Mr. Phan Le Thanh Long, CEO of AFA Group The credit door is not open for all loan needs

DNHN - Mr. Phan Le Thanh Long, chief executive officer of AFA Group, stated on the talk show "Following the Cash Flow" that deposit interest rates are one of the most influential factors in determining the reduction of lending rates

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"Currently, the deposit interest rate for 12-month terms at some banks is still above 9 percent per annum. Several large banks have recently reduced the interest rate to approximately 7% per year; however, it is difficult to reduce interest rates significantly due to external pressures, the economy, and inflation. When PMI rises again, capital demand increases and interest rates cannot mitigate the resulting shock.

Vietnam's current objective is to reduce interest rates by any means possible, as a rise in interest rates will hinder economic growth. Because 2023 is an uncertain year, with a greater degree of uncertainty than 2022, we must observe the pressure on inflation and fuel prices "said Mr. Long.

According to the CEO of AFA Group, not all low-interest deposits will have low lending rates. Not all sectors of the economy can be financed by low-interest rates. Because when lending, banks are most concerned with the loan's risk profile.

This will impact two decisions, one of which is the loan itself. Banks will have difficulty making lending decisions if the business is extremely risky, such as having a large bond balance, being financially unbalanced, or operating in extremely risky fields such as real estate, especially real estate projects that are legally or financially stalled. cash flow.

During the recent real estate credit conference, the SBV emphasized that there is no commercial bank that is lowering credit standards, i.e., easing credit conditions to lend more freely.

Second, when choosing a loan, what will the interest rate be? When lending to high-risk borrowers, banks must impose high-interest rates. Experts believe that if there is insufficient system liquidity and ineffective capital mobilization, anyone can borrow at any interest rate.

Regarding the real estate credit support package, Mr. Long stated that the proposed VND 120,000 billion SBV package adheres to the spirit of the banking industry, which is not to loosen lending conditions.

On the other hand, according to experts, the current interest rate environment is an opportunity for manufacturing companies to increase loans. Even if the interest rate is high, the business's selling price will be higher. Businesses benefit from exchange rates and customers, particularly in the export market.

The narrative explains how to increase the order's turnover rate. If doing so will shorten the loan period, the loan cost will not "eat into" the business's profit.

Regarding external pressure, Mr. Long stated that the Fed's decision to raise interest rates remains contingent on the actions of other central banks, including the ECB, BOJ, and even Vietnam, as the policy will impact the USD/VND exchange rate.

In 2023, however, the pressure on the exchange rate will not be excessive, allowing the SBV to develop flexible monetary policies for managing exchange rates and interest rates. With improved exchange rate conditions, pressure on interest rates will diminish. This will be a positive factor for the market this year, as there is no chance that the State Bank will raise the operating interest rate.

Thanh Ha T/hour

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