Business strapped by tight banks
Companies and individuals in HCM City
continue to face difficulties in accessing bank loans, even though many
of them are willing to pay a higher interest rate.
Companies and individuals in HCM City
continue to face difficulties in accessing bank loans, even though many
of them are willing to pay a higher interest rate.
Many local commercial banks have increased interest rates on some types of loans, and others have temporarily suspended offering of new loans.
Nguyen Thu Hien, who works at a major commercial bank’s transaction office in district 6, said that all loan applications were being considered carefully by bank managers.
“We give priority to old customers but we also are reducing their credit limit. We have to refuse applications for new loans,” Hien said.
Independent market watch-dogs said that local banks were restricting new loans because the central bank had asked them to ensure credit growth to no more than 30 percent to help ensure the security of the banking system and help prevent inflation.
In addition, under another new central bank policy, local financial institutions were asked to limit the use of short-term mobilised capital for medium-and long-term loans to ensure credit quality and reduce risks.
In particular, commercial banks can use only 30 percent of their short-term deposits for medium-and long-term loans.
Under the previous regulation, the banks could use up to 40 percent of their short-term mobilised capital for long-term loans.
The Vietnam Thuong Tin Commercial Joint-Stock Bank (Vietbank) has increased its lending interest rate from 14.5 percent annum to 15.5 percent.
The Asia Commercial Joint Stock Bank (ACB) has a new interest rate of 13.47 percent instead of 12.75 percent for real estate loans.
One bank customer, Huynh Thi Kim Hoa, said that she was waiting to hear from Vietbank about a 300 million VND (16,853 USD) loan to buy an apartment.
“At first, I was told that the new interest rate was 15.57 percent a year instead of last month’s 14.5 percent, and then I was required to wait for three days,” Hoa said./.
Many local commercial banks have increased interest rates on some types of loans, and others have temporarily suspended offering of new loans.
Nguyen Thu Hien, who works at a major commercial bank’s transaction office in district 6, said that all loan applications were being considered carefully by bank managers.
“We give priority to old customers but we also are reducing their credit limit. We have to refuse applications for new loans,” Hien said.
Independent market watch-dogs said that local banks were restricting new loans because the central bank had asked them to ensure credit growth to no more than 30 percent to help ensure the security of the banking system and help prevent inflation.
In addition, under another new central bank policy, local financial institutions were asked to limit the use of short-term mobilised capital for medium-and long-term loans to ensure credit quality and reduce risks.
In particular, commercial banks can use only 30 percent of their short-term deposits for medium-and long-term loans.
Under the previous regulation, the banks could use up to 40 percent of their short-term mobilised capital for long-term loans.
The Vietnam Thuong Tin Commercial Joint-Stock Bank (Vietbank) has increased its lending interest rate from 14.5 percent annum to 15.5 percent.
The Asia Commercial Joint Stock Bank (ACB) has a new interest rate of 13.47 percent instead of 12.75 percent for real estate loans.
One bank customer, Huynh Thi Kim Hoa, said that she was waiting to hear from Vietbank about a 300 million VND (16,853 USD) loan to buy an apartment.
“At first, I was told that the new interest rate was 15.57 percent a year instead of last month’s 14.5 percent, and then I was required to wait for three days,” Hoa said./.