Interest rates decrease, capital mobilization still increases

(Baonghean) -Since the beginning of the year, banks have been quite serious in implementing regulations on interest rates, applying reasonable lending rates. However, while mobilization has grown quite well, outstanding loans from the beginning of 2014 until now have not been high.

Suoi May pure drinking water production facility in Son Thanh - Yen Thanh completed the production line and put it into operation thanks to bank loans.

Increased capital mobilization

The capital market has recently witnessed a continuous reduction in deposit interest rates. From March 18, the ceiling interest rate for short-term deposits has been reduced to 6% per year, instead of the previous 7% per year. Along with that, the refinancing interest rate has also been reduced to 6.5% per year and the USD deposit interest rate has been reduced to 1% per year. Although the deposit interest rate has decreased, the deposit capital has still increased quite strongly. Mr. Nguyen Van Hieu - Head of Services and Marketing Department of Agribank Nghe An said: "From March 18, 2014, at all Agribank branches in districts, towns and cities, the maximum interest rate applied to non-term deposits and deposits with terms of less than 1 month has been reduced from 1.2% per year to 1% per year; the maximum interest rate applied to deposits with terms from 1 month to less than 6 months has been reduced from 7% per year to 6% per year.

The maximum short-term lending interest rate in VND for capital needs serving agriculture, rural areas, exports, supporting industries, small and medium enterprises, and high-tech enterprises has been reduced from 9%/year to 8%/year. Although the mobilization interest rate has been adjusted down according to the direction of the State Bank, at Agribank Nghe An, mobilized capital is still growing. Currently, Agribank Branch is deploying over 35 capital mobilization products of all kinds, with high safety, creating opportunities for customers to choose products suitable to their needs. As of March 31, 2014, Agribank's mobilized capital reached 14,517 billion VND, an increase of 704 billion VND compared to the beginning of the year, reaching 5.1%.

Regarding credit, Agribank Branch has promoted the promotion of credit products, proactively approaching customers looking for loan projects. Always prioritizing investment capital for rural agriculture, ensuring the rate according to the orientation of each period. Increasing the number of customers receiving loans, especially households producing in rural areas, small and medium enterprises, strictly implementing regulations on lending interest rates... so the total outstanding debt by the end of March 2014 reached 11,264 billion VND, a growth of 2.63% compared to the beginning of the year. Outstanding loans for rural agriculture reached 9,951 billion VND, accounting for nearly 70%, in March 2014 alone, outstanding debt growth reached over 200 billion VND.

In recent times, the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Vinh Branch has also diversified its capital mobilization forms, while focusing on credit development, expanding lending objects, especially corporate customers, business households... Therefore, the total outstanding debt of Vinh Branch as of March 31, 2014 reached 2,852 billion VND, of which the outstanding debt of wholesale customers was 1,406 billion VND (accounting for 49% of total outstanding debt), the outstanding debt of corporate customers was 848 billion VND (accounting for 30% of total outstanding debt)... In particular, the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Vinh Branch always actively supports in lending capital to enterprises operating in the field of import and export.

According to the assessment of the State Bank - Nghe An Branch, the capital mobilized locally in our province has increased quite a bit. By March 31, 2014, the capital mobilized locally was estimated at 58,330 billion VND, an increase of 2,226 billion VND compared to the beginning of the quarter, and the total outstanding debt of credit institutions was estimated at 96,552 billion VND, an increase of 606 billion VND compared to the beginning of the quarter. Thanks to improving credit quality, credit institutions continue to promote customer supervision, debt collection, etc., so currently bad debt is 1,070 billion VND, accounting for 1.1% of the total outstanding debt.

Difficult lending

With the desire to borrow capital to invest in completing the Suoi May pure drinking water production facility, Mr. Tran Ba ​​Quan and Nguyen Van Thu in Son Thanh commune - Yen Thanh, after meeting the conditions of the Bank for Agriculture and Rural Development - Yen Thanh branch, were disbursed nearly 400 million VND, plus their own capital, borrowed from brothers and friends, the Suoi May pure drinking water production facility has completed a modern, closed production line and a water sterilization process using ultraviolet rays with an operating capacity of 1,500 liters/hour with an investment value of nearly 900 million VND. Mr. Tran Ba ​​Quan said: "The Suoi May pure drinking water production facility has just started operating, but the initial production and business results are very positive. This result is thanks to the timely capital support from the bank". However, the loan capital of Mr. Quan and Mr. Thu was from 2013. At many banks, the loan balance is low. A bank leader said: We are waiting until the second quarter to see what happens. Since the beginning of the year, we have only been able to disburse funds to one customer for the construction of National Highway 1A.

An employee of a commercial joint stock bank in Vinh City said that currently, capital mobilization is quite abundant while lending is not very favorable; capital mobilization targets are not as pressured as lending targets. Most banks are worried about credit growth targets. Therefore, many policies have been introduced to clear capital flows and promote lending. To create favorable conditions for customers to access loans with appropriate interest rates, the State Bank - Nghe An Branch has issued a document requesting credit institutions in the area to continue to strictly implement regulations on interest rates, apply reasonable lending interest rates based on mobilization interest rates and the risk level of the loan. Save costs, minimize management costs, promotions and operating costs to have conditions to reduce lending interest rates to share difficulties with customers. Continue to resolutely implement solutions to remove difficulties in credit relations between credit institutions and customers to facilitate customers' access to bank credit capital according to the provisions of law such as restructuring debt repayment terms, reducing interest rates of old loans; consider exempting or reducing loan interest based on the financial capacity of credit institutions and the direction of the State Bank of Vietnam.

Hoang Vinh