State Bank orders actions to fight black credit

Hanoi (VNA) – The State Bank of Vietnam (SBV) has issued a document requesting credit organisations and branches of foreign banks to expand credit activities serving production, business and consumption as part of efforts to limit “black credit”.

Under document 10340/NHNN-TD, the SBV Governor asked credit organisations to increase lending to prioritized production and business sectors, and accelerate credit programmes under the instruction of the Government, the Prime Minister and the SBV.

Credit organisations should design credit products with suitable interest rates meeting the borrowing needs of enterprises and individuals, while continuing to reform lending procedures to facilitate credit access of people and enterprises.

The Vietnam Bank for Agriculture and Rural Development is urged to intensify the implementation of its 5 trillion VND consumer credit programme while the Bank for Social Policy is told to review its lending programmes so as to timely advise the Government in making appropriate adjustments. The bank should focus attention on areas with large numbers of poor households, and mountainous areas inhabited by ethnic minority people.

Financial companies must strictly follow regulations on consumer lending, ensure transparency of interest rates, fees and methods to calculate interest, and provide full and accurate explanations on the basic contents of consumer lending contracts to customers for them to make decision before signing.

Credit organisations must intensify verification and examination work before, during and after lending, and regularly assess customers’ financial and payment capacity, as well as take initiative in supporting customers who face difficulties in paying debt in line with the law.

They are also urged to provide information on lending services on their websites and the mass media to help more customers access credit./.