Increasing access ability to capital through electronic lending method

VCN - Circular No. 06/2023/TT-NHNN amending and supplementing a number of articles of Circular 39/2016/TT-NHNN dated December 30, 2016 of the State Bank of Vietnam on regulations on lending activities has added a separate section for lending activities by electronic means.
SBV Governor explains high lending rates, credit room management SBV Governor explains high lending rates, credit room management
The “big banks” continuously reduce lending interest rates, pushing up credit demand The “big banks” continuously reduce lending interest rates, pushing up credit demand
Supplement regulations on lending activities: Credit barriers or tighter risk control? Supplement regulations on lending activities: Credit barriers or tighter risk control?
Many banks have initially implemented lending by electronic method. Photo: MSB
Many banks have initially implemented lending by electronic method. Photo: MSB

It is expected to facilitate banks and increase access ability to capital for enterprises

Circular 06 is considered to promote credit institutions to apply technology and further digitalize their lending activities, thereby shortening processes, procedures, and borrowers. Customers do not have to go to the bank, it is easy and convenient to access loans in a faster time and more convenient way. These regulations will create a positive signal for the development of consumer lending and production and business activities in Vietnam.

In fact, many banks have implemented lending by electronic means. For example, Agribank has actively promoted solutions to improve loan documents and procedures, and non-cash solutions in credit activities through the automatic debt collection system Center cut. In addition, Agribank is in the process of completing the Electronic Banking Project (Internet Banking), in which: applying technology and automation methods in the loan origination process, managing problematic debt, and secured asset management.

BIDV also applies electronic means from receiving loan requests (ibank) to creating, implementing, and managing loans. BIDV aims to enhance automation in the credit granting process, application of technology in customer management, and financial analysis...

Vietcombank has introduced the CLOS system to support the approval of loan initiation for wholesale customers, the RLOS system to support the approval of loan initiation for retail customers...; at the same time, studied the application of digital signatures in credit appraisal.

MB is also implementing lending activities on many different transaction channels such as App MBBank, Biz MBBank... or linking with third-party systems such as Mcredit Finance Company. Based on available customer information sources from channels, MSB builds an automatic credibility scoring system, automatically measures the bankrupt probability of customers in batches, and applies pre-approval in batches to reach customers through automated marketing channels. Techcombank has also developed and applied a number of stages in the credit granting process based on the IDC system, including credit appraisal and approval for real estate loans for project houses.

NCB also uses the iLos system in managing and circulating records to help manage and store records centrally, and accelerate and manage the process of processing records at each stage and level of processing. SHB's basic automation platform is the CORE system, which can automatically calculate, monitor and manage loans; the reporting system automatically responds to the data demand according to the needs of loan management. VPBank also implemented overdraft lending services for online corporate customers, online limit disbursement…

According to the State Bank of Vietnam, commercial banks have generally recognized the widespread application of electronic means to the lending process. Most banks have applied electronic means to one or several stages of the lending process. Credit institutions tend to consolidate and promote the comprehensive and synchronous application of information technology systems, expanding the digital ecosystem; continue to invest in research, improvement, and application of solutions and digitization technology towards improving the automation of the lending process.

According to Assoc. Prof. Dr. Nguyen Thi Mui, a member of the National Monetary and Financial Policy Advisory Council, with the addition of e-lending, loans would be reviewed online, which would facilitate enterprises' access to credit, thereby extending credit to the whole economy.

At the same time, to ensure safety when lending by electronic method, Circular 06 also amends and supplements a number of other terms to suit this form of lending. For example, regulations on principles to ensure the requirements of security, safety, protection, confidentiality, information technology system safety standards, and risk management in the electronic environment; regulations on identification and verification of customer identification information by electronic means (eKYC); regulations on the outstanding loan balance for an individual customer not more than 100 million dongs; regulations on appraisal, agreement, loan documents...

However, there are also opinions that, in order for banks to be able to deploy lending by mass electronic means, and widely apply electronic means to the lending process, it is necessary to require investment resources, specific operation scale, and a development plan of the credit institution, a roadmap, research, and test before applying widely.

By Huong Diu/ Binh Minh

Related News

Efforts to remove obstacles to upgrade the stock market

Efforts to remove obstacles to upgrade the stock market

VCN - According to the sharing of Ms. Vu Thi Chan Phuong, Chairwoman of the State Securities Commission (SSC), in addition to completing the main criteria of international rating organizations in upgrading the stock market (TTCK), the State Securities Commission (SSC) continues to improve domestic regulations on the basis of researching international regulations and practices to promote Vietnam's stock market to develop in a sustainable direction, creating a favorable environment to attract international investors and foreign indirect investment capital flows.
"Closing" 2023, public investment disbursement reached 93.12% of the assigned plan

"Closing" 2023, public investment disbursement reached 93.12% of the assigned plan

VCN - According to a report from the Ministry of Finance, the estimated payment for public investment capital of the whole country by the end of January 31, 2024 (the deadline for disbursement of the 2023 capital plan) reached 82.47% of the year plan and reached 93.12% of the plan assigned by the Prime Minister.
Proposing for state-owned enterprises to divest capital from loss-making enterprises

Proposing for state-owned enterprises to divest capital from loss-making enterprises

VCN - The Ministry of Finance is proposing to amend regulations on removing obstacles for enterprises in which the State holds more than 50% of charter capital in the direction of building a legal basis for these enterprises to divest capital from other enterprises suffer losses or have accumulated losses.
Prevent risks from securities companies mobilizing capital from investors

Prevent risks from securities companies mobilizing capital from investors

VCN - The State Securities Commission (SSC) issued an official dispatch requesting securities companies to immediately stop signing new agreements and to settle all transactions related to investment cooperation activities, no later than June 30, 2024. Securities companies must report the settlement implementation roadmap to the SSC before December 30, 2024, and monthly report the results of implementation until full settlement. Mr. Do Bao Ngoc, Deputy General Director of Vietnam Construction Securities Joint Stock Company (CSI), discussed with Customs Magazine about this issue.

Latest News

Vietnam acts to combat money laundering, terrorist financing

Vietnam acts to combat money laundering, terrorist financing

Deputy Prime Minister Le Minh Khai on February 23 signed a decision promulgating the national action plan to implement the Government's commitment to prevent and combat money laundering, terrorist financing, and financing of the proliferation of weapons of mass destruction.
Banks ask central bank to extend June 30 payment deadline

Banks ask central bank to extend June 30 payment deadline

Industry experts said the current challenging economic situation and difficulties faced by businesses severely affect their ability to meet debt obligations. As there are no shortcuts to resolving old bad debts, a significant number of newly classified bad debts, which should be expected on June 30 this year, will put tremendous pressure on the country’s financial sector, as well as businesses.
The State Treasury implements nine key tasks in 2024

The State Treasury implements nine key tasks in 2024

VCN - The deployment of key tasks plan in 2024 (refer to the Plan) of State Treasury was issued to focus resources on completing tasks during the year and following the proposed strategies.
SBV injects large amount of money to support capital for banks

SBV injects large amount of money to support capital for banks

The State Bank of Vietnam (SBV) on February 20 net injected more than 5 trillion VND (nearly 204 million USD) into the banking system through the open market operation (OMO) channel to support capital for commercial banks.

More News

Vietnam Stock Exchange’s revenue down nearly 44% in 2023

Vietnam Stock Exchange’s revenue down nearly 44% in 2023

The Vietnam Stock Exchange (VNX) reported revenue of over 1.92 trillion VND (78.26 million USD) in 2023, down nearly 44% compared to the previous year.
Focusing on five tasks so that the securities industry continues to develop in the face of intertwined opportunities, challenges

Focusing on five tasks so that the securities industry continues to develop in the face of intertwined opportunities, challenges

VCN - Deputy Minister of Finance Nguyen Duc Chi raised five tasks that need to be focused in 2024 so that the securities industry continues to develop in the face of intertwined opportunities and challenges.
Prioritizing the allocation of public investment capital

Prioritizing the allocation of public investment capital

VCN - Public investment in 2024 continues to set a disbursement target of at least 95% of the total of more than VND657,000 billion of assigned public investment capital. Thus the task is to focus on allocating capital quickly and reasonably right from the beginning of the year.
6,144 retail petroleum stores issue invoices after each sale

6,144 retail petroleum stores issue invoices after each sale

VCN - According to the latest statistics of the General Department of Taxation, as of February 1, 2024, the country has 6,144 retail petroleum stores issuing electronic invoices after each sale.
PM Chính instructs action for stock market upgrade

PM Chính instructs action for stock market upgrade

Efforts have been made to attract investment and promote the image of the Vietnamese stock market, with the goal of upgrading it from frontier to emerging status.
Cai Mep – Thi Vai port gets very busy right from the beginning of Tet

Cai Mep – Thi Vai port gets very busy right from the beginning of Tet

VCN - Many mother vessels made landfall at Cai Mep – Thi Vai port (Ba Ria – Vung Tau province) in the early days of Dragon Year 2024 showing positive signs about the recovery of seaport activities.
Public offerings key to promoting corporate bond market: experts

Public offerings key to promoting corporate bond market: experts

To promote the professional corporate bond market, one solution is to focus on widespread public offerings of corporate bonds rather than private placements, said experts.
New policy may have adverse impacts on bancassurance

New policy may have adverse impacts on bancassurance

A new regulation on banning commercial banks from selling insurance together with banking services will negatively affect banks’ bancassurance revenue in the future, some analysts have claimed.
Urgently revising Decree 123 to create maximum convenience for taxpayers

Urgently revising Decree 123 to create maximum convenience for taxpayers

VCN - Faced with the urgent requirement of drafting a Decree amending and supplementing Decree 123 to soon submit it to competent authorities for approval, the General Department of Taxation is actively reviewing the draft Decree amending and supplementing the Decree. 123/2020/ND-CP (Decree 123) of the Government on invoices and documents to create maximum convenience for taxpayers as well as the general development of the country's economy.
Read More

Your care

Latest Most read
Vietnam acts to combat money laundering, terrorist financing

Vietnam acts to combat money laundering, terrorist financing

Deputy Prime Minister Le Minh Khai on February 23 signed a decision promulgating the national action plan to implement the Government's commitment to prevent and combat money laundering, terrorist financing, and financing of the proliferation of weapons of mass destruction.
Banks ask central bank to extend June 30 payment deadline

Banks ask central bank to extend June 30 payment deadline

Industry experts said the current challenging economic situation and difficulties faced by businesses severely affect their ability to meet debt obligations. As there are no shortcuts to resolving old bad debts, a significant number of newly classified bad debts, which should be expected on June 30 this year, will put tremendous pressure on the country’s financial sector, as well as businesses.
Efforts to remove obstacles to upgrade the stock market

Efforts to remove obstacles to upgrade the stock market

VCN - According to the sharing of Ms. Vu Thi Chan Phuong, Chairwoman of the State Securities Commission (SSC), in addition to completing the main criteria of international rating organizations in upgrading the stock market (TTCK), the State Securities Com
The State Treasury implements nine key tasks in 2024

The State Treasury implements nine key tasks in 2024

The deployment of key tasks plan in 2024 (refer to the Plan) of State Treasury was issued to focus resources on completing tasks during the year and following the proposed strategies.
SBV injects large amount of money to support capital for banks

SBV injects large amount of money to support capital for banks

The State Bank of Vietnam (SBV) on February 20 net injected more than 5 trillion VND (nearly 204 million USD) into the banking system through the open market operation (OMO) channel to support capital for commercial banks.
Mobile Version