Credit institutions should cut lending rates further by at least 1 to 2 percent to meet the banking sector's growth rate of 12 to 13 percent this year.
State Bank Governor Nguyen Van Binh said this, adding that credit institutions should make the cut right in the first quarter as it was reported that credit growth was negative 1.66 percent as of February 20, while production was stagnant and capital mobilisation was steady.
According to the central bank's latest data, the average lending interest rates in Vietnamese dong for the past six months remained unchanged.
It said between mid-July 2013 and the end of February this year, at State-owned commercial banks, the average lending rates to priority sectors including agriculture, rural areas, supporting industries and exports ranged from 7 to 9 percent yearly in the short term loans and 11 to 12 percent yearly for medium- and long-term loans.
The rates applied by normal commercial loans ranged from 9 to10.5 percent for short-term loans and 11.5 to 12.8 percent for medium- and long-term loans.
At commercial joint stock banks, the common lending rates to priority sectors were between 8 and 9 percent yearly in the short term loans and 11 to 12 percent annually for medium- and long-term loans.
The interest rates at other commercial loans ranged from 9.5 to 11.5 percent for short-term loans and 12 to 13 percent for medium- and long-term loans.
To boost credit growth, besides the rate reduction, Binh said that credit institutions must also actively help firms to access credit.
He cited Ho Chi Minh City as an example. Thanks to the Capital Supply-Demand Linking Programme, credit institutions in the City lent 13 trillion VND, or 590.9 million USD, with the interest rates pegged between 8 and 9 percent for short-term loans and 10 percent for long-term loans.
The programme to establish stronger links between commercial banks and enterprises to facilitate access to preferential credit will expand this year to include small traders.
With its success, the programme is likely to be duplicated nationwide in a move to boost credit growth and help firms access credit.
Binh said that the banking industry would work with construction material firms to hold a conference to discuss measures to link the firms and banks in HCM City in a move to boost construction material consumption.-VNA
State Bank Governor Nguyen Van Binh said this, adding that credit institutions should make the cut right in the first quarter as it was reported that credit growth was negative 1.66 percent as of February 20, while production was stagnant and capital mobilisation was steady.
According to the central bank's latest data, the average lending interest rates in Vietnamese dong for the past six months remained unchanged.
It said between mid-July 2013 and the end of February this year, at State-owned commercial banks, the average lending rates to priority sectors including agriculture, rural areas, supporting industries and exports ranged from 7 to 9 percent yearly in the short term loans and 11 to 12 percent yearly for medium- and long-term loans.
The rates applied by normal commercial loans ranged from 9 to10.5 percent for short-term loans and 11.5 to 12.8 percent for medium- and long-term loans.
At commercial joint stock banks, the common lending rates to priority sectors were between 8 and 9 percent yearly in the short term loans and 11 to 12 percent annually for medium- and long-term loans.
The interest rates at other commercial loans ranged from 9.5 to 11.5 percent for short-term loans and 12 to 13 percent for medium- and long-term loans.
To boost credit growth, besides the rate reduction, Binh said that credit institutions must also actively help firms to access credit.
He cited Ho Chi Minh City as an example. Thanks to the Capital Supply-Demand Linking Programme, credit institutions in the City lent 13 trillion VND, or 590.9 million USD, with the interest rates pegged between 8 and 9 percent for short-term loans and 10 percent for long-term loans.
The programme to establish stronger links between commercial banks and enterprises to facilitate access to preferential credit will expand this year to include small traders.
With its success, the programme is likely to be duplicated nationwide in a move to boost credit growth and help firms access credit.
Binh said that the banking industry would work with construction material firms to hold a conference to discuss measures to link the firms and banks in HCM City in a move to boost construction material consumption.-VNA
