Credit growth slow at the beginning of the year

The economy 's poor capital absorption capacity has slowed the credit growth rate of Ha Tinh's banking system in the first months of the year. As of February 15, outstanding loans in the whole area reached VND96,465 billion, up only 0.43% compared to the end of 2023.

Customers come to make transactions at Vietcombank Ha Tinh.

Mr. Duong Quoc Khanh - Head of Corporate Customer Department (Vietcombank Ha Tinh ) said: “From the beginning of 2024, the branch has proactively implemented many synchronous solutions to increase credit growth such as: simplifying procedures and loan time; improving appraisal efficiency to lend to customers with feasible business plans; reducing lending interest rates to low and stable levels in the market. In addition, the unit also diversified credit packages to serve production and business investment; ensuring living needs such as: buying houses, land, cars, consumer loans... However, due to the low credit demand of the economy in the first months of the year, production and business activities of the business community and cooperatives are facing many difficulties and the consumer loan demand of people is decreasing, so the credit balance of Vietcombank Ha Tinh is decreasing slightly compared to the beginning of the year".

Accordingly, as of February 20, 2024, the total outstanding debt of Vietcombank Ha Tinh reached VND 14,958 billion, a decrease of VND 232 billion compared to the beginning of the year. Vietcombank Ha Tinh's strength is lending to businesses, so the branch will continue to monitor and listen to the opinions of the business community and cooperatives in the area to promptly grasp difficulties and have solutions to support and motivate businesses to increase investment in the new year.

In 2024, Agribank Ha Tinh II Branch aims to increase credit growth by at least 10% compared to the end of 2023. Right from the first months of the year, this "bank" has drastically implemented many credit programs of the Agribank system such as: preferential consumer loans with interest rates for individual customers with a scale of 10,000 billion VND, short-term loans for individual customers serving production and business activities with a scale of 30,000 billion VND, preferential loans for small and medium-sized enterprise customers in 2024 with a scale of 10,000 billion VND... In addition, Agribank Ha Tinh II Branch also "runs" its own credit programs, typically the "Green Credit" package to support young people to start a business...

According to Mr. Nguyen Thanh Quang - Head of Planning and Risk Management Department, Agribank Ha Tinh II Branch: The disruption of global supply chains due to the impact of the economic recession and the conflict between Russia and Ukraine has caused many businesses (especially export businesses) to face difficulties and challenges such as: increased production costs while prices do not increase, large inventories... forcing businesses to reduce their scale of operations. In addition, due to the impact of the economic recession, people's shopping and consumption needs have decreased, so the demand for loans has also decreased. Accordingly, the outstanding debt of Agribank Ha Tinh II Branch as of February 21, 2024 reached VND 13,748 billion, a decrease of VND 65 billion compared to the beginning of the year.

Credit growth slow at the beginning of the year

Outstanding debt of Agribank Ha Tinh II Branch as of February 21, 2024 reached 13,748 billion VND.

According to the reflection, currently, in addition to the "big guys": Vietcombank, Agribank, BIDV, VietinBank, the joint stock commercial banks in Ha Tinh such as: HDBank, Bac A Bank, ACB, Techcombank... are also facing difficulties in developing outstanding loans.

According to data from the State Bank of Vietnam (SBV) Ha Tinh Province Branch, as of February 15, 2024, outstanding loans in the whole area reached VND 96,465 billion, an increase of only 0.43% compared to the end of 2023.

According to experts, as well as the whole country, the stagnation in credit in the first months of the year in Ha Tinh is a natural phenomenon, usually during the traditional Tet holiday, credit does not increase. In addition, in the first months of the year, due to the weak capital absorption capacity of the economy, difficulties in businesses, low consumer demand... are the fundamental reasons for slow credit growth.

It is known that in 2024, the Ha Tinh banking sector aims to increase credit balance by 14% or more compared to the end of 2023; the ratio of bad debt/total outstanding debt is below 2%. In the coming time, the State Bank of Vietnam, Ha Tinh Branch, will continue to direct credit institutions in the area to direct credit to production, business, priority sectors and economic growth drivers according to the Government's policy. At the same time, continue to implement solutions to facilitate customers in accessing credit capital, simplify lending procedures, publicly and transparently list loan procedures and processes; ensure safe and effective credit activities.

Credit growth slow at the beginning of the year

In addition to the efforts of the banking industry, solutions from all levels and sectors are needed to remove difficulties for the business community.

In addition to the efforts of the banking sector, fundamental solutions from all levels and sectors are needed to remove obstacles and difficulties for the business community and cooperatives. Accordingly, it is necessary to create an open and favorable legal corridor for business operations; promote solutions to support businesses in improving their competitiveness in the market and participating in the global value chain; and have solutions to stimulate domestic consumption... thereby effectively promoting credit growth.

Thao Hien

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