Banking industry strives to "pump" capital into the economy

Bac A Commercial Joint Stock Bank, Hoa Binh branch, has implemented preferential credit packages for individual customers and businesses in need of loans for production and business.

Aiming at the target group of individuals and small businesses in need of financial support, VPBank has just launched a business loan package with preferential interest rates from 5.39%/year, providing flexible and effective financial access opportunities for potential customers. The bank representative said that the loan package has many outstanding advantages such as: flexible documents, quick processing procedures thanks to the application of modern technology, 100% funding policy for capital needs, maximum loan limit of 80% of the value of collateral and flexible loan term of up to 20 years. Therefore, customers can proactively control cash flow and business plans.

For Agribank , since the beginning of the year, the nationwide system has actively implemented preferential credit programs for individual customers, notably 3 preferential credit programs with a total capital of 110 trillion VND. Of which, 70 trillion VND is reserved for customers borrowing capital for production and business, with preferential interest rates from 4.5%/year. In addition, Agribank Hoa Binh branch focuses on implementing credit policies to serve agricultural and rural development. From 2016 to present, Agribank Hoa Binh branch has signed a cooperation agreement with the Provincial Farmers' Association to implement credit policies to serve agricultural and rural development according to Decree No. 55/2015/ND-CP of the Government. Through the network of Loan and Saving Groups of Farmers' Associations at all levels, preferential credit capital from Agribank has been "pumped" to villages, hamlets, and production teams, delivered to thousands of farming households and materialized into production models, creating financial resources to help people develop production, increase income, and improve their lives.

In the whole province, it is noted that from the beginning of the year until now, credit institutions have actively implemented the 2025 business and financial plan, closely following the solutions for managing monetary, credit and banking policies and policies for local socio-economic development. In particular, focusing on implementing credit programs according to the policies and directions of the Government, the Prime Minister, the State Bank of Vietnam (SBV) and the orientation of local Party committees and authorities with the determination to "pump" capital into the economy, promptly meeting the capital needs for production and business. In the first months of 2025, mobilization and lending interest rates continued to be maintained stably, without unusual fluctuations. Short-term lending interest rates for priority sectors are not more than 4%/year at commercial bank branches and not more than 5%/year at people's credit funds. Interest rates for loans for normal production and business (not in priority sectors) are commonly from 6.0 - 9.5%/year, down 0.2 - 4% compared to December 31, 2023.

According to statistics of the State Bank of Vietnam, Region 3 branch, in Hoa Binh province, it is estimated that by March 31, 2025, the total capital of credit institutions will reach VND 39,535 billion, an increase of 4% compared to the end of 2024. The total outstanding debt of the whole area is estimated at VND 44,395 billion, an increase of 3.5% compared to the end of 2024, of which, short-term outstanding debt is VND 19,889 billion (accounting for 44.8% of total outstanding debt), medium and long-term outstanding debt is VND 24,506 billion (accounting for 55.2% of total outstanding debt). Bad debt in the whole area is below 2% of total outstanding debt.

Urging tasks in the coming time, the State Bank of Vietnam, Region 3 branch, requested credit institutions in the area to continue to carry out the key tasks of the banking sector in 2025. In particular, strictly comply with regulations and instructions on currency, foreign exchange, banking activities and interest rates, lending fees; focus on controlling deposit interest rates to stabilize market interest rates; continue to reduce operating costs, limit arising expenses to create conditions to stabilize and reduce lending interest rates to support businesses and people to recover and develop production and business.

Also following the direction of the State Bank of Vietnam, Region 3 branch, in the coming time, credit institutions will continue to develop a variety of banking credit products suitable to the production and business needs and legitimate consumption of people and businesses; prioritize investment capital for lending to the strengths of the locality; effectively implement solutions for safe, effective and sustainable credit growth along with improving credit quality, controlling bad debt, ensuring system safety... Thereby promoting the vital role, promoting the sustainable development of the economy.

Khanh An

Source: https://baohoabinh.com.vn/12/200455/Nganh-Ngan-hang-no-luc-bom-von-cho-nen-kinh-te.htm