Boosting outstanding loan growth, promoting production and business development

In the first months of the year, the absorption capacity of bank capital by people and businesses in the province was lower than the same period in recent years. In order for credit capital to penetrate deeply into the economy and create new breakthroughs, the State Bank of Vietnam - Thanh Hoa Branch (SBV Thanh Hoa) has directed credit institutions in the area to resolutely implement many credit investment programs for production and business development, promote outstanding loan growth, and make an important contribution to the socio-economic development of the province.

People come to borrow capital at the Joint Stock Commercial Bank for Industry and Trade - Thanh Hoa Branch.

Currently, the Joint Stock Commercial Bank for Foreign Trade of Vietnam - North Thanh Hoa Branch (Vietcombank North Thanh Hoa) is simultaneously implementing a series of lending programs with preferential interest rates from only 5.3%/year for short-term production and business loans and interest rates from only 6.5%/year for medium and long-term loans for individual customers and small and medium enterprises. For medium and long-term loans, the preferential interest rate is 6.3%/year in the first 6 months of 2024.

In addition to preferential loan interest rates, procedures and loan approval processes are also optimized by banks to be most convenient for people and businesses. In particular, online lending and unsecured lending for consumer loans are being promoted. At Vietnam International Commercial Joint Stock Bank (VIB) - Ba Trieu Transaction Office, many e-banking services are currently being deployed to serve customers, such as online overdraft loans, savings book mortgage loans, pre-approved online credit card opening... These services are 100% performed on VIB's digital platform, helping customers easily register in less than 1 minute anytime, anywhere, 24 hours a day, 7 days a week.

To support customers in easily accessing capital, the banking system in the province has both lowered interest rates and implemented many preferential credit programs, while promoting investment in building technology platforms and digitizing the loan process, thereby saving time and costs for both borrowers and lenders. Currently, the common short-term business lending interest rates of State-owned commercial banks are fluctuating above and below 6%/year; other small commercial banks are 1-3% higher, depending on the bank, customer and lending sector. Although the current interest rate continues to be at its lowest level in many years, many commercial banks in the area have excess capital and are adjusting their deposit interest rates down. Faced with this reality, banks have proactively introduced many solutions to promote credit growth.

Accordingly, the State Bank of Thanh Hoa has directed credit institutions to expand credit to customers with positive operating conditions and effective production and business activities. In expanding the network, developing loans for households, business individuals, and craft villages with strengths in the province such as handicraft production for export, forestry processing, etc.; increasing overdraft loans for customers with highly liquid collateral (such as real estate, savings books) with low interest rates. With synchronous and practical solutions from credit institutions, by the end of July 2024, the total mobilized capital in the area reached more than 179,000 billion VND, an increase of nearly 9,000 billion VND (6%) compared to the beginning of the year. Total outstanding loans reached nearly 210,000 billion VND (excluding development banks), an increase of 6% compared to the beginning of the year. Credit quality continues to be well controlled, with the bad debt ratio below 0.8%.

Mr. Tong Van Anh, Director of the State Bank of Thanh Hoa, said: In the coming time, closely following the Government's instructions, the State Bank of Thanh Hoa is focusing on directing credit institutions in the area to continue to reduce the lending interest rate level (cutting costs; simplifying administrative procedures, enhancing the application of information technology, digital transformation, etc.); publicizing the average lending interest rate so that people and businesses can easily access credit, evaluate the level of incentives and choose a bank to borrow capital. Strive to increase the outstanding loan growth of the banking system in the province by 14 to 15% compared to the end of 2023. At the same time, promote the effective implementation of preferential credit packages suitable to the characteristics of each credit institution for important areas, growth drivers of the economy according to the Government's policies, such as: Social housing support program, workers' housing, Forestry and fishery loan program, loans for 5 priority areas, etc.; Continue to strictly control credit in areas with potential risks; ensure safe and effective credit activities; strengthen communication and guidance for customers and beneficiaries in accessing policies; promote the pioneering and exemplary role of effective credit institutions and state-owned commercial banks; enhance social responsibility and business ethics of credit institutions in sharing and supporting people and businesses...

Article and photos: Luong Khanh

Source: https://baothanhhoa.vn/day-manh-tang-truong-du-no-thuc-day-phat-trien-san-xuat-kinh-doanh-220542.htm