THE ENTRUSTED LENDING OF THE BANK FOR SOCIAL POLICY VIA WOMEN’S UNIONS IN BA CHE DISTRICT, QUANG NINH PROVINCE

Abstract

This study analyzes the current issues and proposes solutions to expand the entrusted lending method through the Women's Union in Ba Che district, Quang Ninh province. Data were collected from reports,  household surveys, and in-depth interviews with managers of the Women's Union. The results showed that the entrusted lending method has increased accessibility to bank credit for households with lower transaction costs and risks. This lending method is successful in harnessing local knowledge to address information asymmetries in rural credit markets. The Women's Unions assist the bank to screen creditworthy customers, disburse loans, and advise household members of savings and loan groups in credit use. In addition, training activities are significant to improve production and business capacity for borrowers to use credit more efficiently. Results imply that the expansion of the entrusted lending method is needed to enhance access to credit and investment for rural household economic development.