Credit Growth: 3/4 of the way before

 

► Governor acknowledged the pressure in credit growth at 9% in the last 6 months ...

This time last year, the percentage of loans with interest rates above 15% up to 65% of total loans, but now, new interest loans are about 10% / year.


 As of 05/31/2013, new credit only up 2.98% while the annual target is 12%.

Banking industry officials are trying to target the remaining 9% of the remaining half of the year, but this does not seem easy, when aggregate demand has not recovered, obstacles still clinging to bad debts and the banks too tight in review approved loans.

"Sliding" capital into production

At a preliminary meeting 6 months banking sector in 2013 was held on 17.06.2013, Nguyen Thi Hong, Head of Monetary Policy Department (SBV) said, to 31/05/2013, an increase of credit growth grew up ... "Incentive" to 2.98% compared with 0.56% of the first 5 months of 2012, of which USD rising 5.48% credit, foreign exchange decreased 8.41%.

Although credit growth is low but structural shift towards focusing the business. Specifically, the areas of credit, "three areas" rose by 4%, exports increased by 5.74%, small and medium-sized enterprises increased by 1%, industry 0.02% increase support.

Also the end of the month 4/2013, outstanding loans to purchase rice reached 30.660 billion, up 36.6% compared to 31/12/2012; loan interest subsidy of 4 commercial banks water loss reduction policies increased by 15% compared to 2012.

In particular, interest rates on existing loans and new for households, farms, cooperatives, livestock enterprises, food processing is pulled down to the common 10% / year.

Credit Growth: 3/4 of the way before I was self 1Chung restructuring is completed, the safety norms prescribed are exceeded. Despite the scattered poignant lessons credit as before, but with small scale but credit growth of 12% is very difficult to balance profits. Mr. Nguyen Hung, General Director TienPhongBank

Together, loan sales catfish, shrimp, livestock, hogs, poultry reached 63 193 billion, while the actual balance is 50 110 billion.

Some other highlights of the credit policy is 6 months in the State Bank and the Ministry of Construction issued Circular No. 11 and two circular 7 deployment support package loans real estate market value $ 30 trillion.

Accordingly, the State Bank has contracted with rule 5 of refinancing commercial banks are tasked to disburse this funding package units disbursed, while Agribank signed loan principles housing assistance to 13 projects of 10 companies, including 6 projects by the Ministry of Construction proposed project list for social housing to get loans.

Agribank representative, Nguyen Ngoc Bao, chairman of the board members, "showing": "The banks are hard up, but with Agribank credit is not too difficult. In the first 6 months of the year, up 4.2% credit Agribank, private household economy increased by nearly 6% since this is our main market. "

And Mr. Nguyen Hung, general director of the desire TienPhongBank more growth target to 12% of the whole industry.

He said: "We have completed the restructuring itself, the safety norms prescribed are exceeded. Despite the scattered poignant lessons credit as before, but with small scale but credit growth of 12% is very difficult to balance profits. Therefore, SBV should have a mechanism that allows the unit to be as small as TienPhongBank credit growth greater than the industry overall. "

Achieve way?

At the meeting, Mr. Nguyen Van Binh, Governor of the State Bank said that in recent years, the industry has solved many important jobs, one of which is that interest rate.

This time last year, the percentage of loans with interest rates above 15% up to 65% of total loans, but now, new interest loans are about 10% / year.

Specifically, up to 14% of total loans interest rate of 10% / year, 64% of total loans interest rates of less than 13% / year, 50% of total loans have interest rates ranging from 10% - 13% / year while interest rates over 15% / year accounted for only 12%.

The problem of interest, according to Mr. Binh, also shown to be sustainable in the afternoon when mobilized, although the ceiling is 7.5% / year, but many units mobilized at a lower level, even, interest rates in the medium and long-term banks only 8% - 8.5% / year.

However, the governor also acknowledged the pressure in credit growth at 9% in the last 6 months to complete the yearly target.

"The end of last May 6, but negative for credit growth this year to March was positive. Despite great difficulties due to declining aggregate demand, low purchasing power, fiscal deserve support but not many facilities to accomplish this goal, "the Governor said.

Credit Growth: 3/4 of the way before 2Khi narrow private business investment, geographical balance of monetary policy have been exhausted, the Government must make many decisions as to increase public investment, freeing inventory with lower prices, stimulate consumption where people at the same time, banks continue to reduce interest rates down to 6% / year for infrastructure interest rate, to be able to complete the credit growth target the whole year. Pham Huy Hung, chairman of the Board Vietinbank

Accordingly, with the passage of bad debt settlement scheme has fueled efforts to restructure the sector's bad debt. So far, the bank has restructured 285 trillion debt, approximately 10% of total outstanding loans that otherwise would become bad debt.

Together, these credit institutions are also set aside additional 68 trillion, in the first 4 months of treatment was 7.5 trillion of bad debt by this source. Next, with the establishment of the Asset Management Company of the credit institutions in Vietnam (VAMC), will operate in the middle of 7/2013 hoping to process 50-70 trillion in bad debt this.

"Constitutional Design" to complete the credit growth target of 9% in the second half of 2013, Mr. Nguyen Ngoc Bao, chairman of Agribank said that the need to open two "van" which was first solved faster from congestion handle collateral.

Because, at present, the development forever collateral extremely difficult, time-consuming, but cost big banks are not bad debts. Secondly, the government needs to strongly impact on fiscal policy to increase aggregate demand.

"Need to improve the volume of government bonds, increased public investment, thereby stimulating aggregate demand, inventory just settle, settle employment, to help unfreeze credit growth," he Bao said.

Pham Huy Hung, chairman of the Board Vietinbank emphasis added: "When private business investment narrow, geographical balance of monetary policy have been exhausted, the Government must make many decisions as to increase public investment, clearance inventory at low prices, consumer stimulus where people at the same time, banks continue to reduce interest rates down to 6% / year for infrastructure interest rate, to be able to complete credit growth target for the whole year. "