market movements
Thu Lan
Push back “black credit” in Vietnam measures to improve the communication activities to raise people's awareness about lending mechanisms, policies, and banking services.
"Black credit" has developed complicatedly and affected social security and order. A workshop on pushing back black credit and promoting the official credit channel discussed solutions to addressing this problem.
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peaking at the workshop, Mr. Dao Minh Tu - the Standing Deputy Governor of the State Bank of Vietnam shared that the formulation of the legal regulations against “black credit” activities has achieved positive results, helping to strengthen the state management. Credit institutions have diversified their approach to expanding and improving credit quality through close coordination with local authorities, social and political organizations.
Credit for the economy, especially for vulnerable subjects who may be victims of "black credit", has been maintained at a relatively high growth rate. The banking sector has made strong efforts to expand the networks to provide timely banking products and services, with a focus on measures to enhance the accessibility to bank loans, promptly supporting Covid-19-affected customers. Since 2019, the SBV has promulgated 85 legal documents, including amendments to existing legal documents, as well as new legal regulations to enhance the accessibility to official credit channels. To develop the banking networks, since 2019, the SBV has licensed the establishment of 29 new branches and representative offices of the credit institutions. So far, Vietnam's banking system has 124 credit institutions and nearly 1,200 people’s credit funds. The central bank has also conducted
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B I D V review
According to the State Bank, by the end of October 2021, the credit balance of the whole economy had reached more than VND9.99 quadrillion (USD436 billion), an increase of 8.72 percent compared to the end of 2020 - a remarkable result in the context of the Covid-19 pandemic. Notably, credit institutions boosted lending for life needs and consumer loans. 78 credit institutions participated in providing personal loans with outstanding loans of nearly VND1.95 quadrillion (USD85.2 billion), accounting for 19.6 percent of the total loans of the whole economy, and up 5 percent compared to the end of 2020. Mr. Le Ngoc Lam, chief executive officer of BIDV, shared: BIDV has continuously implemented measures in accordance with the policy of the Government and the State Bank to push back black credit, and support people to access bank loans, especially during the Covid-19 pandemic. BIDV has boosted retail banking with retail loans increasing from VND38 trillion (USD1.7 billion) in 2011 to VND496 trillion (USD21.7 billion) as of 31 October 2021 (accounting for 38 percent of total outstanding loans of BIDV) – a 12-time growth over the past 10 years.
