Implementing Solutions to Facilitate Enterprises' Access to Capital

In 2014, the domestic economy has recovered; however, recovery is still slow; besides, the banking operations in the province is facing many difficulties and challenges to achieve growth and removal of bad debts. However, along with comprehensive and efficient solutions and supports of the agencies and the stakeholders at all levels, the banking sector of the province has been gradually making efforts to meet the targets.

 

According to the State Bank of Vietnam, the province has mobilized VND41,356 billion from the entire industry, up 16.3 percent by the end of September. This is a high growth rate, higher than the current interest rate on average, so many commercial banks not only ensure liquidity but also have surplus funds. In the context of the low interest rates, the results are proving enormous efforts of the banking system in the province in the provision of capital raising solutions, especially the diversification of fund raising methods and working styles to build trust among the people. The rich capital lays a good foundation for commercial banks to expand lending and improve credit quality.

 

Although the manufacturing and business activities of enterprises are challenged with the low purchasing power, high inventory and limited ability to absorb the credit limit, the State Bank of Vietnam- Bac Ninh branch and the commercial banks of the province give many supports for the business activities of enterprises such as restructuring bad debts, and reduction of interest rates and borrowing costs for the businesses in the difficult situations. At the same time, the banks are actively reviewing and seeking new customers, as well as coordinating with each other to remove difficulties and obstacles and create favourable conditions for businesses to access credit sources. The SBV of the province in collaboration with other functional departments conducted a survey to capture information about business operations and the demand for loans, as well as the difficulties and obstacles of the enterprises in accessing credit before asking commercial banks to give support. In the conference to connect banks and enterprises, there were 5 commercial banks selected to give loans for 9 businesses with the total amount of VND500 billion. Thereby, this enables the businesses to obtain the supported loans to revive and boost their development. In parallel with the implementation of the supporting packages for the enterprises, SBV Bac Ninh is also implementing various programmes and the credit policies for various customers under the direction of the Government. In particular, the SBV Bac Ninh focuses on increasing the market share of the small and medium enterprises and the private clients.

 

In the future, the SBV Bac Ninh, under the direction of the Government, the provinces and the industry, continues to perform comprehensive and intensive monetary measures to promote the mobilization of the capital and boost the credit growth, coupled with the credit quality control that focuses on the NPLs to ensure banking security and promote economic growth to achieve the province's socio-economic objectives.