Prime Minister Pham Minh Chinh chaired a conference with joint-stock commercial banks on solutions to contribute to the country’s socio-economic development – Photo: VGP/Nhat Bac
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This was the opinion of leaders of several banks at a conference held by the Prime Minister with joint-stock commercial banks on solutions to contribute to the country’s socio-economic development in Hanoi on September 21st.
Numerous preferential interest rate programs are offered, but there is a need to diversify capital sources.
At the conference, Mr. Luu Trung Thai, Chairman of MB, stated that following the Government and SBV’s guidelines and orientations, MB maintained its sustainable growth momentum until the end of August 2024.
The bank’s credit balance reached approximately VND 685 trillion, an increase of 11.15% compared to 2024 and approximately 7.15% higher than the industry average. Loans to priority sectors as directed by the Government accounted for nearly 65%, with new disbursements of about VND 74 trillion for SMEs.
MB adjusted interest rates according to the Government and SBV’s instructions, supported customers in accessing loans, and accompanied them in overcoming difficulties and resuming production and business activities, thus contributing to economic growth. The bank reduced lending rates by 0.5% – 1.45% compared to 2024 (MB’s business loan interest rate is approximately 6.94%, compared to 7.88% in 2023).
In the fourth quarter of 2024, MB will continue to implement preferential interest rate credit programs for customers with viable production and business plans. The bank will also focus on closely controlling credit quality and complying with limits and ratios to ensure safety, liquidity management, etc.
The Chairman of MB also pointed out difficulties, problems, and limitations, especially regarding safe and healthy credit growth. He also presented MB’s recommendations and proposals to the Government and SBV.
MB agreed with the solution of firmly maintaining macroeconomic stability targets, curbing inflation, and stabilizing lending rates. However, there is a need for additional solutions to stabilize and unblock capital flows in the corporate bond market to reduce the pressure on medium and long-term capital in the banking system. Furthermore, timely information dissemination is essential to maintaining the market and investor psychology in the bond market.
“It is necessary to expedite the unification of electricity prices, especially for transitional and new projects, and instruct EVN to prioritize and ensure payment progress for green energy and renewable energy production enterprises. Additionally, the banking sector should be further facilitated and supported in enhancing connectivity and accessing the national database to develop technology and ensure safe and secure payments for customers,” said the representative of MB.
Prime Minister Pham Minh Chinh met with representatives of some banks on the sidelines of the conference with joint-stock commercial banks on solutions to contribute to the country’s socio-economic development – Photo: VGP/Nhat Bac
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Providing guidance on debt restructuring and supporting customers’ cash flow
Mr. Nguyen Duc Vinh, CEO of VPBank, shared that the bank is actively promoting disbursement to meet capital demands, boost production and business activities, and push back black credit. This orientation of VPBank is in line with the requirements and legal framework of the SBV to support enterprises in accessing capital to expand their production and business activities.
Following the Government and SBV’s guidelines, VPBank has planned and implemented solutions to support customers in overcoming difficulties, resuming production and business activities, and overcoming the consequences of Storm No. 3 (YAGI) as directed by the SBV.
VPBank promptly instructed its branches and transaction offices to proactively review and summarize the damage of borrowing customers to provide timely support.
Regarding the social housing lending program, in accordance with the Government’s Resolution 33/NQ-CP dated March 11, 2023, VPBank registered to participate in the lending program for social housing, workers’ housing, and renovation and reconstruction of old apartment buildings, with a disbursement volume of VND 5,000 billion by 2030.
Mr. Nguyen Duc Vinh, CEO of VPBank, made specific recommendations and proposals to relevant ministries, branches, and localities. There should be a program to support enterprises and people affected by floods and storms, including tax breaks to help customers recover their lives and resume business activities.
Legal support is needed for real estate companies to implement projects, create cash flow, and generate surplus value for society, with which they can repay debts to banks. The public security, court, and enforcement agencies should assist in debt recovery, seizure, and handling of mortgaged assets, giving priority to credit institutions to ensure credit safety for banks and generate cash flow for reproduction and lending to the community.
“It is recommended to consider extending Circular No. 06/2024/TT-NHNN dated June 18, 2024, to June 30, 2025, and provide additional guidance on credit institutions’ allocation of receivable and refundable interest. A roadmap for point b, Clause 5, Article 4 on the specific provision rate should also be established,” said the representative of VPBank.
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The leaders of joint-stock commercial banks attribute the country’s economic growth and controlled inflation to the effective coordination between monetary and fiscal policies. This harmonious relationship has been pivotal in achieving macroeconomic stability and keeping inflation within the targeted range.
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