Although the central bank has placed a 15 per cent lending interest rate cap for enterprises in the four preferential sectors, this does not mean they can get loans, according to Tran Xuan Gia, general director of the Asia Commercial Bank (ACB).
Eligible enterprises that wanted to borrow cheap capital must show they had specific business strategies and assets for collateral, as well as repayment ability.
Banks were also enterprises, so they needed to ensure security for maintenance as well, Gia
After the central bank cut the deposit interest rate to 12 per cent per year, many banks also slashed their lending interest rates to 14 and 15 per cent per annum.
However, lending activities become volatile since the banks can not find many qualified customers, according to Gia