Credit grows in line with annual target

Wednesday, Sep 18, 2013 14:45

A local bank's office. In the first eight months of the year, loans in dong increased 10 per cent while foreign currency loans declined 11.55 per cent. — Photo

HA NOI ― Total lending of all credit institutions grew 6.45 per cent in the first eight months of the year, the State Bank of Viet Nam (SBV) has reported.

Loans in dong increased 10 per cent, with interest rates falling by 3-5 per cent. Foreign currency loans fell by 11.55 per cent in line with national anti-dollarisation policies, it said.

At the end of August, loans with interest rates of up to 13 per cent accounted for nearly three quarters of all lending, up 41.6 per cent over the end of last year. Loans with interest rates of 13-15 per cent represented about 17 per cent, down 29.3 per cent.

Loans with interest rates of over 15 per cent made up just 8 per cent, a drop of 20.6 per cent from the ratio at the end of 2012.

The SBV said lending continued to concentrate on prioritised sectors that assisted production and exports of the country's major products such as rice and seafood, and helped bring in significant amounts of foreign currency.

Lending for home purchases and rentals aimed to prop up the ailing property market was stepped up, but remained limited.

By August 31, commercial banks had registered housing loans worth a combined US$5.02 million to individual customers, and disbursed about $3.3 million. For businesses, they registered loans worth $33.71 million, but only disbursed about $2.12 million.

In the first eight months, total deposits at credit institutions grew about 10.5 per cent, although deposit interest rates declined by 2-3 per cent.

Deposits in foreign currencies rose significantly by 7.23 per cent, despite official commitments about the dollar/dong exchange rate, while deposits in dong were up around 11 per cent.

According to the SBV, total money supplies in the economy increased 9.16 per cent in the first eight months in line with the annual target of 14-16 per cent money supply growth. ― VNS

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