formation, training, limitations of income and geography (Khanh et monitoring, and supervision that may be al., 2018). To remove these barriers, Agribank ineffective as social relationships are lax. has regulated group lending for households and Ahlin & Suandi (2019) debated that group individuals towards increasing loans and lending was widely used in countries, lower- expanding clients (Agribank, 2016). Besides this, income areas, and low-growth economies. As Nguyen Tho Quang Anh & Tran Dinh Thao such, this model is suitable for lending (2017) state that community-based microfinance environments. Also in this study, Grameen Bank, is considered a feasible mechanism to provide one of the two pioneers of microfinance, moved financial services in remote areas in Vietnam, from the group lending model to individual loans and the lending method of village savings has after having better financial conditions and more been shown to be a suitable mechanism for poor 681
4. Evaluating the group lending development at the Vietnam Bank for Agriculture and Rural Development households to access small loans. In order to for developments in loan quantity (Figure 1). target the goal of poverty reduction and implement the new rural development program, Data collection the members of the lending group are allowed to In order to evaluate the performance of join in training courses on production techniques, group lending activities, this research used both and agriculture, forestry, and fishery extensions; secondary and primary data. The secondary data they have also serviced input materials and were obtained from the published financial product consumption, etc. As reported by statements and performance reports of the Agribank, the number of lending groups in the Agribank-Bac Giang Branch II to analyze and whole country in 2018 reached 53,481, an evaluate the development aspects of group increase of 2.1% as compared to that of 2017. lending on the width, depth and timeline from Total loans provided via lending groups reached 2016 to 2018. The primary data were collected 102,125 billion VND in 2018, an increase of from 50 representative customers of the groups 12.46% as compared to 2017, while the bad debt and 10 credit officers of the branch who closely ratio was low and slightly increased from 0.31% in work with the lending groups about their 2017 to 0.33% in 2018 (Agribank, 2019). These evaluations on service quality of the lending results show a positive performance in the lending group, using 5-point Likert scale structured groups of the Agribank system; however, Agribank questionnaires. needs to control and reduce the bad debt. Data analysis In the research, we employed descriptive Data and Methods statistics and comparative analysis methods Conceptual framework incorporated with measurements for bank performance and quality, i.e. growth of total In our study, we applied a multi-dimension outstanding loans, share of total outstanding approach for evaluations on the group lending loans, bad debt ratio, and group lending activities, development at the Agribank-Bac Giang Branch to clarify the situation, and evaluate the II in Bac Giang province such as width-depth and performance and service quality of the group timeline-space of its loan products, based on lending activities. Using the measurements of bank quality criteria for loan performance performance via quantitative ratios has been used measurements and loan service quality, and criteria frequently in reality (Mabwe & Robert, 2010). Loan performances Loan service quality Developments via timeline -space, width- depth/quantity- quality Number of Amount of Forms of groups loans credit Figure 1. Dimensions for group lending development evaluation at the bank 682 Vietnam Journal of Agricultural Sciences
5. Do Quang Giam et al. (2020) Results and Discussion the total was not much different from the lending groups managed by the Women’s Union (Table In this section, we provide evaluations on the 2), however, the differences were expended in group lending development of the Agribank – Bac 2017 and 2018. The value of the outstanding Giang Branch II in Bac Giang province in the loans showed rapid growth in all the districts in period of 2016-2018 in different dimensions of the period of 2016-2018, except in the urban zone development such as timeline-space, quantity- of Bac Giang city where slow growth was quality, and width-depth of its loan products. observed. The main purpose of lending was for Evaluating the group lending development of agricultural production and business activities, Agribank- Bac Giang Branch II accounting for 79.98%, 75.00%, and 72.00% of the total group lending in 2016, 2017, and 2018, On the growth in the number of lending groups respectively. The loan demands for short- or With the implementation of the medium-term and long-term loans tended to interdisciplinary agreement between Agribank increase over the 3-year period. and the Vietnam Farmer’s Union and the It can be seen that the appearance of group Vietnam Women’s Union, while enlisting the lending helped individuals and households support of the local government at various levels, access credit that they were not eligible to borrow the number of lending groups at the Agribank- formerly. In addition, according to Decree No. Bac Giang Branch II tended to increase during 55/2015/ND-CP and Decree No. 116/2018/ND- the period of 2016-2018 with an average growth CP on amending some articles of Decree No. rate of 4.53% (Table 1). Encouraging 55/2015/ND-CP about the credit policies in households and individuals to join the lending agriculture and rural development, it is not groups not only brought them economic benefits, necessary to have collateral when borrowing if but also contributed to the reduction of the the size of the loans is within the permitted limits number of direct transactions and work pressure (Vietnamese Government, 2015). From the of the branch officers, and improved the bank’s point of view, deploying formal loans productivity and quality of customer services. through group lending has captured the credit On the structure and growth of loan demands for the production, businesses, and formalities via group lending consumption of borrowers in a timely manner, As indicated in Table 1, in 2016, although thereby preventing borrowers from seeking out the majority of the lending groups of the branch black market credit since the majority of loans were managed by the Farmer’s Union, 555 out of provided for clients via groups were without 722, equivalent to 76.87% of the total number of collateral, about 90% in average in the period of groups, the proportion of its outstanding loans in 2016-2018 (Table 2). Table 1. Number of lending groups of the branch in 2016-2018 2016 2017 2018 Diff. (%) Norm #groups % #groups % #groups % 2017/16 2018/17 Total lending 722 100 755 100 789 100 4.57 4.50 groups Managed by Farmer’s 555 76.87 589 78.01 621 78.71 6.13 5.43 Union Managed by Women’s 145 20.08 146 19.34 153 19.39 0.69 4.79 Union Managed by other 22 3.05 20 2.65 15 1.90 -9.09 -25.00 organizations Source: Agribank-Bac Giang Branch II (2019) 683
6. Evaluating the group lending development at the Vietnam Bank for Agriculture and Rural Development Table 2. Loan structures and growths via group lending in 2016-2018 2016 2017 2018 Diff. (%) Norm Value Value Value (mil. % (mil. % (mil. % 2017/16 2018/17 VND) VND) VND) Total outstanding loans 750,665 100 930,238 100 1,226,545 100 23.92 31.85 1. Classified by deposit funds Via Farmer’s Union 417,575 55.63 590,630 63.49 777,492 63.39 41.44 31.64 Via Women’s Union 317,825 42.34 326,556 35.10 438,850 35.78 2.75 34.39 Via other organizations 15,265 2.03 13,052 1.40 10,203 0.83 -14.50 -21.83 2. Classified by districts Headquarter 25,688 3.42 26,888 2.89 28,665 2.34 4.67 6.61 Luc Ngan 135,998 18.12 199,462 21.44 235,998 19.24 46.67 18.32 Lang Giang 110,555 14.73 155,666 16.73 196,892 16.05 40.80 26.48 Yen The 88,688 11.81 103,442 11.12 166,882 13.61 16.64 61.33 Son Dong 85,163 11.35 98,223 10.56 155,222 12.66 15.34 58.03 Luc Nam 191,707 25.54 202,336 21.75 255,663 20.84 5.54 26.36 Bac Giang City 43,868 5.84 45,665 4.91 48,665 3.97 4.10 6.57 Bo Ha 68,998 9.19 98,556 10.59 138,558 11.30 42.84 40.59 3. Classified by purposes For agricultural, production, and business 600,352 79.98 697,678 75.00 883,112 72.00 16.21 26.58 For consumption 150,313 20.02 232,560 25.00 343,433 28.00 54.72 47.68 4. Classified by forms of guarantee Without collateral 701,356 93.43 837,556 90.04 1,021,338 83.27 19.42 21.94 With collateral 49,303 6.57 92,682 9.96 205,207 16.73 87.98 121.41 5. Classified by loan terms Short and medium terms 287,505 38.30 384,188 41.30 570,343 46.50 33.63 48.45 Long-term 463,160 61.70 546,050 58.70 656,202 53.50 17.9 20.17 Source: Agribank-Bac Giang Branch II (2019). Evaluating the performance of group lending lending activities attracted the participation of development of Agribank- Bac Giang Branch II individuals and households. The average loan size per member of the groups was about 40-60 Table 3 shows that the ratio of total million VND over the period, within the outstanding loans to total deposited amounts at permitted limits from the confirmed information the Agribank-Bac Giang Branch II increased of loans without collaterals (the highest limit was over 3 years (2016-2018), and reached 81.29% in 100 million VND). The bad debt ratios of the 2018, which is a little bit lower in comparison to group lending at the branch were small and had a the average of the Agribank system in 2018 decreasing trend over the period, especially in (84.84%) (Agribank, 2019). For the group 2018 when it was only 0.17%, lower than that of lending activities, although it accounted for a the direct lending method (0.53%) (Agribank, small proportion of the total outstanding loans, 2019). there was an increasing trend over 3 years (from 11.3% in 2016 to 13.4% in 2018). The growth Evaluating the service quality of the group rate of outstanding loans through group lending lending was remarkable (23.92% and 31.85% in the In this section, we use primary data collected period of 2016-2018), showing that the group from 50 representative customers and 10 credit 684 Vietnam Journal of Agricultural Sciences
7. Do Quang Giam et al. (2020) Table 3. The performances of group lending at the branch in 2016-2018 No. Norm Unit 2016 2017 2018 1 Total deposits mil. VND 8,466,000 9,816,000 11,308,000 2 Total outstanding loans mil. VND 6,635,000 7,807,000 9,192,000 3 Outstanding loans of the group lending mil. VND 750,665 930,238 1,226,545 4 Number of members persons 18,050 20,630 22,491 5 Bad debt of the group lending mil. VND 1,880 2,050 2,080 6 Growth of loans via the group lending % - 23.92 31.85 7 Total outstanding loans/Total deposit= (2)/(1) % 78.37 79.53 81.29 Outstanding loans of the group lending/ Total 8 % 11.314 11.915 13.344 outstanding loans = (3)/(2) 9 Average outstanding loans/Member = (3)/(4) mil. VND 41.59 45.09 54.53 10 Bad debt ratio of group lending = (5)/(3) % 0.25 0.22 0.17 Source: Agribank-Bac Giang Branch II (2019) Table 4. Cronbach’s Alpha Test Factors Cronbach’s Alpha 1. For credit officers - Loan process and services quality 0.8523 - Information technology 0.8073 2. For representative customers - Quality of the group lending product 0.7155 officers as mentioned above to evaluate the and stages. Therefore, in order to shorten the service quality of the group lending according to process and improve the service quality, most of the following criteria: the bank staff participated in short-term training For the 10 credit officers: (i) Loan process courses on these issues organized at the and services quality with 4 observed variables; Agribank-Bac Giang Branch II. However, the (ii) Information technology with 2 observed most important issue limiting the enthusiasm at variables; work is that the remuneration policy is not For the 50 representative borrowers of the appreciated by the credit officers. Besides, groups: Quality of the group lending product operation on the IPCAS system is sometimes with 6 observed variables. very slow due to unstable internet connection quality, so this reduces the performance of the Calculation results of Cronbach’s Alpha credit officers (Table 5). coefficients in Table 4 show that Cronbach’s Alpha is satisfactory (>0.6) and the observed variables have a total correlation coefficient of Evaluations from the customers of the group over 0.3. Therefore, it can be concluded that the lending variables used in this study are appropriate and Under the implementation of group lending, reliable (Nunnally & Bernstein, 1994). access to bank loans for individuals and households has increased. Table 6 indicates that Evaluations from the credit officers engaging although the credit officers serve devotedly, in the group lending customers of the group lending still believe that The credit officers assessed that it was not so the loan process and procedures are quite convenient and simple to complete a loan complicated. It takes time for filling out and application due to the large number of documents appraising applications to complete all the 685
8. Evaluating the group lending development at the Vietnam Bank for Agriculture and Rural Development Table 5. Evaluation of the credit officers for the group lending quality Scale (%) Criterion Strongly Disagree Neutral Agree Strongly Mean disagree (1) (2) (3) (4) agree (5) 1. Loan process and services quality - Loan application is simple and fast 0.0 30.0 40.0 20.0 10.0 3.1 - Loan procedure is quick 0.0 10.0 50.0 20.0 20.0 3.5 - Credit officers are trained with improved 0.0 0.0 30.0 60.0 10.0 3.8 qualifications - Remuneration policy encourages credit 0.0 0.0 70.0 20.0 10.0 3.4 officers 2. Information technology - IPCAS system can satisfy management 0.0 0.0 70.0 30.0 0.0 3.3 requirements - Internet quality is very good 0.0 50.0 40.0 10.0 0.0 2.6 Source: Surveyed data (2019) Table 6. Evaluations of the representative customers of the lending groups Scale (%) Criterion Strong Disagree Neutral Agree Strong Mean disagree (1) (2) (3) (4) agree (5) - Loan process is simple 0.0 26.0 50.0 20.0 4.0 3.0 - Service attitude is whole-hearted and 0.0 0.0 16.0 40.0 44.0 4.3 thoughtful - Levels of the loans and interest of the group lending is reasonable 0.0 16.0 56.0 24.0 4.0 3.2 - Level of commission for the group leader is reasonable 0.0 32.0 44.0 24.0 0.0 2.9 - Number of members in each lending group is reasonable 0.0 16.0 44.0 40.0 0.0 3.2 - Utilities and services accompanying the loan packages are reasonable 0.0 46.0 54.0 0.0 0.0 2.5 Source: Surveyed data (2019) the procedures. While the levels of the loans and packages are limited or not available, i.e., interest of the group lending are considered to be technology transfer or agricultural technique quite reasonable for small farms, some big farm guides, so the agricultural activities of households want to expand the loan sizes since individuals and households are still based on each member of the group basically borrows their experiences, and this can easily lead to within the permitted limits without collateral. increased credit risk and decreased credit service The commission paid to the group leader has not quality. yet been associated with the credit quality criteria, and the commission level is not Conclusions attractive to encourage the group leader to present their responsibility to monitoring the With the focus on expanding the formal activities of the group. Customers also reported credit activities according to the government that the number of group members is really policies, development of group lending at appropriate. However, the products and services Agribank-Bac Giang Branch II has achieved of the group lending associated with the loan certain results. The credit balance has been 686 Vietnam Journal of Agricultural Sciences
9. Do Quang Giam et al. (2020) expanded while the proportion of outstanding regulations for households and individuals via lending loans via group lending has increased in recent groups, linkage groups, mobile lending groups applied years. This reduces the workload of credit in the Agribank system (in Vietnamese). officers. In addition, the bad debt ratios of the Agribank (2019). Annual report of Agribank 2018 (in Vietnamese). group lending are controlled at low levels and have a downtrend over the years, which Agribank-Bac Giang Branch II (2019). Annual reports (2016, 2017, 2018) of the Agribank- Bac Giang Branch contribute to the reduction of the overall bad II (in Vietnamese). debts ratio of the branch and consequently Ahlin C. & Suandi M. (2019). A master of experience? increase the credit quality. However, through the Understanding the decline in group lending. Oxford evaluations of customers and credit officers of Bulletin of Economics and Statistics. 81(6): 1252- the group lending, some obstacles limit 1279. DOI: 10.1111/obes.12305. development of group lending such as the Armendariz B. & Morduch J. (2007). The Economics of complexity of loan documents, lack of customer Microfinance. MIT Press, Cambridge, MA. information management, unspecified Dellien H., Burnett J., Gincherman A. & Lynch E. (2005). regulations in the loan packages, and ineffective Product diversification in microfinance: Introducing individual lending. Women’s World Banking Report, attraction to customers of the group lending. New York: 1-36. In order to strengthen the group lending De Quidt J., Fetzer T. & Ghatak M. (2018). development for the branch in Bac Giang Commercialization and the decline of joint liability province, some crucial policy implications microcredit. Journal of Development Economics. 117: should be considered by the government and 119-133. president of Agribank such as (i) Building FAO (2005). FAO Forestry Paper 146: Microfinance and flexible lending mechanisms by improving loan forest-based small-scale enterprises. Food and Agriculture Organization of the United Nations, Rome, processes and procedures; diversifying lending ISBN 92-5-105412-6, 88p. methods; increasing the level of loans without Ghatak M. (2000). Screening by the company you keep: collateral or considering the form of security with Joint liability lending and the peer selection effect. future properties to create favorable conditions Economic Journal. 110(465): 601-631. for borrowers in accessing bank loans; (ii) Godquin M. (2004). Microfinance repayment performance Consolidating and perfecting the network of in Bangladesh: How to improve the allocation of loans customer information collection and processing by MFIs. World Development. 32: 1909-1926. for common use of the bank in order to reduce Hoang Cong Gia Khanh, Nguyen Thi Canh, Le Ho An the time for loan processing; (iii) Improving the Chau, Nguyen Thanh Liem, Hoang Trung Nghia, Dao capability of credit officers in particular and bank Thi Ngoc, Nguyen Ton Nhan, Nguyen Anh Phong, Nguyen Thi Dan Que, Pham Phu Quoc, Tran Hung officers in general based on the criteria of Son, Nguyen Hong Thang, Nguyen Dinh Thien, Tran recruiting new employees, and requiring staff to Quang Van & Pham Thi Thanh Xuan (2018). Annual participate in professional training courses; (iv) report 2017 on financial market: Access to finance. Ho Strengthening the implementation and Chi Minh City National University Publishing House, coordination between banks, local authorities, 162p (in Vietnamese). and social associations through seminars, and Ledgerwood J. (1999). Microfinance Handbook: An Institutional and Financial Perspective (Sustainable improving the responsibilities of the parties to Banking with the poor). The World Bank, Washington, achieve common benefits; and (v) Introducing D.C., ISBN 0-8213-4306-8, 262p. mechanisms on commission levels to the group Mabwe K. & Robert W. (2010). A financial ratio analysis leaders by linking the payments to certain of commercial bank performance in South Africa. performances in order to create pressure for them African Review of Economics and Finance. 2(1): as well as leverage that stimulates the development 30-53. of the group lending, e.g., reducing overdue debts, Madajewicz M. (2011). Joint liability versus individual liability in credit contracts. Journal of Economic bad debts, and actual interest rates. Behavior and Organization. 77: 107-123. Maria L. (2009). Group lending versus individual lending in microfinance. Discussion paper No. 299. University References of Munich. Agribank (2016). Decision No. 5199/QD-NHNo-HSX Nguyen Tho Anh & Tran Dinh Thao (2017). Evaluating the issued on December 30, 2016 on the lending impact of village savings and loans model on living 687
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