Credit particularly in terms of retail segment, which has yet fully been exploited, is likely to grow further, said director of ANZ’s Retail Banking Unit Duong Duc Hung.
The banking sector has experienced modest even negative credit growth since the early year whereas some lenders have recently suggested lifting the credit growth cap rate to 25pct-27pct. How do you think such challenging target would be achieved?
The promising retail banking market would offer a variety of growth opportunities. The credit growth rate would depend on each bank’s strategy and importantly ensure safety for lenders and borrowers both.
For credit growth to speed up, many banks have promoted lending to the property sector. Do you think bad debts would mount then?
Normally, apart from appropriate interest rates, lending products should meet customers’ needs, the most evident of which is home purchase due to rapid urbanisation. What is more, the targeted borrowers had better be financially healthy for repayment and property projects should be affordable and of high quality. Prudent assessment would not make lending to the property sector that worrying.
ANZ aims to become the leading bank in Vietnam in terms of individual assets particularly investment and insurance. How would the strategy be implemented?
Typically, individual customers are associated with borrowing and depositing only. However, they would, in fact, prefer investment and insurance as well. Such activities have by far been conducted via the gold, stock, real estate market and insurance agents, which had better be provided by lenders.
Recently, ANZ has been the first to launch the restructured investment product which allows investment either in gold or in foreign currencies with 100 per cent capital protected at maturity as well as likely yields of as much as 20pct-25pct annually.
Our traditional products have now lost popularity while this newly-introduced one has drawn much attention since launching.