Credit growth set for 12-14 per cent

Wednesday, Dec 18, 2013 11:45

National credit growth is projected to reach 12-14 per cent next year. — Photo

HA NOI (Biz Hub) ― The banking sector set a goal of growing its lending of credit by 12-14 per cent in 2014, the State Bank of Viet Nam (SBV) has announced.

This goal is part of National Assembly targets for the domestic economy next year, particularly an economic growth rate of about 5.8 per cent and maintaining an inflation rate of 7 per cent.

It was also meant to help ensure reasonable interest and exchange rates, assure balances on the monetary market, and put in place efficient monetary policies.

Continuing to guarantee that security remains liquid for credit institutions, assuring the value of the Vietnamese dong, and easing the use of dollars and gold in the economy would be among the major tasks, said officials.

Meanwhile, central bank data revealed that total money supplies increased about 14.6 per cent this year, while overall deposits rose about 15.6 per cent. Further, deposits in dong grew nearly 16 per cent, as deposits in dollar expanded 13.7 per cent.

It would also be important to control the quality of loans, restrict bad debts and enhance transparency in the banking system, the SBV said.

The Viet Nam Asset Management Company acquired over VND28 trillion (US$1.33 billion) worth of debts from 26 lending institutions this year, and the amount is expected to rise to VND30-35 trillion ($1.43-1.67 billion) at year-end, according to Dien dan Doanh nghiep (The Business Forum).

The banking sector is seeing drastic restructuring through mergers and acquisitions, with the number of lending institutions in the domestic market having fallen by six, it reported.

Meanwhile, SBV Deputy Governor Nguyen Dong Tien urged lenders to continue to assist production and business activities, and reiterated that the central bank would work to further financial support for homebuyers in 2014.

Central bank officials said the listing of commercial banks on the stock market would be gradually carried out to suit market developments, while flexible policies would be needed to stabilise exchange rates and the gold market next year. ― VNS

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