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Banks shrug off diffidence over lending
Many banks in HCM City have begun lending aggressively in the new year with an eye on their credit growth targets for the year.
They have also begun lending to non-priority sectors, something they had refrained from for many months.
Sacombank has lent VND50 billion (US$2.4 million) to small and medium-d firms, individuals, and households at moderate interest rates of 11-12 per cent.
It has also earmarked VND1 trillion ($48.7 million)for retail borrowers for buying, repairing, and building houses at 9 per cent per year for the first two months.
Several others like HDBank, Vietcombank, VIB, VPBank, Ocean Bank, and HSBC Viet Nam are also offering credit on easy terms, mostly consumer loans.
Vietcombank has earmarked VND2 trillion ($96 million) for personal loans at 13 per cent, and HSBC Viet Nam is offering home buyers loans at 9 per cent for the first three months.
Ocean Bank has cut the interest rate on mortgages to 13.5 per cent.
According to banking insiders, the 12 per cent credit growth target set for the year by the central bank is feasible especially since demand is seeing positive changes.
Many businesses showed signs of recovery by expanding production late last year, they said.
If this recovery holds in the coming months it would enable the economy to revive, they said.
A securities firm executive said things are looking up and banks would not find it difficult to achieve their credit growth targets.
The Government's policies on bank lending are aimed at achieving higher credit growth rates in 2013 and loosening lending to sectors that were earlier ignored.
Inflation is under control and the economy generally looks more stable, all favourable conditions for bank lending to recover from the dire situation of last year.
Recent Government policies like Resolutions 01 and 02 are also expected to help the economy in general and businesses recover, encouraging the banking sector's growth.
The former spells out key measures to achieve the socio-economic plan and budget targets for 2013, while Resolution No 2 is about overcoming businesses' difficulties, reviving the markets, and resolving bad debts
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