Can publish interest rate information for customers to choose the lowest place

On the morning of December 7, Prime Minister Pham Minh Chinh chaired a conference to discuss solutions to remove difficulties in credit growth for production and business, promote growth and stabilize the macro economy.

The Conference was attended by the Chairman of the Board of Directors, General Directors of 38 commercial banks, representatives of the Vietnam Banking Association, associations, industries, the Association of Small and Medium Enterprises, the Vietnam Real Estate Association, the Ho Chi Minh City Real Estate Association.....

Can publish interest rate information for customers to choose the lowest place image 1 — The Prime Minister affirmed that banks must share with people and businesses. Photo: VGP/Nhat Bac.

Lending interest rates at some banks are still high, credit growth is low.

At the Conference, Deputy Governor of the State Bank Dao Minh Tu said that the State Bank has continuously adjusted interest rates down 4 times with a reduction of 0.5-2.0%/year in the context of world interest rates continuing to increase and anchor at high levels.

The State Bank has directed and organized meetings with banks to request credit institutions to reduce costs to reduce lending interest rates to support the recovery and development of production and business.

Although lending interest rates of credit institutions have decreased significantly in recent times, lending interest rates at some commercial banks are still quite high.

Some banks are not bold enough to grant credit, they are still cautious, afraid of increasing bad debt. The implementation of the collateral mechanism is still not flexible, mainly relying on mortgaged assets. There is a lack of connection between customers and banks to directly discuss and find solutions to overcome capital difficulties.

As a result, credit growth is low. By November 30, 2023, credit to the new economy reached about 13 million billion VND, up 9.15% compared to the end of 2022, still lower than the same period of previous years and quite far from the target (14% -14%).

In addition to high interest rates, there are many other reasons for low credit growth. According to Deputy Governor Dao Minh Tu, the reasons are: other capital mobilization channels of the capital market (corporate bonds, securities) have not been effective, there are some problems and have not developed commensurate with the role of providing medium and long-term capital for the economy; Some customer groups have needs but do not meet the conditions for borrowing, borrowers have unhealthy financial situations, use loans for the wrong purposes, invest and do business ineffectively leading to inability to repay loans, etc.

Interest rate information may be disclosed.

The State Bank said it will study the publication of average lending interest rates of credit institutions so that customers can choose banks with low interest rates to access loans.

For credit institutions, the State Bank's leaders require the need to cut costs to reduce lending interest rates, cut unnecessary fees to support businesses and people to recover and develop production and business; urgently review projects and businesses (meeting/not meeting lending conditions) to ensure timely credit supply for feasible and effective projects, share support for businesses and borrowers to overcome difficulties to continue capital turnover and debt repayment.

In addition, credit institutions continue to simplify loan processes and procedures, publicize fees, interest rates, etc. to create more favorable conditions for businesses and people to access bank credit sources. Accelerate the development and implementation of restructuring plans associated with bad debt settlement for the 2021-2025 period according to the guidance of the State Bank and resolutely, synchronously and effectively deploy preventive measures, minimizing the occurrence of new bad debts.

Banks must share with people and businesses

At the Conference, the Prime Minister affirmed that banks and enterprises are part of an economic ecosystem. The development of banks and enterprises is related to each other and related to the development of the economy. Only when the economy develops will banks and enterprises develop and vice versa, only when banks and enterprises develop will the country develop.

Each person, each entity must share responsibility, contribute to the country's efforts to overcome difficulties, then each person, each entity can overcome difficulties and have common development.

"Banks also have times when they are favorable and profitable, so when they are in difficulty, they must share with the people and businesses," the Prime Minister affirmed.

The Prime Minister said that in order to find a solution to the credit problem, overcome difficulties together, and develop together, in the spirit of "harmonious interests and shared risks", each delegate needs to speak frankly, look straight at the truth, listen to and accept each other's opinions; promote solidarity to contribute together and need sacrifice and tolerance; have high determination, great effort, focused actions, and complete each task.

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