With the goal of safe and effective credit growth, non-state joint stock commercial banks in the province have focused on developing in the right direction, promptly meeting the capital needs of the economy, directing credit to production and business sectors, priority sectors and growth drivers under the direction of the Government and the State Bank. Joint stock commercial banks always accompany businesses to remove difficulties, help businesses access low-interest loans, and promote production and business development.

Customers transact at Loc Phat Vietnam Joint Stock Commercial Bank (LPBank) Phu Tho Branch.

There are currently 12 non-state commercial banks in the province. In recent times, commercial banks have focused on comprehensively innovating governance, policy mechanisms, business processes, and preferential policies. Banks have also digitized their products and services to customers to create more favorable conditions for businesses and individuals to access bank credit capital.

In particular, commercial banks have implemented preferential interest rate credit packages for each customer group and have appropriate interest rate policies to support customers to overcome difficult times and increase access to credit sources. As of the end of August, the total outstanding loans of the commercial banks group reached nearly VND 14,500 billion, an increase of more than VND 1,100 billion compared to the end of 2023, of which short-term loans were more than VND 8,700 billion and medium and long-term loans were more than VND 5,700 billion.

In the context of businesses facing difficulties due to the impact of the global economic recession, most recently the damage caused by storm No. 3, commercial banks have been and are continuing to restructure debts and waive interest rates for customers in real difficulty according to the directive of the State Bank in Circular 06/2024/TT-NHNN dated June 18, 2023 amending and supplementing Circular 02/2023/TT-NHNN dated April 23, 2023 "On restructuring debt repayment time and maintaining debt groups to support customers in difficulty". With specific measures such as debt forgiveness, reducing interest rates on old debts and new loans, bank credit officers and business owners have proactively met to discuss and find solutions to remove difficulties for businesses.

Along with the positive moves of the bank, the business community is also gradually changing in many aspects. Mr. Dam Dac Tien - Permanent Vice Chairman of the Provincial Association of Small and Medium Enterprises said: “The bank itself is also a business. When the business community weakens, it leads to the decline of the banking system. Therefore, businesses also understand and share the difficulties with the bank. The Association, together with member businesses, has implemented many measures to overcome weaknesses such as business management capacity, building long-term investment and production plans, with specific strategies and goals. Implementing asset restructuring in a legal and accurate manner, clearly and transparently in financial reports. Thereby, each business has found it easier to access credit capital from banks. Businesses also hope that banks will continue to reduce administrative procedures, be more flexible in valuing collateral assets, and expand credit limits so that businesses have the opportunity to expand capital sources for production and business development”.

According to Mr. Pham Truong Giang - Director of the State Bank of Vietnam Provincial Branch, banks closely follow the direction of the State Bank, take advantage of the attention of the superior bank to continue to drastically, practically and effectively implement support solutions, creating favorable conditions for customers to access credit capital, meeting production and business needs. Continue to promote specific credit programs and policies, remove difficulties for businesses and people. In particular, banks proactively review and summarize the damage of customers who are borrowing capital due to storm No. 3, on the basis of closely following the direction of the superior bank to promptly implement support measures, remove difficulties for customers such as: Restructuring debt repayment terms, considering exemption and reduction of interest rates, continuing to provide new loans to restore production and business after storms and floods.

Trinh Ha