Black credit: Sanctions, penalties are not deterrent enough

	Banks expect higher credit growth limits
	117 business conditions in Finance sector shall be reduced and simplified
	AMC is entitled to purchase debts of other credit institutions

The online conference to implement the Government's Decree No. 116/2018 / ND-CP on credit policies for agricultural and rural development and solutions of the banking sector to contribute to limiting black credit

According to Mr. Tam, black credit has appeared a long time ago. Many people consider it as a "storm" sweeping rural and remote areas, but this situation also takes place in cities and industrial parks. In particular, black credit is also active in regions which are planned to set up special economic zones.

Black credit is associated with high interest rates, crimes and law violations and criminal gangs. These organizations and individuals lend money quickly and use a gangster to collect debts illegally, even kill people, cause troubles and threaten with terrifying messages. They abuse laws and never write interest rates in credit contracts, and offer short-term loans (daily or weekly loans).

Loan borrowers are mainly poor people, students, small business households, gamblers and illegal investors and so on.

"In fact, according to incomplete statistics, in 2018 the country had 84 murder cases nationwide, 855 cases of intentionally inflicted injuries, 355 cases of property robberies, and 1,309 cases of fraud for property robbery related to black credit …," Mr. Pham Van Tam informed.

Mr. Pham Van Tam said, the reason was due to the great demand for loans by people and enterprises for production and consumption, but the products of banks and Financial institutions are not satisfactory yet, and the procedures are not convenient. Meanwhile, the black credit loans are easy, fast, and without collateral.

Besides, the people has an abundant money source and they are also attracted by the benefits from black credit lending. At the same time, a small number of young people who are morally degraded and gamblers, are unable to access a legitimate source of money, so they have to access black credit. Propaganda on black credit is considered incomplete.

Sanctions and penalties are not deterrent enough and the management of conditional business lines of some localities is not strict.

Regarding the solutions to limit the black credit in the immediate future, Mr. Tam said that it requires the participation of the political system. Currently, the Prime Minister is assigning the Ministry of Public Security to issue directives for black credit crimes. Accordingly, clearly stipulating the responsibility of ministries and agencies, especially the Ministry of Public Security. "Currently we are investigating each criminal gang and each criminal organization associated with the crime attack peak," said Mr. Tam.

Regarding the responsibility of the banking sector, the representative of the Ministry of Public Security said that the procedures for loans to people from the banking system have not been very popular, so most people in need have not yet accessed. The banking sector should actively contact people who need loans.

In particular, Mr. Tam said, "It is very difficult for the Police Department to find out information of customers managed by banks when a case has not been prosecuted. But through investigation and destruction of a number of criminal gangs involved in black credit, there were signs that banks reveal information of hundreds of thousands of customers, such as the recent case of Nam Long Finance Company. Therefore, it is necessary to pay attention to the moral and negative issues of bank officials.”

Credit growth in the next 3 years is forecasted at 14%

Mr. Tam also said that with some cases of high interest rate loans, some localities requested inspection on interest rate but the inspection time was prolonged. It took two months to inspect the case for Nam Long company. Thus, when an inspection conclusion was issued and an arrest warrant was released, the criminals had escaped. Accordingly, Mr. Tam asked the Governor of the State Bank to direct banks to implement this procedure quickly.