The Surinaamse Volkscredietbank (Municipal Credit Bank Suriname) opened its doors to the public in 1949. Regional branching has always been one of the bank’s spearheads. As such, a subsidiary was established in District Nickerie, originating from the department Municipal Credit of the Surinaamsche Bank N.V. The municipal credit system in Nickerie, financed by the Surinaamsche Bank N.V., was staffed by personnel lent out by VCB Paramaribo. This collaboration between the two banks, as stipulated in the State Bye-Laws of December 17, 1952, commenced in 1953, to be terminated upon the coming to an end of the status of the Surinaamsche Bank N.V. as circulation bank. This occurred on April 1, 1957 at the establishment of the Central Bank of Suriname.
In 1975, the official inauguration took place of the branch in Lelydorp and in 1983, a branch was established at Latour. VCB did not stop there, however. In 1986, the bank opened its subsidiary in Groningen, in District Saramacca.
In the initial years of its existence, VCB Bank drew the necessary funds for its activities from loans and grants almost fully financed by the government. Other finance sources comprised of the Welfare Fund, the Decennial Plan, the Indemnity Bank, De Surinaamsche bank N.V. and the Surinaamse Postspaarbank (Post-Office Savings Bank). Since already a few decades, no appeals have been made, however, with regard to government assistance.
The Bank started its operational activities through discounts of small promissory notes and pawn credits. It soon became evident, however, that the company was in need of a transition and adjustment of its status as credit facility, based on its original objectives.
The system of monthly repayments, in particular, in comparison to the quarterly and bi-annual repayments at other credit facilities, proved to be of significant importance. Furthermore, the repayment amounts were adjusted to the income of the borrowers. The annuity (annual installments) system, introduced by VCB, aimed at a constant remaining monthly repayment during the entire loan term, including interest and expenses, was of great significance for the bank’s growth and reputation.
The bank’s objective is to provide in the socially accountable credit needs existing in Suriname, without a primary pursuit of profit. The company does, however, guarantee a profitable exploitation such as is expected of any financial institution. Although the Bank’s fundamentals are based on business principles, its social and economic constitution regarding the grant of credits is kept foremost.