The increase in provision costs of banks in recent quarters was forecast previously as the sharp increase in bad debt of firms, especially in the real estate and export sectors.
Commercial banks have stepped up lending to export firms, especially those in industrial parks and export processing zones, as exports of many goods have grown strongly this year.
Total outstanding loans of the banking system rose 2.28 per cent as of March 25 and the total means of payment grew by 2.67 per cent compared to late 2018.
Total outstanding loans by commercial banks in HCM City in 2017 rose 18.5 per cent from 2016 to more than VND1.74 quadrillion (US$76.73 billion), according to the State Bank of Viet Nam’s HCM City branch.
Credit growth rate in the first eight months of 2017 has been estimated at 11.5 per cent compared to the end of 2016, the National Financial Supervisory Commission (NFSC) reported.
Total mobilised capital of credit institutions in HCM City in the first two months of the year was estimated at VND1,783 trillion (US$78.03 billion), an increase of 0.31 per cent over the end of 2016 and up 13.18 per cent...
Credit for State-owned enterprises (SOEs) currently accounts for roughly 15-17 per cent of total outstanding loans, deputy governor of the State Bank of Viet Nam (SBV) Nguyen Thi Hong said.