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Misfortune knocks on fourth-group banks’ doors
It’s now the most difficult time for the fourth-group banks, the ones that are considered as the worst banks and not allowed to obtain credit growth in 2012.
As the names of the banks belonging to the first, second and third groups have been released; the fourth-group banks have also shown their faces.
Officer of a fourth group bank complained that the bank is experiencing the toughest days in its operation. “We cannot grow our outstanding loans, while other banks have been trying to scramble for our clients,” he said.
Some joint stock banks belonging to the first and second groups, have obtained the list of the fourth group banks somehow, and have taken actions to lure more customers. At a branch of a first group bank, the officer showed the list of the fourth group banks to a client and said: “You’d better to deposit money at our banks, and don’t deposit at the fourth group banks, or you will lose lock, stock and barrel.”
Since the deposit interest rates offered by commercial banks are now the same at 14 percent per annum, people would prefer depositing money at prestigious banks to feel secure about their money. As a result, the money has been leaving the fourth-group banks.
The banks are also bearing another hard pressure – the strict supervision from the State Bank. A bank officer said that just one day after receiving the notice from the State Bank about the classification, a supervision team from the State Bank has been sent to the bank. The officials sit here at anytime and keep a close watch over every dong in and out. All the invoices and books have been supervised very strictly, which has made bank officers feel inconvenient.
Especially, even the third-group banks – the banks that can have the 8 percent credit growth rate in 2012 - have also suffered.
An officer of the bank complained that the bank has faced too many bad rumors recently. “Habubank was the first bank which declared loss for the fourth quarter of 2011. The bank always aims to the transparency and we try to improve ourselves,” the officer said, adding that though taking a loss in the fourth quarter, the bank still could make a profit of 300 billion dong in 2011 as a whole.
Banks flex their muscle to struggle for survival
Under the Instruction No. 1 by the State Bank, the banks belonging to the fourth group are not allowed to increase their outstanding loans in 2012. Therefore, their operation heavily depends on the debt collection.
The banks have set up the taskforces in charge of collecting debts. In the past, the banks only urged clients to pay debts when the borrowers were late by a couple of weeks in payment. Meanwhile, the banks now send the notices to the borrowers to remind them of the debts, which will become matured only after one week.
However, as the deputy general director of a bank admitted, it is not easy to collect debts in such conditions. In many cases, banks foresee that the debts are irrecoverable, because the borrowers cannot pay. Meanwhile, it will take a long time to fulfill the complicated procedures to liquidate the mortgaged assets. Especially, it is nearly impossible to sell the assets if they are land or houses, since the real estate market is gloomy.
Some fourth group banks have changed their operation targets, shifting to focus on the retail banking and upgrading the services’ quality. However, analysts say developing retail banking is a long process which requires the heavy investment in the core banking system and the tangible network, which means that the banks cannot reap fruits immediately from the new activities.
In order to “please” the State Bank, some fourth group banks have launched the credit programs to provide loans to agriculture production and small businesses. The moves aim to make the watchdog agency understand that the banks are trying to cure themselves and to follow the tracks set up by the State Bank. Of course, the banks hope they would be able to jump into higher grades after six months.
vietnamnet
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