The commander of the banking industry talked about the “injustice” of huge profits, not sharing commensurately with businesses

The level of sharing of banks with businesses and people is not commensurate

Delegate Tran Van Lam – Bac Giang Provincial National Assembly Delegation questioned the Governor of the State Bank about the situation in the past time, when the banking system faced difficulties and faced bad debt packages, the whole political system contributed to the situation. The support with Resolution 42/2017/QH14 of the XIV National Assembly is said to be quite strong and effective as assessed by the Governor.

In the opposite direction, in the past 2 years, the banking industry has also actively supported people and businesses facing difficulties during the pandemic.

However, there are still opinions that the level of sharing of banks with businesses and people for the country is not adequate when the country’s economy in the past 2 years has recorded a low growth rate, many businesses have poured money into the country. break, go bankrupt, stop working, withdraw from the market, people face many difficulties and struggles because of epidemics; many bank loans could not be paid, the debt increased again, but most banks still have high profits and share huge profits.

Delegate Tran Van Lam asked the Governor to evaluate and share about the bank’s companionship for businesses and our country’s economy in the past time and any solutions in the coming time. Delegates asked the question “Is this a injustice or injustice?”

Profits of banks on total assets are not large

Responding to a question about bank profits, State Bank Governor Nguyen Thi Hong said that in the context of the negative impact of the recent Covid-19 pandemic, credit institutions have really followed the call of the State Bank of Vietnam. State Bank to accompany businesses and people.

Accordingly, since the pandemic until now, credit institutions have exempted and reduced loan interest and the total amount of reduction has reached 47,000 – 48,000 billion dong.

According to Governor Nguyen Thi Hong, this is a remarkable number, because the banking system itself is a financial intermediary, profiting from loan interest and services. Therefore, the acceptance of loan interest reduction shows the companionship of credit institutions with people and businesses.

At the same time, banking activities are also associated with risks and bad debts may arise frequently and inevitably. Therefore, credit institutions need to have provisions for handling these bad debts.

Recently, the State Bank of Vietnam has issued a circular allowing credit institutions to restructure the repayment term, keeping the debt group for businesses of the people. Credit institutions participate very actively and accordingly many businesses have bad debts, which should not be eligible for loans, but in this way many businesses and people can borrow again, access more loans. In the process of implementing credit, it increased by 8% compared to the target of 14% for the whole year. At the same time, thanks to the circular on loan restructuring and keeping the debt group unchanged, it has helped resilient businesses continue to get loans.

Regarding the profits of credit institutions, the banking sector commander clarified that banks are enterprises established with business objectives. But unlike ordinary businesses, the charter capital and size of the bank’s assets are very large.

“If by the end of 2020 the whole system of credit institutions has a total asset of 14 million billion VND, by March 2022, the total assets of the banking system will be more than 16 million billion VND; credit is about 12 million billion VND. and assets of 1.6-1.7 million billion. If calculating profit and profit on total assets like that, it is not big,” said Governor Nguyen Thi Hong.

According to Ms. Hong, according to the aggregated data on the stock market, assessed by the rate of return on total assets or the rate of return on capital of credit institutions compared to a number of enterprises in Vietnam. Other industries are not so high.