In the past months of this year, credit in Khanh Hoa Province had good growth. However, with the complicated situation of the epidemic, it is forecasted that credit in the last months of the year is difficult to increase. The banking ensures capital for the recovery and development of the local economy.
In the past months of this year, credit in Khanh Hoa Province had good growth. However, with the complicated situation of the epidemic, it is forecasted that credit in the last months of the year is difficult to increase. The banking ensures capital for the recovery and development of the local economy.
Both capital mobilization and lending increase
According to Nguyen Hoai Chieu - Director of the State Bank of Vietnam (SBV) Khanh Hoa Branch, in the first 6 months of the year, the total mobilized capital and outstanding loans of branches of credit institutions in the province have good growth compared to the same period last year. By the end of May, the total mobilized capital reached 90,919 billion VND, up 8.17%; total outstanding loans reached 97,264 billion VND, up 7.51%. Lending has reached 55,450 billion VND, up 25.42%. Credit structure focuses on tourism, service and trade sectors, accounting for 68.3%. Industry - construction accounted for 23.63%; agriculture, forestry and fishery accounted for 8.8% of the total loan balance.
To achieve the above results, the banking sector has synchronously implemented many key solutions. Accordingly, the State Bank has directed credit institutions to control credit in line with the growth target for 2021; balance capital sources, focus credit for production and business sectors, especially priority areas according to the Government's policy; effectively deploy solutions to support customers affected by the Covid-19 epidemic. In addition, the banking has expanded credit in parallel with improving credit quality, ensuring that customers meet loan conditions and comply with the provisions of the law, not loosening credit granting conditions to limit the increase in bad debt. Most banks cut operating costs in order to reduce lending interest rates for customers; review and simplify processes and procedures to create favorable conditions for customers to access credit sources; and improve the appraisal ability to shorten the disbursing time…
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Keeping support for borrowers
According to a report by the State Bank - Khanh Hoa Branch, by the end of May, the outstanding loan affected by the Covid-19 epidemic was 35,138 billion VND, accounting for 36.13% of the loan balance in the province. In which, the tourism industry has an affected loan balance of 8,084 billion VND, accounting for 23.01% of the total affected loan balance; the transportation industry has a loan balance of 6,045 billion VND, accounting for 17.2%. The consumption and trade sectors have outstanding loans of 6,334 billion VND, accounting for 18.03%...
Over the past time, credit institutions in the province have been implementing solutions to support borrowers affected by the Covid-19 epidemic such as adjusting debt terms, extending debts for 2,142 borrowers with outstanding loans of more than 7,835 billion VND, including 311 enterprises, outstanding loans of 6,605 billion VND; reduced interest rates on old loans for 14,070 customers, with outstanding loans of 28,605 billion VND, customer interest was reduced by 114 billion VND. Credit institutions' branches gave new loans to 19,976 customers with the amount of 52,329 billion VND. Fees were exempted and reduced of to encourage customers to make online transactions and non-cash payments to limit the spread of the disease...
The leader of the State Bank - Khanh Hoa Branch said that although banks are implementing many credit support packages with preferential interest rates, the demand for loans to expand production and business is low due to the impact of the pandemic. Besides, banks also cannot lower lending standards because they have to comply with the regulations of the State Bank and ensure loan safety to avoid increasing bad debts, so credit growth is difficult to increase in the last months of the year. The Covid-19 epidemic is still complicated, businesses in the province will continue to face difficulties. Therefore, bad debts will tend to increase, affecting credit quality. The State Bank - Khanh Hoa Branch has directed branches of credit institutions to closely follow the socio-economic situation of the province in order to well serve the local recovery and development; at the same time, implement safe and effective credit growth solutions, continue to support customers affected by the epidemic; improve credit quality, control and handle bad debts.
Mai Hoang
Translated by T.T
