Illustrative image (Photo: VNA) Hanoi (VNS/VNA) - Commercialbanks should diversify their loan products, lower interest rates and simplifyprocedures to improve accessibility to official credit channels in an effort tokeep people away from illegal sources, Deputy Governor of the State Bank of VietnamDao Minh Tu said.
According to Ngo Hong Vuong from the Ministryof Public Security, “black credit” remained rampant in many localitieswith high rates, which were seriously affecting social order.
“Black credit” was now increasinglyassociated with organised crime and illegal debt collection measures, hesaid, adding that the punishments were not strong enough.
Deputy Minister of Public Security Nguyen VanThanh said that the focus would be placed on checking, investigating andhandling lending activities which were showing signs of violations, especiallypeer-to-peer lending and online lending apps and websites.
In the long term, it was necessary to improvethe legal framework for online lending and peer-to-peer lendingto increase punishments and tighten management, Thanh said.
Tran Lan Phuong, Deputy General Director ofthe Vietnam Bank for Social Policies, said that the bank was implementing anumber of solutions to expand credit for production and consumption withan aim to keep people away from “black credit”.
For example, a household could be providedwith loans worth up to 100 million VND (4,300 USD) without mortgaged assets.Poor, near-poor and households who just escaped from poverty could have lendingterms of up to 120 months.
Pham Toan Vuong, Deputy General Director ofthe Vietnam Bank for Agriculture and Rural Development (Agribank), said thatAgribank was pushing consumer credit services nationwide with simple documentrequirements.
According to Tu, the central bank would jointhe Ministry of Public Security to increase communication and improve awarenessof citizens of “black credit” as well as enhance accessibility to bankingservices, especially for those living in remote, rural and mountainous areas.
Tu urged credit insitutions to diversifytheir credit products, improve banking services, reduce rates and simplifylending procedures so that more people could get access to official loans.
With a nationwide network, creditinstitutions, financial companies and micro-finance organisations mustmeet the legitimate borrowing demand, especially of those with low incomeand who did not have bank accounts, Tu said.
Relevant ministries and organisations mustenhance cooperation to implement drastic measures in improving awareness aboutproblems and harms of “black credit”, Tú said, adding that strict punishmentsmust be implemented for violations in lending.
According to the World Bank’s report aboutease of doing business 2020, Vietnam ranked second in ASEAN and 25th out of 190economies in term of the ease of getting credit./.
According to Ngo Hong Vuong from the Ministryof Public Security, “black credit” remained rampant in many localitieswith high rates, which were seriously affecting social order.
“Black credit” was now increasinglyassociated with organised crime and illegal debt collection measures, hesaid, adding that the punishments were not strong enough.
Deputy Minister of Public Security Nguyen VanThanh said that the focus would be placed on checking, investigating andhandling lending activities which were showing signs of violations, especiallypeer-to-peer lending and online lending apps and websites.
In the long term, it was necessary to improvethe legal framework for online lending and peer-to-peer lendingto increase punishments and tighten management, Thanh said.
Tran Lan Phuong, Deputy General Director ofthe Vietnam Bank for Social Policies, said that the bank was implementing anumber of solutions to expand credit for production and consumption withan aim to keep people away from “black credit”.
For example, a household could be providedwith loans worth up to 100 million VND (4,300 USD) without mortgaged assets.Poor, near-poor and households who just escaped from poverty could have lendingterms of up to 120 months.
Pham Toan Vuong, Deputy General Director ofthe Vietnam Bank for Agriculture and Rural Development (Agribank), said thatAgribank was pushing consumer credit services nationwide with simple documentrequirements.
According to Tu, the central bank would jointhe Ministry of Public Security to increase communication and improve awarenessof citizens of “black credit” as well as enhance accessibility to bankingservices, especially for those living in remote, rural and mountainous areas.
Tu urged credit insitutions to diversifytheir credit products, improve banking services, reduce rates and simplifylending procedures so that more people could get access to official loans.
With a nationwide network, creditinstitutions, financial companies and micro-finance organisations mustmeet the legitimate borrowing demand, especially of those with low incomeand who did not have bank accounts, Tu said.
Relevant ministries and organisations mustenhance cooperation to implement drastic measures in improving awareness aboutproblems and harms of “black credit”, Tú said, adding that strict punishmentsmust be implemented for violations in lending.
According to the World Bank’s report aboutease of doing business 2020, Vietnam ranked second in ASEAN and 25th out of 190economies in term of the ease of getting credit./.
VNA
