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SBV checks out lending portfolios
The State Bank of Vietnam (SBV) on October 28 asked its own branches, as well as all Vietnamese banks, joint venture banks and foreign banks in Vietnam to report credit activities, outstanding loans and lending interest rates of the dong.
Banks must show the percentage of loans charged at over 19.5 percent, at 18-19.5 percent, at 17-18 percent and under 17 percent per year as of October 28.
The latest order by the central bank was designed to ensure domestic banks create favourable conditions for cash-strapped local companies to access bank loans.
Central bank branch directors must report the credit status of enterprises, businesses, households and banks in each province/city to the State Bank.
These directors must include information about loan structures, loan duration and the total number of outstanding loans as of October 25.
SBV bank branches must report the number of approved loan applications out of the total number of applications for October, including an explanation for rejected applications.
All reports must be received by the State Bank no later than October 30.
Last week, the central bank signaled a somewhat looser monetary policy, doubling interest rates to 10 percent annually for compulsory commercial bank reserves and paying off treasury notes worth VND20.3 trillion issued to local banks in March.
The move was intended to help domestic banks increase funds to cut lending interest rates. However, several provinces and business associations reported via the State Bank’s hot-line that it was still difficult to get bank loans because the bank’s interest rate reduction was not enough.
According to SBV statistics released on October 23, State-owned banks generally charged loans at 18.5 percent per year, down 0.5-1.7 percentage points. For preferential customers, lending interest rates stretched from 16.8-17.2 percent annually. Joint stock banks generally cut lending rates by 0.5-1.0 point to under 19.5 percent per year.
VOV
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