Production activities have recovered, leading to the increase of demand for loans. Before the demand, commercial banks have also increased capital mobilization, attracting sources of savings.
Opportunely meeting demand for loans
After a period of responding to the impacts of Covid-19 epidemic, many enterprises have basically recovered their production and business activities. Along with that, the province’s main production and export industries have had positive signs. To meet clients’ demand for loans in production and business, province-based credit institutions have implemented many solutions to increase credit supply.
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In the first 3 months of the year, mobilized capital of banks grew up. In picture: Transaction at BIDV - Binh Duong Branch
As one of the leading banks in implementing preferential credit packages for businesses, as of late March 2021, the total outstanding loans of Vietcombank Binh Duong reached VND 13trillion, 65% of which came from businesses. It is known that 80% of businesses in the province are small and medium-sized ones. Hence, Vietcombank Binh Duong has focused on boosting credit growth for these clients with preferential credit policies, including the competitive interest rate program with loans for priority sectors ... These are credit packages that Vietcombank Binh Duong has deployed to both new and traditional clients for many years. They have ensured small and medium-sized enterprises to enjoy interest rates that are lower than the listed interest rates from 1.5 to 4.7% / year.
“For newly transacted enterprises, Vietcombank Binh Duong has deployed more support products such as providing loans with competitive negotiable and special interest rates…”, Nguyen Thai Minh Quang, Director of Vietcombank Binh Duong said.
Accompanying clients during the difficult period since early this year, BIDV Binh Duong has reduced interest rates for 42 businesses, economic organizations and many individual customers with the total outstanding loan of more than VND2.35 billion, restructured the repayment term for 16 enterprises and more than 40 individual customers with the total outstanding loan of more than VND1.63 trillion. Implementing investment orientations and preferential policies on lending interest rates for priority sectors, BIDV has also boosted credit growth, proactively adjusted investment structure with mobilizing loans for enterprises producing and trading in essential goods.
Tran Ngoc Linh, Director of BIDV Binh Duong said that under the 2021 business plan in accordance with market developments, BIDV is promoting credit growth in the direction of prioritizing resources to retail customers, small and medium sized enterprises. With its effort in encouraging credit growth, BIDV Binh Duong has so far disbursed more than 1.21 trillion in loan for 46 various credit contracts, an increase of about 2% compared to 2020.
In addition to supporting interest rates for businesses, many banks and other credit institutions in the province are also applying support solutions on consulting management, building business strategies, and diversifying service products, creating favorable conditions for businesses to meet and learn experience on investment promotion while strengthening credit supply.
According to statistics by the State Bank of Vietnam (SBV)’s Binh Duong Branch, as of late March 2021, province-based credit institution system has mobilized VND235trillion in capital, up 16.5% compared to the same period last year. Its total outstanding loans amounted to VND233trillion, up 2.1% and 14% compared to the beginning of the year and to the same period last year. “The SBV’s Binh Duong Branch is focusing on directing credit institutions to expand credit effectively, focusing capital on production, business and priority sectors. Along with that, the branch will continue coordinating with localities and industries ‘associations to handle petitions, facilitating and increasing enterprises' access to capital to the banking system ”, Vo Dinh Phong, Director of the SBV’s Binh Duong Branch said.
Many mobilization solutions
Currently, there are many banks adjusting to slightly increase interest rates for deposit in some terms from 0.1% to 0.2% / year. Some banks have sharply increased interest rates for deposit at all terms by 0.4% - 0.7% / year.
According to the current general level, the interest rates on 12-month deposits range from 4.9% to 8.2% per year; 3.7% - 6% / year for 6 - 9 month term. The highest interest rate for 6-month deposit is 4% / year. In addition, many banks also have interest rates for online deposits, internet banking or mobile banking that are 0.1 - 0.4% per year higher than the level of deposits dealt at traditional counters.
According to some banking leaders, if the interest rate for deposit is low for a long time, the capital flow will shift into other investment channels such as stocks, real estate…, causing pressure on inflation. Therefore, banks must balance the interest rates for deposit to attract idle capital. This source of capital is the basis for credit institutions to timely supply capital to the market, meeting the needs of economic growth in the post-pandemic recovery period.
Reported by Thanh Hong-Translated by K.T
