Local banks offer promotions for pushing credits

22-Jul-2016 Intellasia | Bao Dau Tu | 6:00 AM Print This Post

The higher pressure from credit and profit targets has been pushing banks to increase credit demand step-by-step through lending promotions.

To assist individuals, private enterprises and entrepreneurs to have chance realising their own plans, An Binh Commercial JS Bank or ABBank has launched a 5 trillion dong credit package by which the longer 12-month loans of between 100 million dong are offered at 7.58 percent per annum. Similarly Eximbank also offered 10 trillion dong at 6 percent per annum to import and export companies.

Besides, VietCapital Bank provides the loans of up to 80 percent of enterprise demand for investment capitals. They massively announced the products and services suitable to each every customer category with the lending rate of 6.6 percent pa.

Previously, some banks also had raced to launch demand push, such as HDBank supplied a 1 trillion dong credite at 6.8 percent pa while ACB preferred providing loans to SMB, those who demand house for living to reach out the retail lending ratio of 35 percent this year.

Lending rates are in an appropriate increase pace despite banks are enhancing credit demand.

H1 financial reports showed that the credit growth of BIDV was 6 percent only, Vietcombank and Vietinbank at 10.6 percent and 7.7 percent respectively. Compared with big-sized banks, the credit growth of few small banks in first two quarters was better, ranging between 10-15 percent, but due to small scope, absolute value remains low.

According to bankers, the competition in lending is very severe for which banks ought to reduce lending rates but small reduction in lending rates for several months of 2016 was recorded. Expansion for lending market shares is difficult as banks control risks and capital demanders fear for interest rate pressure.

Financial specialist Huynh Trung Minh said that house loan rates seem to be appropriate and quite stable, however, outstanding loans provided to individuals slowed down due to highs in property prices.

Vietnam’s credit growth of the banking sector for 2016 is estimated at 18-20 percent in the economic context that the system still is struggling with bad debts, according Dr Tran Duy Lich, member of National Council of Consulting Finance and Monetary Policies.

The State Bank of Vietnam’s statistics showed that the credit growth in Jan-May stayed at 5.48 percent only, especially outstanding loans of HCM City banks grew by 5 percent in Jan-May, representing a 3-year high and those of Hanoi-based banks in the first four months of 2016 rose by 4.8 percent against the end of 2015.


Category: Finance, Vietnam

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