To stimulate and promote credit growth

Update: 18-05-2020 | 12:25:34

Credit institutions are actively accelerating many loan programs, while credit growth over this year's early months is on a slow rise due to the Covid-19.

Customers are consulted about loan at BIDV Binh Duong Branch.

To stimulate lending

After an idle time during March, credit growth of the province has recovered in the second half of April. Statistics of Provincial branch of Social Policy Bank show that as of the end of April, total credit of this banking system reached VND 205,537 billion, up 0.4% over the previous month and increased by 1.99% compared to the beginning of the year. Meanwhile, in March, credit only increased by 0.78% compared to the beginning of the year.

Credit increases gain in April, because banks have boosted preferential loan packages to support businesses and people affected by the Covid-19 in order to overcome difficulties as well as restore production. As of late April, credit packages announced by commercial banks were worth more than VND650,000 billion across the system.

Tran Ngoc Linh, Director of BIDV Binh Duong branch, said to boost credit growth and promptly serve customers for production recovery, BIDV Binh Duong is racing with time to settle dossiers within 2 to maximum 5 working days. Although it is difficult, BIDV is striving to meet all customers' demands. For lending activities, since March, BIDV Binh Duong has launched a VND50,000-billion package for individual customers for business production with interest rates from 6 to 6.5% per year. "In addition, there are many preferential credit packages to encourage loans for business customers ]with super low interest, depending on the subject. In addition, BIDV Binh Duong also apply many packages of fees, payment of money transfer with free charge, 30% to 50% discount to late payment. With the low interest rates and fees as above, BIDV Binh Duong predicts that profit before tax this year would decrease to 50% compared to 2019", said Mr. Linh.

Lai Thi Bich Thuy, Deputy Director of HDBank Binh Duong Branch, said two months before the bank had many difficulties due to low disbursement. Although many enterprises were eligible to borrow loans, most businesses were afraid to receive debt. Enterprises were afraid that they could not find customers, thus could not pay interest of loans. Therefore, when the epidemic temporarily cools down, the bank is looking for solutions to accelerate lending, while credit growth over the first 3 months is on the slow rise year due to the Covid-19. According to Ms. Thuy, HDBank has implemented various measures to exempt, reduce fees and interest rates. Besides, there are preferential credit packages worth tens thousands of billion VND for many loan purposes to serve corporate customers, individual business households...

As a result of the Covid-19 epidemic, credit growth of the whole system was quite low compared to the credit growth target set for 2020, which is 14-16%. Therefore, not only the two banks mentioned above but other banks such as Vietcomabank, Sacombank, Vietinbank... with their own measures, all are trying to find ways to boost lending loans at present.

Good control of the credit flow

Vietnam is currently controlling quite well the Covid-19 epidemic, when the epidemic ends, the national economy will recover, business and production activities will flourish, the demand for loans of businesses and individuals will increase again. Then, how will loan conditions, lending procedures of banks be solved?

According to Lam Phuc Hung, Director of Saigon - Hanoi Commercial Joint Stock Bank (SHB) Binh Duong branch, the launched credit packages do not come from the State budget support, but from deposits of businesses, people and organizations at banks. Banks have to pay deposit rates to provide loans to support businesses and people affected by the epidemic. Therefore, the lending mechanism and process must follow current regulations, but with lower interest rates, and of course depending on financial capacity of each bank. These support packages are bank's profits shared with customers. Thus banks pay attention to business capabilities of enterprises; otherwise it will lead to bad debts. It is difficult for banks to carry out works to serve a large number of customers in a short time.

Regarding whether to loosen lending conditions and lower standards to Covid-19-affected customers, Vo Dinh Phong, Director of SBV-Binh Duong branch, said the banking industry make an attempt to share difficulties with businesses, the community, contribute quickly to minimize negative impacts of the epidemic on the economy. The banking industry has been researching and implementing measures to simplify the loan procedures in order to remove difficulties for customers. The banking sector increases lending to support businesses and the economy but does not run after credit growth at all costs... All are to ensure high-quality credit growth and ensure system safety, not to increase bad debts as planned in 2020.

The banking industry has been researching and implementing measures to simplify the loan procedures in order to remove difficulties for customers. The SBV has also directed to handle irresponsible branches and ministries, causing troubles and harassing enterprises and people. The banking sector increases lending to support businesses and the economy but does not run after credit growth at all costs... All are to ensure high-quality credit growth and ensure system safety, not to increase bad debts as planned in 2020.

Reported by Thanh Hong - Translated by Ngoc Huynh

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To stimulate and promote credit growth

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