Expand credit to prevent usury, central bank asks

A man reading an advertisement for lending services. The State Bank of Việt Nam has asked domestic credit institutions and foreign banks’ branches to expand credit for business, production and consumption as an effort to prevent usury. — Photo baodauthau.vn

HÀ NỘI — The State Bank of Việt Nam has asked domestic credit institutions and foreign banks’ branches to expand credit for business, production and consumption as an effort to prevent usury.

In a recently-issued Document No 10340/NHNN-TD, the Governor asked credit expansion to focus on production and business as well as prioritised sectors.

Banks must diversify their credit products with reasonable interest rates to meet the legitimate demand for production, business and consumption, the central bank said, asking simplification of administrative procedures to improve access to credit for enterprises and citizens.

The Governor asked the Bank for Agriculture and Rural Development to speed up the implementation of a consumer credit programme worth VNĐ5 trillion (US$215.5 million).

The Bank for Social Policies would propose a pilot programme for consumer credit for approval with a focus on lending to poor, near-poor and ethnic minority households, according to the central bank.

Financial companies must ensure transparency in interest rates. — VNS