The banking sector sacrificed profits to support the economy

DNHN - To date, the credit market has recorded impressive growth, exceeding 6.9% compared to last year. This shows that banks are actively pushing capital into production and business.

According to experts, the positivity in Vietnam's credit growth in recent times is mainly due to the flexible and decisive policies of the State Bank of Vietnam (SBV). Achieving the 15% credit growth target by the end of 2023 has created favorable conditions for commercial banks to be more proactive in providing credit. In particular, the SBV has implemented effective measures to gradually reduce interest rates, with current deposit rates at 3.84% per year, while the average new loan rate is 6.23% per year, significantly lower than at the end of last year.

In this context, banks have actively launched many preferential credit packages to support businesses and households. Specifically, OCB has introduced a loan package with preferential interest rates starting from 5.2% per year and a loan limit of up to 10 billion VND, facilitating investment projects and production expansion. ABBANK is equally active, offering a business loan package with interest rates from 4.99% per year and a commitment to fast disbursement within 3 days to promptly meet customer needs.

Agribank, one of the largest banks, has announced a special preferential package for customers with a total capital of over 100,000 billion VND. This loan package offers interest rates as low as 3.5% per year for short-term loans and 6.0% per year for medium- and long-term loans, helping to reduce the interest burden for customers and motivate investment activities.

Recent efforts by banks to implement preferential credit packages and adjust interest rates have created favorable conditions for businesses and households. Banks like OCB, ABBANK, and Agribank have made strong moves with attractive loan programs to support business development and production expansion. This support not only demonstrates the financial system's commitment to promoting the economy but also reflects the banking sector's positivity in creating conditions for business activities.

However, despite efforts to reduce lending rates, financial experts warn that the space for further rate cuts is very limited. According to Dr. Võ Trí Thành, deeper cuts in lending rates could put great pressure on banks' profit margins and affect operational safety. This could lead to financial stress, especially as deposit rates tend to rise.

In addition, adjustments from the FED may stabilize the domestic interest rate trend, making it difficult to lower interest rates further. The stability of domestic interest rates will depend on many factors, including pressure from deposit rates and the global economic situation, which banks and regulators need to carefully consider to maintain sustainable economic growth.

Amid rising bad debt ratios and increasing provisioning costs for banks, businesses and borrowers should not expect significant reductions in lending rates. These factors put great pressure on the financial system, making it more difficult to lower interest rates. Despite efforts to adjust rates and offer preferential credit packages, the banking sector must carefully consider financial sustainability to ensure long-term customer service.

To promote economic growth in the near future, the BIDV research group recommends maintaining an active and targeted fiscal policy. This includes accelerating public investment disbursement to stimulate the economy and expand access to capital for businesses. An active fiscal policy will help create a favorable business environment, supporting the development of businesses and households.

Therefore, in addition to adjusting interest rates, maintaining a flexible and effective fiscal policy plays a decisive role in promoting economic growth and sustainable development. Banks are trying to ease the financial burden on businesses and the public, but close coordination with fiscal policies will be a key factor in helping the economy maintain growth momentum and achieve long-term goals.

Phan Chinh