A Vietcombank office in the northern province of Bắc Ninh. — VNA/VNS Photo

BẮC NINH — Commercial banks in the northern province of Bắc Ninh have taken measures to meet surging financial demand of businesses and individuals for the final month of the lunar year, said banking executives.

Following the Prime Minister's directive on credit management in the last months of the year, the business community and commercial banks responded positively. The banks have devised plans to continue providing capital with reasonable interest rates for production, business, and end-of-year consumer needs. 

In addition, the banks have proactively developed flexible and tailored credit packages for each segment to meet the borrowing needs of customers. These measures will continue to significantly contribute to boosting economic growth in the last months of the year and the following years.

Nguyễn Thị Thu Hương, deputy director of Vietcombank Bắc Ninh, said Vietcombank's top priority is to ensure sufficient capital for production and business for enterprises and individuals in the province. 

Since the beginning of the year, the bank has created maximum conditions to help businesses and individuals borrow substantial capital to drive expansion. The credit balance of the branch reached VNĐ16 trillion or US$704 million, primarily for business production, representing a 24 per cent increase compared to the end of 2022.

To support small and medium-sized enterprises in expanding their operations and accessing low-cost funding, Việt Nam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) has implemented a preferential interest rate package of VNĐ15 trillion, with interest rates starting from 5.9 per cent per year. 

The credit package, launched in June 2023, offered reduced interest rates to align with economic conditions and better support business activities. Additionally, the bank increases incentives for enterprises engaged in import and export activities with favourable interest rates until July 31, 2024. This policy aims to alleviate difficulties for businesses in the face of ongoing market challenges, helping them optimise capital costs and enhance operational efficiency.

According to data from the State Bank of Vietnam (SBV), as of early November 2023, outstanding loans for priority programs and sectors amounted to VNĐ128.747 trillion. This includes VNĐ55.062 trillion for the bank-business connectivity program with 2,538 customers, VNĐ48.914 trillion for agriculture and rural areas with 126,676 customers, and VNĐ23.771 trillion for small and medium-sized enterprises with 2,434 customers.

Commercial banks in the province have implemented lending support with interest rate subsidies from the state budget, according to Government Decree 31 and Circular 03 of the SBV, to 22 customers with a total subsidised debt of VNĐ3.451 trillion.

According to the SBV, the maximum short-term lending interest rate in VNĐ for certain priority sectors is relatively low (4 per cent per year). At a conference addressing solutions to resolve difficulties in credit growth for production and business held in early December, the leaders of commercial banks continued to focus on key solutions related to monetary and fiscal matters. 

They emphasised stronger support for enterprises and individuals, particularly in priority industries and sectors. These solutions include unlocking credit sources, investment facilitation, and measures to stimulate consumer demand. This provides a basis for commercial banks to reduce lending interest rates, allowing businesses and individuals to access low-interest capital. 

The interest rate landscape for loans from commercial banks has already decreased by approximately 1.5-2.0 per cent per year compared to the end of the previous year. Further reductions are anticipated, thanks to delayed policy adjustments following the recent series of interest rate cuts on mobilisation activities by commercial banks. The adjustment of lending interest rates by commercial banks or the implementation of preferential programs is seen as a proactive measure to anticipate the surge in credit demand when individuals and businesses require capital for seasonal operations, especially in preparation for the upcoming Tết. — VNS