Increased capital mobilization, difficult lending
In the first quarter of 2024, the banking sector's mobilization and lending situation faced many difficulties, with mobilization and outstanding loans both decreasing nationwide. As of February 20, 2024, mobilization nationwide decreased by 1.83%; credit nationwide decreased by 1.09%. In that context, Nghe An's banking sector still maintained a fairly good growth rate of mobilized capital and outstanding loans.
It is estimated that by March 31, 2024, the mobilized capital in the province will reach VND 241,069 billion, an increase of 3.75% compared to the beginning of the year. The total outstanding debt of credit institutions in the area is estimated at VND 288,811 billion, an increase of 0.9% compared to the beginning of the year.
Specifically: Outstanding loans for the rural agricultural sector and rural areas in the whole area are estimated at 136,826 billion VND, accounting for 46% of outstanding loans in the whole area; loans for high-tech agricultural development and clean agriculture under Resolution 30/NQ-CP are estimated at 20,208 billion VND, accounting for 6.8%; export loans are estimated at 2,474 billion VND, down 13% compared to the beginning of the year; loans under Decree 67/2014/ND-CP are estimated at 120 billion VND; outstanding loans for housing support under Decree 02/NQ-CP are estimated at 105 billion VND.
Although outstanding loan growth is better than the national average, lending activities are still quite difficult, at times, some banks have more payers than borrowers. At BIDV Bank Phu Dien Branch, the leader of this unit said that while mobilization is still growing steadily, lending is slow. Although lending interest rates have decreased sharply compared to 2023, many customers are having difficulty doing business, when it is time to repay the debt and do not borrow again; meanwhile, finding new customers is not easy.
The State Bank leader said that the low credit growth at the beginning of the year was mainly due to the seasonal factor of the Lunar New Year, when production and business establishments and enterprises were off for Tet, and the ability to absorb capital was not high. In addition to the seasonal factor of the first quarter falling during the Lunar New Year, this year there was another factor: the world economy had not really improved, affecting output factors. Many export enterprises had not been able to export their goods, while the domestic market was still difficult, so the demand for credit decreased.
According to a survey on factors affecting production and business of processing and manufacturing enterprises, the most difficult are still high domestic competitiveness, low domestic and international market demand, financial difficulties, outdated technology equipment, inability to recruit workers as required, lack of raw materials, fuel, materials, etc. Access to bank loans and interest rates are not major obstacles for enterprises today.
With low credit growth in the first quarter, in addition to capital for production to increase demand for the economy, many banks are promoting consumer loans with many preferential packages. Mr. Dung in Vinh city said that his family has just borrowed 500 million VND from BIDV Bank to repair the house; the loan term is 5 years, the interest rate in the first 2 years is 6.2%/year, after that the interest rate will float according to the market. In addition to the relatively low interest rate, the advantage of the loan package is that customers can pay off the loan in full within the first 2 years without being penalized for early payment.
Mr. Nguyen Xuan Thong - Director of the North Central region of VIB International Bank said: In the first 3 months of the year, the situation of mobilization and lending reflected the economic development cycle of the year. For VIB in the North Central region, since the beginning of the year, mobilization has grown well, reaching over 10% while lending has only increased by over 1%.
“Some large banks with a high proportion of corporate loans have seen their outstanding loan growth decrease recently due to difficulties in production and business, low demand for loans, and many businesses having to repay their debts. Meanwhile, joint stock banks mainly lend to individuals, so the impact is not much. However, the macro economy is gradually improving, which will have a positive impact on the economy in general and the business activities of the banking sector in particular.
Continue to support people and businesses
Implementing the direction of the Government and ministries, right from the beginning of the year, Nghe An Provincial People's Committee has synchronously deployed measures to strengthen investment and construction activities in the area, especially the speed of implementation of key projects with connectivity and influence. Thereby, creating jobs, stimulating the market, increasing budget revenue, contributing to socio-economic development, improving people's lives in the province. It is known that at many banks, at the beginning of the year, customers paid back a lot of loans, but from the end of March until now, the lending situation has gradually warmed up, outstanding loans have improved, and grown well. Capital demand has begun to show signs of increasing again.
In order to promptly provide capital for production and business needs, banks have launched many preferential credit packages specifically for business loans. Along with the sharp decrease in mobilization interest rates, lending interest rates have also been adjusted down by banks, creating conditions for people and businesses in need to access cheap loans.
The leader of the State Bank of Vietnam, Nghe An branch, said: Implementing Directive 01/CT-NHNN, the banking sector balances capital sources to meet credit capital needs for the economy, ensuring liquidity for the banking system, thereby contributing to solving difficulties, promoting the real estate market to develop safely, healthily and sustainably. Managing credit to meet capital needs for production and business in a timely manner, promoting the bank-enterprise connection program. Continuing to implement the VND 120,000 billion credit program for social housing, worker housing, renovation and reconstruction of old apartments according to Resolution 33/NQ-CP of the Government with lending interest rates 1.5% -2% lower than the average lending interest rates of banks.
Nghe An Provincial People's Committee has also announced a list of 02 projects that meet the legal conditions to access loans according to Resolution 33/NQ-CP. Up to now, Quang Trung Petroleum Urban Investment Joint Stock Company has no need to borrow capital from the bank because the project is in the stage of site clearance and resettlement. Kim Thi Real Estate Joint Stock Company has a need to borrow capital and has completed the procedures to borrow capital from the credit package of 120,000 billion VND...
According to the State Bank of Vietnam, Nghe An branch: Implementing solutions to support customers in restructuring debt repayment terms and maintaining debt groups according to Circular 02/2023/TT-NHNN, accumulated from April 24 to February 29, 2024, debt repayment terms have been restructured and debt groups have been maintained for 187 customers with a total debt value (principal and interest) restructured at VND 1,698.3 billion.
Nghe An Social Policy Bank effectively implemented preferential lending policies in the area, especially for lending to preferential programs using loan capital under Resolution 11/NQ-CP, disbursing 100% of loan programs for job creation, social housing, students buying computers, lending to preschools, and lending to ethnic minorities.
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