Available Capital Is Ready for the Economy

9:43:03 AM | 29/9/2020

As an economic, financial and service center in the Mekong Delta, Can Tho is home to most commercial banks. The diversified banking industry network has created favorable conditions for capital mobilization from the people and timely supply of capital needs for production, business and consumption activities.

Strongly developed network and services

Mr. Pham Van Nhieu, Deputy Director of the State Bank in Can Tho City, said: The city banking system currently has 46 credit institutions and seven people's credit funds, with 253 transaction points covering five districts and four towns. In addition, the Social Policy Bank has transaction points in communes to support policy beneficiaries to borrow capital. Along with the extensive network, services are also growing with 380 ATMs of 41 bank branches; 2,275 POS (including 2,246 POS links) of 31 financial service providers and 1,323,805 issued cards in operation.

Funds mobilized as of June 30, 2020, amounted to VND84,228 billion, up 3.61% compared to the end of 2019, of which, short-term mobilized capital accounted for 67.46%, capital mobilized over 12 months accounted for 32.54% . Total outstanding loans as of June 30, 2020 were VND94,928 billion, up 3.94% compared to the end of 2019, in which short-term loans accounted for 52.18%, up 2.61%; medium and long term loans accounted for 47.82% of total outstanding loans, up 5.44% compared to December 2019. According to the Governor's direction, credit institutions in the area are concentrating capital on priority areas, solving difficulties for businesses.

Actively supporting businesses

In early 2020, following the instructions of the Government and the State Bank, the system of local credit institutions actively implemented credit programs to support people and businesses affected by the COVID-19 pandemic with lending rates falling sharply by 0.5 - 2.5%. Even commercial banks also reduced lending interest rates by 3-4%/year.

The new lending rate for production and business activities create favorable conditions for customers to borrow money, but do not loosen or lower credit conditions to ensure credit quality. In addition, the entire banking system has also been active in exempting and reducing fees for some payment services to support people and businesses affected by the COVID-19 pandemic.

Credit institutions in the province have restructured repayment terms, considered interest exemption or reduction according to current regulations such as reducing interest rates by 0.5 - 3% compared to the normal interest rate level, depending on the extent of customer losses, or launching new credit programs with many incentives for customers in areas that were greatly damaged by the COVID-19 pandemic. By the end of June 2020, accumulated new loan sales from January 23, 2020, reached VND16,305 billion for more than 4,491 borrowers affected by COVID-19; rescheduled loan balance was VND2,074 billion for more than 1,155 affected customers.

The State Bank Can Tho and local credit institutions have coordinated with Can Tho City People's Committee to meet and hold dialogue with businesses to discuss and resolve problems, and to remove difficulties in borrowing capital to help businesses cope with the impact of the pandemic on production and business.

Source: Vietnam Business Forum