Big profit banks don’t share with businesses: “The injustice of Thi Kinh?”
In the question-and-answer session this morning, according to delegate Tran Van Lam (Bac Giang delegation), when the banking system was in trouble (faced with bad debt packages), the whole political system contributed to supporting the banking sector. Resolution 42 of the XIV National Assembly.
In the opposite direction, in the past 2 years, the banking industry has also provided positive support to people and businesses in difficulty. However, there are still opinions that the level of sharing of banks with businesses and people with the country is not commensurate.
When the country’s growth in the past two years was at a record low, many businesses collapsed, went bankrupt, stopped operating, and withdrew from the market. People are facing many difficulties and struggles because of the wild epidemic. Many bank debts were not paid due, bad debts increased again. But most banks still have high profits and share huge profits.
“I ask the Governor to evaluate the sharing, accompanying the bank with businesses and the economy in the past time and any solutions in the near future. Is this “the injustice of Thi Kinh” or the injustice? what?”, delegate Lam asked the Governor of the State Bank.
Delegate Tran Van Lam (Bac Giang delegation) asked the Governor to clarify the sharing and accompanying the bank with businesses during the difficult period because of the epidemic in the past 2 years.
Responding to a question from delegate Lam, Governor of the State Bank Nguyen Thi Hong said that credit institutions have recently followed the call of the State Bank to accompany businesses and people.
When COVID-19 occurred from the beginning of 2020 until now, credit institutions have exempted and reduced interest rates for businesses and people. Total reduction is 48,000 billion VND. This is a remarkable number, which is shared by the banking system”, Ms. Hong informed.
Ms. Hong emphasized, the banking system itself is a financial intermediary, the source of revenue is from interest collection and other services. But banking activities are also associated with risks and bad debts can often arise. Banks need to have backup financial resources to deal with bad debts.
Recently, the State Bank of Vietnam has issued a Circular allowing banks to restructure debt repayment terms, keeping the debt group for businesses and people intact. Credit institutions participate very actively. Many businesses with bad debt, should not be eligible for loans, bad debt, unable to repay, so they may not be able to borrow capital. But in this way, businesses and people can get loans back.
“In the first five months of this year, credit grew by 8%. This increase is very high compared to the target of 14% for the whole year of 2022, showing that this is also thanks to the Circular on restructuring loans and allowing the debt group to remain the same, so businesses are able to recover after this. During the pandemic, they can continue to get loans,” said Ms. Hong.
According to the Governor of the State Bank, the rate of return on capital of some credit institutions compared to enterprises in other industries is not high.
Regarding the high profitability of banks, Ms. Hong said that the established banks have business goals for profit. However, banks have very large capital and assets. Currently, if by the end of 2020, the whole system of credit institutions has a total asset of 14 million billion VND, by March 2022, it will be more than 16 million billion VND, 12 million billion VND in credit.
“The assets of a credit institution, such as a state-owned commercial bank, are about 1.7 million billion VND. Profitable profit of ten thousand or twenty thousand billion dong on the total assets is not that big. According to the data we aggregated on several pages, the rate of return on capital of some credit institutions compared to enterprises in other industries is not high,” said the Governor of the State Bank.
* Invite readers to watch programs broadcast by Vietnam Television on TV Online and VTVGo!
at Blogtuan.info – Source: vtv.vn – Read the original article here
