HCM City banks’ credit growth on steady upward path

Wednesday, Oct 18, 2023 10:54

Credit growth at credit institutions in HCM City was fairly high in August and September compared to previous months, consolidating a rising trend. — Photo courtesy of Vietbank

Total loans outstanding at credit institutions in HCM City were worth nearly VNĐ3.36 quadrillion (US$137.7 billion) as of September 30, a 0.72 per cent increase from the previous month, according to the State Bank of Vietnam (SBV).

Nguyễn Đức Lệnh, deputy director of the central bank’s HCM City office, said credit growth was fairly high in August and September compared to previous months, consolidating a rising trend.

“This reflects the impact and effectiveness of the credit and monetary policies, along with solutions to support businesses and consumers rolled out by the Government, SBV and HCM City.”

Twenty five meetings have been organised in the city this year to link up banks with businesses, and preferential loan contracts for over VNĐ469 trillion ($19.2 million) were signed there, more than exhausting the credit packages the former had registered at the beginning of the year, he said.

Besides, banks have continued to implement the Government’s 2 per cent interest subsidy programme, restructure and roll over loans and lend to the city’s five priority sectors and projects under its investment stimulation programme.

The SBV’s low interest rate policy has not only supported enterprises to reduce costs but also encouraged them to borrow capital for production, trading and market expansion, he said.

Higher economic growth by the country and city, and a strong performance by manufacturing, tourism, services, and increasing exports have also promoted credit growth, he pointed out.

Enterprises are getting more export orders and also preparing for the Tết (Lunar New Year) holidays domestically, resulting in higher demand for credit.

To promote credit growth in the rest months of the year, the SBV said the banking industry would continue to focus on overcoming difficulties and upholding the efficacy of the meetings between banks and enterprises.

Banks would work to ensure credit growth, thus fostering economic growth, it added. — VNS

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