Improving relationship between banks and enterprises
Updated at Friday, 03 Nov 2017, 14:24
The Hanoitimes - In order to get bank loans, enterprises has to improve in various aspects in addition to supports from administrative agencies.
Over the years, as commercial banks put priority in government bonds and treasury bill, instead of giving out loans, many enterprises are in need of capitals for production and business expansion cannot get the necessary fund, especially small and medium enterprises (SMEs).
The amount of more than 52 billion USD enterprises got from commercial banks in 4 years through the program connecting banking – enterprises recently announced by the State Bank of Vietnam (SBV), is considered to be a positive sign when both enterprises and banks have changed their mindset and working method to get closer to each other’s demands. However, in order to get bank loans, enterprises has to improve in various aspects in addition to supports from administrative agencies.
Enterprises and banks are in need of each other and the development of each is a win win situation.
The recent announcement of SBV showed that, as of present, there are 22,000 enterprises get loan from the program connecting banking – enterprises. Specifically, commercial banks are committed to lend enterprises more than 570 trillion VND and has disbursed approx. 550 trillion VND. Interest rate for short term is ranging from 6 – 9% per year, midterm and long term is 8 – 10% per year. Moreover, commercial banks also offer multiple supports, such as to reduce lending rate for existing loan with an amount of nearly 20 trillion VND.
With the active supports from SBV, in the first 9 months of 2017, credit growth of the economy has increased 12.16% compared to the same period of last year, which is quite high compared to recent years. In which, credit growth in agriculture has increased 17.6%, industry increased 17.75%, construction increased 19%, commerce and services increased 18.1%.
Lending for SMEs until the end of August contributed to 21% of the economy. Credit growth has support for GDP growth in the first 9 months, which increased 6.41% and higher than the growth rate of 5.99% in 2016. In particular, commercial banks has prolonged payment period, restructuring debt payment period and reducing lending rates for existing loan of customers with total amount of nearly 88 trillion VND. As such, this has supported thousands of enterprises to expand production and business.
It goes without saying that capital is vital for enterprises’ survival, as 80% capital of the economy is based on banks lending and 80% revenue of the banks is from lending, in which the majority is to lend for enterprises. As such, enterprises and banks are in need of each other and the development of each is a win win situation.
As such, banks should put more trust in enterprises. Many enterprises in difficult period but after getting loan from banks have developed and repay the debt fair and square. In recent years, most of commercial banks have supported and accompanied enterprises. With the program connecting banking – enterprises of SBV, the relation between banks and enterprises have become more close. With new mindset, enterprises consider banks as a kind of enterprise, and banks are where enterprises to have more knowledge with regard to finance, digital technology application, supporting enterprises to save time, cost and concentrating on production and business.