Gloomy demand for loans at the end of the year

(Baonghean) -It is almost half of the last quarter of the year but the outstanding loans of banks are still increasing slowly, or even not increasing in some places. The reason is that the demand for loans from businesses is very limited. On the other hand, banks have also tightened lending regulations, so the disbursement of capital is low.

According to data compiled by the State Bank of Vietnam, Nghe An branch, as of October 31, total outstanding loans increased by only 2.1% compared to the beginning of the month (up 1,495 billion VND, reaching 73,790 billion VND); of which, outstanding loans to businesses accounted for 52%. A typical example of good growth in mobilization and lending is the Nghe An Bank for Agriculture and Rural Development. Currently, this bank has outstanding loans of over 8,155 billion VND, up 21.6% compared to the beginning of the year, mainly focusing on the rural agricultural sector, small and medium enterprises. Mr. Phan Hoang Vuong - Director of the Bank for Agriculture and Rural Development excitedly said: "By the end of October, we have basically completed the year's target. As for lending, from now until the end of the year, the outstanding balance will increase by 250 - 300 billion VND. We focus on lending to farmers to ensure the need to fertilize winter crops, prepare for spring production, develop long-term industrial crops, and purchase and process sugarcane. In addition, we also promote lending for trade services to prepare goods for the end of the year."

Production and business are difficult, businesses' demand for loans is limited.

However, the number of credit institutions (CIs) achieving such a positive growth in mobilization and lending is not much. Mr. Hoang Anh Tuan - Head of Business Department of Ocean Bank Vinh branch said: At this time last year, the demand for loans increased dramatically, but now there is almost no change. The current outstanding debt of Ocean Bank Vinh branch is mainly businesses, and is mostly in projects, old commitments that are now at the time of disbursement, but very few new customers.

The situation of good input but no visible output is quite common in some other banks. For example, at VIB Vinh International Bank, although capital mobilization growth is relatively good, credit balance growth is low. Currently, mobilized capital reaches 1,400 billion VND but outstanding debt is only about 700 billion VND. "The lending situation has not increased compared to the beginning of the year, this year's lending results are likely to be the same as last year" - Mr. Nguyen Xuan Thong - Director of VIB Vinh said.

According to Mr. Thong, the economic situation this year is still difficult, so the ability of enterprises to absorb capital is not good. Although banks have introduced many policies to promote credit, including quite flexible lending conditions, in general, enterprises do not really have a need for capital. Mr. Le Anh Tuan - Director of Song Lam Mechanical Joint Stock Company shared: "At this time every year, our enterprise needs to borrow several billion VND, but currently there are no orders, so we do not want to access loans. We will produce goods based mainly on our own capital and only borrow a small amount of bank capital when we need to supplement, and when output improves."

Many bank leaders complained that in the current difficult economic context, finding businesses is not easy, if not too difficult, and the bank mentality is also more cautious, so the final disbursement figure will be difficult to achieve. Some businesses have researched with banks to borrow, but after their applications are approved, they do not go to the bank to disburse. Currently, interest rates are no longer a big problem. At Ocean Bank, interest rates are still around 11-15%/year, much lower than the same period, but disbursement is still difficult. A credit officer at a joint stock bank in Vinh City said that during this time, loan application review is very difficult, the appraisal process is also stricter and takes more time, so the number of customers who can borrow is not much. There are quite a few customers who come to small banks but their loan applications have been rejected by large banks, so credit officers must be even more careful.

Although lending is difficult, on the one hand, to ensure liquidity and meet capital needs in the last months of the year, on the other hand, some banks with high bad debts also need money to set aside provisions, so banks are strengthening solutions to mobilize capital and attract deposits from the residential sector. By October 31, mobilized capital was VND 7,588 billion compared to the beginning of the year. This is also the time when banks can boost credit growth, making up for negative or very low credit growth in the first quarters of the year.

Thu Huyen