The newly-formed Cooperative Bank of Vietnam (Co-op Bank) made its debut on July 9.

The bank, which has a charter capital of 3 trillion VND, was created from the Central People’s Credit Fund.

According to Chairman of the Board of Directors Tran Quang Khanh, Co-op Bank will develop and supervise banking services for the system of people’s credit funds.

Co-op Bank is different from commercial banks because it was set up by voluntary members who contributed capital in accordance with legal regulations.

State Bank Governor Nguyen Van Binh said that the bank model will contribute to meeting the capital demand in rural areas by serving disadvantaged people, low income earners and small enterprises, while limiting loans with high interest rates and ensuring social security and sustainable poverty reduction.

The model will also contribute to the development of the collective economic sector, he added.-VNA