The 12 percent credit growth target set for commercial banks this yearis within reach, according to a central bank official.
Nguyen Thi Hong, director of the State Bank of Vietnam ’s Departmentof Monetary Policies, said at a recent press briefing that by late July,the banking sector had achieved a credit growth of 5.3 percent overlate 2012 figure.
This marks a significant improvement over the previous months, Hong said.
She attributed the high credit growth to the central bank’sflexible policies that have helped slash lending interest rate andencouraged credit institutions to push up lending activities.
“The credit growth target of 12 percent set for 2013 was based on thecountry’s economic growth and inflation. The central bank has insistedthat credit institutions work to expand credit activities in ways thatcan ensure the credit security,” Hong said.
However, shenoted that to realise the year’s growth target, lending by banks wouldhave to increase by 1.3 percent each month from now to the end of theyear.
Referring to the 30 trillion VND housing stimulus packagelaunched by the central bank, Hong said commercial banks have alreadymade arrangements to disburse 10-year loans with a maximum interest rateof 6 percent.
Regarding bad debts, which are seen as amajor hindrance to credit growth, Hong said the central bank is activelyperfecting a legal framework to speed up their settlement.
Shealso stressed the need for relevant ministries and branches toseriously implement measures to improve the economy’s capital absorptioncapacity and the market’s aggregate demand.
For their part,banks should adjust their business plans, to make them suitable to thecurrent situation and restructure their operations to become moreeffective, she said.
In addition to implementing the centralbanks guidelines, most banks have tried to increase lending on theirown initiatives.
The most popular ruse, of course, is to cut lending rates.
The Ho Chi Minh Housing Development Bank (HDBank) has decided to offerenterprises loans at just 8 and 8.5 percent per year.
Its 1trillion VND (47.39 million USD) preferential lending programme due tolast until December 31, will apply to enterprises that want to borrowthe money to supplement their working capital for production andtrading.
Meanwhile, the Sai Gon-Hanoi Joint Stock CommercialBank (SHB) has launched a 2 trillion VND credit programme to supportindividuals and households who want to buy houses, vehicles or developproduction and trading.
Under the scheme, which will startin September, the borrowers will be offered loans at interest rates of9.4 percent per year if their salaries are being paid through their SHBaccounts.
Those who do not have accounts at the SHB will be offered loans with the interest rate 9.9 percent per year.
However, the preferential interest rates can only be applied toshort-term loans since they had plenty of short-term capital, leaders ofmany commercial banks said.
Cao Sy Kiem, chairman of theSmall and Medium Enterprises Association, said that in addition tocutting the lending rates, commercial banks should seek ways to cutinput costs so that the low rates can be offered for longer period.
This would create conditions for enterprises to access long-termloans that they need to restore production and other businessactivities, he said.-VNA
Nguyen Thi Hong, director of the State Bank of Vietnam ’s Departmentof Monetary Policies, said at a recent press briefing that by late July,the banking sector had achieved a credit growth of 5.3 percent overlate 2012 figure.
This marks a significant improvement over the previous months, Hong said.
She attributed the high credit growth to the central bank’sflexible policies that have helped slash lending interest rate andencouraged credit institutions to push up lending activities.
“The credit growth target of 12 percent set for 2013 was based on thecountry’s economic growth and inflation. The central bank has insistedthat credit institutions work to expand credit activities in ways thatcan ensure the credit security,” Hong said.
However, shenoted that to realise the year’s growth target, lending by banks wouldhave to increase by 1.3 percent each month from now to the end of theyear.
Referring to the 30 trillion VND housing stimulus packagelaunched by the central bank, Hong said commercial banks have alreadymade arrangements to disburse 10-year loans with a maximum interest rateof 6 percent.
Regarding bad debts, which are seen as amajor hindrance to credit growth, Hong said the central bank is activelyperfecting a legal framework to speed up their settlement.
Shealso stressed the need for relevant ministries and branches toseriously implement measures to improve the economy’s capital absorptioncapacity and the market’s aggregate demand.
For their part,banks should adjust their business plans, to make them suitable to thecurrent situation and restructure their operations to become moreeffective, she said.
In addition to implementing the centralbanks guidelines, most banks have tried to increase lending on theirown initiatives.
The most popular ruse, of course, is to cut lending rates.
The Ho Chi Minh Housing Development Bank (HDBank) has decided to offerenterprises loans at just 8 and 8.5 percent per year.
Its 1trillion VND (47.39 million USD) preferential lending programme due tolast until December 31, will apply to enterprises that want to borrowthe money to supplement their working capital for production andtrading.
Meanwhile, the Sai Gon-Hanoi Joint Stock CommercialBank (SHB) has launched a 2 trillion VND credit programme to supportindividuals and households who want to buy houses, vehicles or developproduction and trading.
Under the scheme, which will startin September, the borrowers will be offered loans at interest rates of9.4 percent per year if their salaries are being paid through their SHBaccounts.
Those who do not have accounts at the SHB will be offered loans with the interest rate 9.9 percent per year.
However, the preferential interest rates can only be applied toshort-term loans since they had plenty of short-term capital, leaders ofmany commercial banks said.
Cao Sy Kiem, chairman of theSmall and Medium Enterprises Association, said that in addition tocutting the lending rates, commercial banks should seek ways to cutinput costs so that the low rates can be offered for longer period.
This would create conditions for enterprises to access long-termloans that they need to restore production and other businessactivities, he said.-VNA
