What is a microfinance institution?
Clauses 1 and 5, Article 4 of the Law on Credit Institutions 2010 provide for microfinance institutions as follows:
“1. Financial organization is an enterprise that carries out one, several, or all banking activities. Financial organizations include banks, non-bank credit institutions, microfinance institutions, and people’s credit funds.
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5. Microfinance institution is a type of financial institution that mainly conducts a number of banking activities to meet the needs of individuals, low-income households, and micro enterprises.”
Thus, a microfinance institution is a type of credit institution that performs banking activities in accordance with current laws to meet the needs of low-income individuals and households. micro-enterprises.
What is the form of establishment of a microfinance institution?
Pursuant to the provisions of Clause 6, Article 6 of the Law on Credit Institutions 2010, a microfinance institution may be established and organized in the form of a limited liability company, which may be a one-member limited liability company or limited liability company with two or more members.
“Article 6. The organizational form of credit institutions
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6. Microfinance institutions are established and organized in the form of limited liability companies.”
What is the CEP Microfinance Institution?
CEP Microfinance Institution was founded by the Ho Chi Minh City Labor Confederation, the Ho Chi Minh City People’s Committee issued a decision to establish it on November 2, 1991. CEP operates in a non-profit form with the mission of working for poor workers and low-income people to contribute to ensuring social security through the provision of financial and non-financial services in a practical and effective way.
Over 31 years of operation, CEP has supported more than 5.1 million turns of poor workers and laborers with a total loan amount of nearly 74,000 billion VND; creating a sense of saving among poor and low-income members with a total savings balance of more than VND 1,500 billion. CEP has grown and changed a lot over the past 30 years, but one of the most important cores has not changed: our purpose, mission, principles, and strong commitment, the best effort of the staff to fulfill the mission and goals of the institution. With these achievements, CEP was honored to receive the emulation flag of the Government, the certificate of merit from the State Bank of Vietnam, and the traditional flag of the People’s Committee of Ho Chi Minh City.
