(PLO)- The reduction of loan interest rates depends on the actual situation of each bank and even if it is reduced, not all businesses can access loans.
The Governor of the State Bank of Vietnam (SBV) has just continued to request commercial banks to reduce lending interest rates to support enterprises (enterprises) to restore production, business and socio-economic development. But in reality, businesses are still waiting.
Many banks announced interest rate cuts
In recent days, many banks have announced to reduce deposit interest rates. Most recently, on December 20, Saigon Industrial and Commercial Joint Stock Bank (Saigonbank) sharply reduced the deposit interest rate by 0.4%-1%/year in many terms. The highest interest rate at this bank is currently only 9.5%/year for a 13-month term, down 1%/year compared to before.
The State Bank requires banks to strive to reduce lending interest rates for socio-economic recovery and development. Photo: HOANG GIANG
Similarly, MSB also decreased by 0.4% in all terms, making the highest deposit rate here at 9.2%/year, instead of 9.6%/year in early December.
Bank processing continues
interest rate increase
The Governor of the State Bank of Vietnam has just issued a written request to credit institutions to actively balance capital sources to promptly meet the credit capital needs of the economy, minimizing term risks.
Banks need to focus on providing credit in the fields of production and business, priority areas, and economic development drivers under the direction of the Prime Minister.
The Governor of the State Bank also requested banks to continue to reduce operating costs, administrative procedures, and unnecessary expenses to have room to strive to reduce lending interest rates, recover and develop socio-economic festival.
The SBV will monitor cases where banks continue to raise interest rates and take measures to deal with these banks.
Specifically, the interest rate for 12-month term savings at the counter is 8.6%/year and online is 8.9%/year. SHB also announced that it is maintaining a relatively low interest rate when the highest savings interest rate at this bank is only 8.52%/year.
Not only reducing deposit interest rates, but many banks also reduce lending rates to support businesses. Accordingly, 16 banks have committed to reduce interest rates with the amount of about 3,500 billion VND, the interest rate will be reduced by 0.5-3 percentage points. For example, the state-owned bank group Vietcombank, BIDV, Agribank, VietinBank… announced to reduce interest rates to support businesses.
Mr. Nguyen Viet Cuong, Deputy General Director of Vietcombank, said: “Facing the pressure of increasing lending interest rates due to the increase in input deposit rates, we have minimized operating costs and restructured deposit sources. capital input to reduce capital mobilization costs, thereby creating resources to reduce lending interest rates and support customers”.
Mr. Tran Hoai Phuong, Director of HDBank’s Corporate Banking Division, also said that the introduction of a policy to reduce interest rates takes into account the bank’s business performance and is also a responsibility to the bank’s shareholders. HDBank hopes that its companion will contribute to supporting customers to have more motivation to overcome obstacles and accelerate in the coming time.
Businesses: People waiting, people hard to reach
Assessing the impact of interest rate cuts on businesses and the economy, Mr. Nguyen Quoc Hung, General Secretary of the Banking Association, said: In the context of businesses facing difficulties, plus high interest rates, they will forced to reduce production scale and lay off staff. However, with the policy of reducing lending interest rates that banks have committed, it will have a positive impact on manufacturing enterprises.
|Businesses are in dire need of capital for production and business. Photo: GIA TUI|
“This not only helps businesses reduce interest costs, but also helps maintain production and gradually develop. At the same time, workers still have jobs and stable incomes, especially in the last months of this year,” Hung said.
However, talking to Ho Chi Minh City LawRepresentatives of many companies confirmed that only a few companies in the priority sector have been able to reduce interest rates, the rest have not yet enjoyed this policy and they are waiting.
Pham Quang Anh, Director of Dony Garment Company, said: Thanks to its good credit history, secured assets, plus the use of all payment services, the company’s access to capital at the bank no difficulty now. However, among the banks with which the company has a credit relationship, there has been no announcement of a reduction in lending interest rates.
The director of a coffee export enterprise also affirmed: “Accessing loans is still difficult, let alone reducing lending interest rates. I still get rejected by many banks, while my business still has collateral and good credit score. I hope that the bank’s announcement to reduce interest rates should be implemented immediately in practice, how to make this policy reach businesses and people.”
Regarding this issue, the general director of a commercial bank explained: Although everyone wants the policy of reducing lending interest rates to take place on a large scale, the bank is currently facing difficulties, so what is the level of interest reduction? , the size of outstanding loans to reduce interest rates depends on the financial capacity of each bank. So don’t ask 100% banks to simultaneously reduce lending interest rates. Besides, it is impossible to require all subjects to enjoy the policy of reducing interest rates.
“Not to mention with the situation of enterprises still facing many difficulties, bad debts are at high risk of increasing and the bank will receive enough at that time. At this time, banks are trying their best to be able to share difficulties with businesses, but they are not rich,” the bank leader said.
There is a certain delay
Dr. Nguyen Quoc Hung, General Secretary of the Bankers Association, said: If you want to reduce lending rates, of course, deposit rates must also decrease. He also believes that the move to reduce interest rates in the near future will spread strongly in the system. If one bank lowers its lending rate, another bank that stands still will be less competitive.
Currently, the interest rate reduction is mainly for reputable production and business enterprises with a credit rating of A. And customers who cannot prove the input and output of cash flow, doing business in the field of high income. If the risk is high, the bank may not lend or lend at an appropriate interest rate.
Sharing the same opinion, Assoc. Prof-Dr. Dinh Trong Thinh, a banking and finance expert, analyzed: When deposit interest rates decrease, lending rates will also decrease before and after, but it has a certain delay and the degree of reduction will depend on according to the “financial health” of each bank. Now when the USD is falling, the SBV also continuously lowers the USD/VND exchange rate. This signals that the USD is stabilizing against the VND.
“I think that instead of calling on banks to consider lowering lending rates, the SBV should consider lowering the operating interest rate. From there, banks have a basis to reduce deposit interest rates and bring lending rates to a more reasonable level “- Mr. Thinh emphasized.
Mr. Nguyen Quoc Hung, General Secretary of Banking Association. Photo: vnba.org.vn
Capital removal for real estate can not be in general
Currently, the capital needs of the production and business industry have been initially cleared, but the capital flow for the real estate industry is still limited. So how to open capital flow for this field?
Banks cannot lend to projects that have not completed legal procedures, or projects in the high-end segment with high selling prices and poor liquidity. Meanwhile, for projects that meet real needs, have effective business operations, and projects that create products with affordable prices for consumers, banks still lend normally, without any payment. limit.
Now there are businesses that borrow money to buy agricultural land, have not completed the conversion of land use purposes or projects that are not yet legal enough that require banks to remove, try to ask what type of removal?
Or there are businesses that have both issued bonds and have outstanding loans from the bank, but currently, the bonds have not been refunded principal and interest to people but want to borrow from banks to repay the bonds, that is, turn the outstanding balance of the bond issue into a balance. Bank debt is difficult to get a loan.
Therefore, when raising the issue of capital removal for real estate, it is necessary to specify which segment is removed for, and what legal status is for the project, but not in general.
TS NGUYEN QUOC HUNG, General Secretary of the Bankers Association