Governor: The banking system is much better so it can support the economy
At the regular meeting of the Government, the Governor of the State Bank of Vietnam (SBV) Le Minh Hung affirmed that the banking system follows the direction of the Prime Minister to ensure adequate supply of credit to the economy. However, the credit of the support program comes from deposits of people and businesses, therefore, the first responsibility of credit institutions is to ensure the safety of the system and the capital to ensure the safety of the economy and macroeconomic stability.
Credit support is necessary but conditions and standards must be maintained to ensure safety for this period and many years to come. Safe, healthy banking system will support the economy.
Under the direction of the Government, from the beginning of the term, the banking system has been strengthened. The current banking system is much better, so it has the basis and conditions to support the economy. However, the banking industry is not allowed to loosen credit conditions as ensuring capital safety and safety for banking activities is a prerequisite.
The Governor requests leaders of the Ministry to directly discuss with the State Bank to tackle problems and recommendations directly. Many businesses do not meet business loan eligibility criteria, even not in the time of Covid-19. Therefore, specific recommendations will be addressed. The SBV will direct credit institutions to directly handle and solve problems that arise. Enterprises must have plans to ensure feasibility, be able to use capital for the right purposes, and be able to repay the debt for credit institutions to consider providing loans.
The head of the SBV also emphasized that the issue of debt restructuring and keeping the debt group is a breakthrough decision for all credit institutions for debts, including principal and interest, due in this period. . When outbreaks occur, business customers and individual borrowers do not have to pay debts using the cash flow generating source of repayment. At the same time, the bank also consider providing new loans, reducing interest rates.
Governor Le Minh Hung also said that credit growth as of April 28, credit of the whole system increased by 1.32 % compared to the end of 2019. Credit activities have fully and promptly met market demands and liquidity.
The Governor also said that the rescheduling of debt, keeping the debt group has been provided to over 170 thousand customers with a total loan balance of approximately VND 130 trillion; the system has exempted and reduced interest rates and kept the debt group for 14 thousand customers with an outstanding balance of approximately VND 29 trillion; the lowering of the existing loan interest rate has been implemented for about 318 thousand customers with a loan balance of over VND 980 trillion (the common interest rate reduction is from 0.5-2%, some credit institutions even reduced interest rates from 2.5 to 4%), new loans with preferential interest rates lower than the lending rates before the pandemic of 1-2% have been provided for about 150,000 customers with the accumulated loan turnover since January 23 of over VND 500 trillion.
Particularly, the Bank for Social Policies has restructured debts, provided new loans to policy beneficiary customers with a balance of 3,281 billion dong for about 125 thousand customers.
With the direction of the Government, the ministries have worked closely together. Regarding the refinancing loan program, over the weekend, the State Bank received comments from ministries. It is expected that this week, the State Bank will urgently issue a circular on refinancing of VND 16 trillion to the Bank for Social Policies so that the bank lends businesses to pay workers affected by Covid. -19.
- The State Bank and enterprises join hands to promote cashless payments
- Credit growth plummeted due to the impact of COVID-19 pandemic
- Controlling inflation is a top priority
- More positive forecasts about exchange rate stability in 2020
- SBV tightened information security in banking operations
- Helping businesses access capital more easily but not by lowering lending standards
- BVSC: Interest rates are likely to move sideways in the near term
- Digital banking and electronic payment are set to boom in the time of Covid-19
- Non-cash payments have recorded positive changes
- State Bank of Vietnam cut down regulations on business activities