Illustrative photo. (Source: diachidoanhnghiep.com)HCMCity (VNA) - Strong efforts from the HCM City banking industry areneeded to complete its mission in 2017, a high-ranking official has said.
Speakingat a conference held in HCM City on January 17, Chairman of the city’s People’sCommittee Nguyen Thanh Phong said the “the banking industry for many years hasbeen considered the blood vessel of the economy and one of the most importantindustries of the city”.
Duringthe 2011-15 period, the city’s banking industry reached an annual growth of10.1 percent, ranking second among other sectors in growth.
“Thisyear, the city aims to collect 348 trillion VND (15.5 billion USD) for theState budget, an increase of 16.6 percent year-on-year, and an increase of 26 percentfor city collections,” he added.
Tocomplete its mission, Phong has told the State Bank of Vietnam (SBV) andcommercial banks to improve supervision and inspection of credit activities forreal estate projects and build-operate-transfer (BOT) transport projects;promote the restructuring of the banking industry; and settle bad debts.
“Increasingnetwork security, ensuring safety for customers’ assets and further mobilisinglocal residents’ savings are the most important tasks for SBV and commercialbanks,” Phong said.
ToDuy Lam, Director of SBV’s HCM City branch, said that in 2016, total assets ofthe banking industry in HCM City increased 14.4 percent to 2.9 quadrillion VND(126 billion USD), with 10.7 million bank cards, a year-on-year increase of 8.1percent; and 36,500 POS, or growth of 8.6 percent.
Thelocal banking sector’s bad debt ratio was 3.6 percent, a reduction of nearly 8 percentcompared with 2015.
“Lastyear, the monetary market and banking activities in HCM City remained stable,despite many unexpected events in the world’s economy, affecting the Vietnameseeconomy,” Lam said.
Bythe end of 2016, the deposit interest rate was 4.8-5.2 percent for dong undersix month terms, 6.6-7 percent for over 12 months, and zero for US dollarloans.
Theshort-term lending interest rate for five priority industries was around 7 percentand did not exceed 8.5 percent for other industries. It was 8.7-9.7 percent formedium- and long-term loans.
Theforeign currency exchange rate increased 1.23 percent compared with last yearand total remittances were around 5 billion USD.
“Theliquidity of the banking system remained stable and the safe operation indexwas ensured. Capital usage ratio was 82.9 percent,” Lam added.
Healso said that banking activities in HCM City achieved growth and development,in which outstanding loans increased 19.3 percent, the highest growth in recentyears.
“Bankingservices developed well and business results of financial institutionsimproved,” he added.
Retailbanking services and electronic banking like mobile and internet bankingachieved high growth of more than 50 percent compared with 2015.
“Activitiesthat helped solve difficulties for the business community were executed well,with total outstanding loans of 770 trillion VND (35 billion USD), an increaseof 10 percent over 2015, in which 145 trillion VND was borrowed at preferentialinterest rates,” Lam added.
TheBanking – Enterprises Connectivity programme allowed nearly 22,000 customers toborrow 281 trillion VND.
Lamalso warned that financial institutions in HCM City must be aware of potentialrisks, especially bad debt and slow restructuring, which could affect thesustainable and stable development of the banking system.
“Technologicalrisks also need more attention,” he said.
Thisyear, the banking industry in HCM City has set a goal of reaching 18 percentcredit growth, 16 percent growth of capital mobilization, and bad debt under 3 percent.
“Thebanking sector will continue to implement the credit programmes of theGovernment, SBV and the city,” Lâm added.
SBVGovernor Le Minh Hung said that SBV “would pay attention to bank restructuringand settling of bad debts in 2017”.
Lastyear, SBV restructured five “special” banks and ensured safe operation of theentire system.
“Wehave reviewed the last five-year period of restructuring and settling bad debtsand will release the next five-year plan soon,” he said.
Inaddition, SBV will work with agencies to map out a special law on supportingthe banking sector in restructuring and resolving bad debts, which will includelegal regulations.
Obstaclesin existing legal regulations will also be addressed under the new law toremove hindrances in resolving bad debts.
TheSBV has set a goal to gain credit increase of 16 percent for a growth of 16-18 percentin total payments, and will try to cut medium- and long-term interest rates, aswell as stabilise the foreign currency exchange rate.-VNA
Speakingat a conference held in HCM City on January 17, Chairman of the city’s People’sCommittee Nguyen Thanh Phong said the “the banking industry for many years hasbeen considered the blood vessel of the economy and one of the most importantindustries of the city”.
Duringthe 2011-15 period, the city’s banking industry reached an annual growth of10.1 percent, ranking second among other sectors in growth.
“Thisyear, the city aims to collect 348 trillion VND (15.5 billion USD) for theState budget, an increase of 16.6 percent year-on-year, and an increase of 26 percentfor city collections,” he added.
Tocomplete its mission, Phong has told the State Bank of Vietnam (SBV) andcommercial banks to improve supervision and inspection of credit activities forreal estate projects and build-operate-transfer (BOT) transport projects;promote the restructuring of the banking industry; and settle bad debts.
“Increasingnetwork security, ensuring safety for customers’ assets and further mobilisinglocal residents’ savings are the most important tasks for SBV and commercialbanks,” Phong said.
ToDuy Lam, Director of SBV’s HCM City branch, said that in 2016, total assets ofthe banking industry in HCM City increased 14.4 percent to 2.9 quadrillion VND(126 billion USD), with 10.7 million bank cards, a year-on-year increase of 8.1percent; and 36,500 POS, or growth of 8.6 percent.
Thelocal banking sector’s bad debt ratio was 3.6 percent, a reduction of nearly 8 percentcompared with 2015.
“Lastyear, the monetary market and banking activities in HCM City remained stable,despite many unexpected events in the world’s economy, affecting the Vietnameseeconomy,” Lam said.
Bythe end of 2016, the deposit interest rate was 4.8-5.2 percent for dong undersix month terms, 6.6-7 percent for over 12 months, and zero for US dollarloans.
Theshort-term lending interest rate for five priority industries was around 7 percentand did not exceed 8.5 percent for other industries. It was 8.7-9.7 percent formedium- and long-term loans.
Theforeign currency exchange rate increased 1.23 percent compared with last yearand total remittances were around 5 billion USD.
“Theliquidity of the banking system remained stable and the safe operation indexwas ensured. Capital usage ratio was 82.9 percent,” Lam added.
Healso said that banking activities in HCM City achieved growth and development,in which outstanding loans increased 19.3 percent, the highest growth in recentyears.
“Bankingservices developed well and business results of financial institutionsimproved,” he added.
Retailbanking services and electronic banking like mobile and internet bankingachieved high growth of more than 50 percent compared with 2015.
“Activitiesthat helped solve difficulties for the business community were executed well,with total outstanding loans of 770 trillion VND (35 billion USD), an increaseof 10 percent over 2015, in which 145 trillion VND was borrowed at preferentialinterest rates,” Lam added.
TheBanking – Enterprises Connectivity programme allowed nearly 22,000 customers toborrow 281 trillion VND.
Lamalso warned that financial institutions in HCM City must be aware of potentialrisks, especially bad debt and slow restructuring, which could affect thesustainable and stable development of the banking system.
“Technologicalrisks also need more attention,” he said.
Thisyear, the banking industry in HCM City has set a goal of reaching 18 percentcredit growth, 16 percent growth of capital mobilization, and bad debt under 3 percent.
“Thebanking sector will continue to implement the credit programmes of theGovernment, SBV and the city,” Lâm added.
SBVGovernor Le Minh Hung said that SBV “would pay attention to bank restructuringand settling of bad debts in 2017”.
Lastyear, SBV restructured five “special” banks and ensured safe operation of theentire system.
“Wehave reviewed the last five-year period of restructuring and settling bad debtsand will release the next five-year plan soon,” he said.
Inaddition, SBV will work with agencies to map out a special law on supportingthe banking sector in restructuring and resolving bad debts, which will includelegal regulations.
Obstaclesin existing legal regulations will also be addressed under the new law toremove hindrances in resolving bad debts.
TheSBV has set a goal to gain credit increase of 16 percent for a growth of 16-18 percentin total payments, and will try to cut medium- and long-term interest rates, aswell as stabilise the foreign currency exchange rate.-VNA
VNA
