Hanoi (VNA) – The banking industry is taking solutions to promote credit growth, increase access of people and businesses to credit, and promptly meet the capital demand of the economy, said Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong.
Speaking at an online conference to promote credit growth held by the SBV on June 19, the governor said that by June 14, credit had grown by 3.79% compared to the end of 2023.
She said the SBV has issued documents throughout the system to provide guidance on credit, perfect mechanisms and policies, and direct and manage credit activities, interest rates, disbursement of credit packages.
In particular, the bank has proposed to amend the 120 trillion VND (4.71 billion USD) social housing programme with more preferences, strengthen communications and connection, remove difficulties, and create conditions for banks to provide credit and for people and businesses to access loans.
Although the banking industry strives to synchronously deploy solutions, until now, credit growth is still at a low level.
In particular, according to the gGovernor, since the beginning of this year, the SBV has granted all credit rooms to banks. However, in the six months, some banks posted slow credit expansion, even negative growth.
“This shows that overall domestic credit demand has not had a strong recovery, many manufacturing and service industries which are the traditional driving forces of the economy are still facing difficulties. Meanwhile, customers want to borrow capital but have not built a feasible production and business plan, failing to meet conditions”, Hong said.
SBV Deputy Governor Dao Minh Tu said that there are 23 provinces with negative credit growth, and 29 others with growth of no more than 2%. As for the credit institution system, besides banks with growth rates higher than 10%, many others reported negative credit growth rates of 4%.
ABBANK is one of the banks with the highest negative credit growth, up to 10.08%.
As one of the Big4 group, Vietcombank's credit growth is also modest.
Nguyen Thanh Tung, General Director of Vietcombank, said that as of June 17, Vietcombank's credit had increased by 2.4% compared to the beginning of the year. This is a great effort of this bank because it used to suffer negative growth.
Tung attributed the low credit growth to the economy's weak capital absorption capacity.
Recently, Vietcombank has implemented many measures to promote credit such as improving credit granting processes, applying technology solutions, and increasing online disbursement.
At the conference, Tu said that to facilitate the operations of credit institutions, and improve people and businesses' access to bank loans, the SBV will continue to operate the monetary policy proactively, flexibly, promptly and effectively in sync with the fiscal policy and other macroeconomic policies, contributing to boosting economic growth under the goals set in Resolution 01/NQ-CP of the Government.
The central bank will also proactively manage credit growth to contribute to controlling inflation, stabilising the macro economy, and supporting economic growth. In particular, it will direct credit institutions to increase credit safely and effectively, meeting the capital needs of the economy, and direct credit to production and business sectors, priority areas and growth drivers.
Besides, credit institutions are urged to promptly meet highly seasonable capital demand for some key agricultural export products such as rice, coffee, and seafood. They were also asked to review the capital needs of important industries and sectors such as real estate, transport infrastructure, cement, iron, steel, and construction material.
In addition, banks were told to deploy credit programmes and policies including the credit programme of 120 trillion VND for social housing development and another programme worth 30 trillion VND for the forestry and fisheries sector.
Tu said the SBV will also closely monitor the implementation of its circulars on restructuring debt repayment and keeping debt categories unchanged to support customers facing difficulties./.
