Banks ask for more credit ‘room’

This information was mentioned by leaders of banks at the Industry Conference on implementing the 2% interest rate support program, organized by the State Bank this morning.

This support package with a scale of VND 40,000 billion from the State budget will be deployed in the near future for a number of businesses, cooperatives and business households. Areas expected to receive support include: aviation; warehouse transportation; tourism, accommodation services; manufacturing and processing industry; software publishing, computer programming, information services… In addition, businesses borrow capital to build social housing projects, housing for workers, renovating old apartment buildings… on the list project items announced by the Ministry of Construction, are also subject to interest rate support.

According to Mr. Nguyen Viet Cuong, Deputy General Director of Vietcombank, this year the capital demand of the economy is very high, when the affected sectors begin to recover.

With Vietcombank, in the first 5 months of the year, this bank’s credit growth was more than 9%, while this year’s limit grew only 15%. In other words, there is not much “room” for banks to lend. The implementation of the 2% interest rate support program in the coming time is expected to boost credit demand even higher. Accordingly, the Deputy General Director of Vietcombank proposed the State Bank to consider extending the credit growth limit.

This proposal was also mentioned by leaders of BIDV, VietinBank and MB. These banks both recorded high credit growth even though it was less than half a year. In the joint-stock trading group, many banks also grew by 60-70% of their target.

Talking about this issue, Deputy Governor Dao Minh Tu said that the State Bank has considered the case of loosening the “room” for credit growth when implementing the interest rate support program, when credit in the first 5 months of the year has been reduced. increase. However, the implementation must ensure inflation control and macro stability.

As of May 20, credit growth of the whole system has reached 7.66%. If up to this morning, this number may increase to 7.75%, a double increase compared to the same period in 2021.

Despite rapid growth, leaders of the State Bank said that there are many positive signs when credit growth is spread evenly in many fields instead of focusing on a few industries. In particular, the sectors that faced many difficulties during the pandemic, such as tourism, hotels, and resorts, recorded higher-than-average credit growth, reaching over 8%. Transport, tourism, services, transportation increased by 8.25%; supporting industries increased by over 7.6%.

The interest rate support package under Decree 31 is part of the economic recovery master program 2022-2023.

Loans with interest rate support in Vietnam dong, signed loan agreements and disbursed from January 1, 2022 to December 31, 2023. The support interest rate of 2% a year is calculated on the loan balance and the actual loan term. At the time of interest payment for each period, the commercial bank will reduce to the customer the amount of interest payable equal to the amount of interest supported in the period.

Minh Son