Commercial bank deposits also went up by 2.20 percent; however it is 2.43 percent lower compared to the same period last year. Vietnam’s credit growth was 2.23 percent in first quarter while it was 2.81 percent in last year’s first quarter. GSO’s report said that deposit interest rates were also stable, at 6.5 - 7.3 per cent for deposits in Vietnamese đong over a 12-month term. Lending interest rates for prioritized sectors stood at 6 - 6.5 per cent over 12-month term while it was 6.7 - 9 percent in short -term loans and 9.3 - 11 percent in long-term loans for other sectors. For businesses with transparency in finance report, lending interest rate was 4 - 5 percent over 12 months as short-term loans. The office of State bank of Vietnam in the HCMC said that credit growth of institutions in the city in the year’s first quarter was estimated 3 percent higher than the growth in the end of 2017 and much higher than the country’s general growth. The … [Read more...] about Vietnam’s first quarter credit growth at 2.23 percent: GSO
Credit growth
Credit growth expected at 18 percent in 2018
The National Financial Supervisory Commission (NFSC) forecast Vietnam’s credit to grow 17- 18 percent in 2018, similar to the growth last year. The National Financial Supervisory Commission (NFSC) forecast Vietnam’s credit to grow 17- 18 percent in 2018 The commission said credit growth slowed down in January due to seasonal factors such as Tet holiday being around the corner. Deposit growth slid in the first month of 2018; however, it picked up from February.Credit is predicted to accelerate from the end of the first quarter.Credit tends to increase in short-term credits, shifting focus on consumer credit. In the first quarter, consumer credit continued its momentum from 2017 and increased in January due to high demand ahead of Tet holiday.Credit institutions have aimed for 17.71 percent in the credit growth of Vietnamese Dong and 7.39 percent of foreign currencies. … [Read more...] about Credit growth expected at 18 percent in 2018
Credit growth to speed up in first quarter
This was revealed in an economic and financial report by the National Financial Supervisory Commission (NFSC), published on its website earlier this week.The NFSC predicts the credit growth for 2018 at 17-18 per cent, similar to that in 2017.According to the commission, credit growth in January slowed down due to seasonal factors, such as Tết (Vietnamese Lunar New Year) holidays being around the corner. Deposit growth also slowed down in the first month of 2018 but is likely to pick up from February.Credit institutions have set a growth target of credit in Vietnamese đồng at 17.71 per cent and in foreign currencies at 7.39 per cent.Last year’s credit growth in the whole banking system was reported at 18.17 per cent.The report said the credit structure would tend to post increases in short-term credits with a focus on consumer credit, adding that consumer credit continued its momentum from 2017 and saw increases in January due to high … [Read more...] about Credit growth to speed up in first quarter
Credit growth harnessed at 15%-17%: governor
Credit growth harnessed at 15%-17%: governorBy Tu Giang - The Saigon Times DailyHANOI – The credit growth in 2012 will be around 15%-17%, a little higher than the actual figure this year but far lower than the average rate in the past few years, the central bank’s Governor Nguyen Van Binh stressed on Saturday.Speaking at the banking conference to set out targets for next year, Binh said the credit growth for 2012 was planned in a way to ensure macroeconomic stability and to fight inflation.This year’s credit growth is estimated at 12%-12.5%, and the level for next year should be 15%-17%, he said. The governor said this would be the lower target in as many years, since the average credit growth rate was 29.4% in the past ten years and 33.5% in the past five years.The governor urged banks to continue austerity measures to help achieve stability.Binh said the credit growth target would not be the same for all banks, but those institutions with better performance will be … [Read more...] about Credit growth harnessed at 15%-17%: governor
2018 predictions: Credit growth, monetary stability, interest drop
(VEN) - Credit growth of 19 percent, foreign exchange reserves at an all-time high of more than US$50 billion and commercial bank profits of over 40 percent were the Vietnamese financial market’s bright spots in 2017. Experts’ predictions signal that growth will continue in 2018. Diversified capital supplies Nguyen Thi Hong, deputy governor of the State Bank of Vietnam (SBV), said at a conference in Hanoi on December 27 to review the government’s price management and inflation control in 2017 and orientations for 2018, that credit growth expanded by around 19 percent with a focus on priority areas. The SBV also raised its foreign exchange reserves to a record US$51.5 billion. Liquidity of credit institutions remained stable in 2017, while capital mobilization grew an estimated 16.9 percent. In addition, interbank lending interest rates slipped to a record low. The 2017 Financial Market Review published by the National Financial Supervisory Commission (NFSC) at the … [Read more...] about 2018 predictions: Credit growth, monetary stability, interest drop
Vietnam should be cautious about credit growth: Moody’s
Furtheer easing of monetary policy could pose risks to Vietnam's economy and banking sector, according to Moody’s Investors Service. “Given the government’s focus appears to be towards supporting headline growth, the State Bank of Vietnam may continue to pursue a neutral to accommodative policy stance,” Bloomberg quoted Anushka Shah, an analyst for the credit ratings agency in Singapore, as saying. “However, easier monetary policy risks undermining macroeconomic stability, particularly amid already rapid credit growth,” Shah said. “A continued acceleration in credit growth could also pose some risks to the banking sector by eroding banks’ capital buffers.” Deputy Governor Nguyen Thi Hong said the central bank will “manage credit growth in a flexible and cautious manner in order to help companies and boost economic growth, while still being able to limit risks in some business areas.” Vietnam’s economy grew by … [Read more...] about Vietnam should be cautious about credit growth: Moody’s
Central bank targets 17 percent credit growth
The State Bank of Vietnam (SBV) has set its sights on 17 percent credit growth this year, slightly down from 18.17 percent last year. “It will be a tough year with many challenges,” SBV deputy governor Nguyen Thi Hong told the media in HCM City on January 25. “Every move in international markets would directly impact the country. The SBV will strongly focus on the stability of the economy, continue resolving businesses’ problems, control inflation, and issue guidelines for amendments to the Law of Credit Institutions,” she said. It would follow a pro-active and flexible monetary policy and cut interest rates, besides stabilizing the foreign exchange and gold markets, and the monetary policy in 2018 would work in close conjunction with fiscal and other policies to control inflation and support reasonable economic growth, she promised. In 2017, credit growth focused on serving production (increase of 12-13 percent for agriculture and rural development), … [Read more...] about Central bank targets 17 percent credit growth
Central Bank targets 17 per cent credit growth
The State Bank of Viet Nam (SBV) has set its sights on 17 per cent credit growth this year, slightly down from 18.17 per cent last year.“[It] will be a tough year with many challenges,” SBV deputy governor Nguyen Thi Hong told the media in HCM City on Thursday. “Every move in international markets would directly impact the country.“The SBV will strongly focus on the stability of the economy, continue resolving businesses’ problems, control inflation, and issue guidelines for amendments to the Law of Credit Institutions.”It would follow a pro-active and flexible monetary policy and cut interest rates, besides stabilizing the foreign exchange and gold markets, and the monetary policy in 2018 would work in close conjunction with fiscal and other policies to control inflation and support reasonable economic growth, she promised.In 2017, credit growth focused on serving production (increase of 12-13 per cent for agriculture and rural development), … [Read more...] about Central Bank targets 17 per cent credit growth
Vietnam’s Credit growth set at 17% in 2018
The Hanoitimes - In 2017, the State Bank of Vietnam (SBV) has implemented the monetary policy flexibly as part of the effort taking the GDP growth rate to a 10 year high of 6.81%. In 2018, the loan growth is expected to be maintained at 17%. This target is set by the Vice Governor of SBV Nguyen Thi Hong at the meeting evaluating the performance of implemented monetary policy and banking sector in 2017, and targets for 2018. In 2017, the SBV has flexibly implemented monetary policies to stabilize the financial market, with an aim to control inflation rate and creating conditions for credit institutions to reduce interest rate. As such, with more money is pumped into the national economy, the GDP’s growth rate has reached a 10 year high of 6.81%. SBV set target for credit growth at 17% in 2018. The SBV’s leaders also focused on solutions to reduce interest rate, as an effort to support enterprises and economic growth. Under the pressure of raising … [Read more...] about Vietnam’s Credit growth set at 17% in 2018
Credit growth estimated to reach 19.3 percent in 2017
The National Financial Supervisory Commission (NFSC) estimates that credit growth in 2017 will be at 18.7-19.3 per cent in its annual financial market review.According to NFSC, long-term credit growth has been slowing down, following a period of continuous expansion during 2013-2016. Mid- and long-term credit currently accounts for 53.7 per cent of total credit, compared to the 55.1 per cent reported in 2016.Credit inflows to the industrial, trade, and other services sectors now account for 78.4 per cent of the total credit, up 21.8 per cent compared to last year. Credit into agriculture rose by 18.7 per cent on-year, taking up 8.11 per cent of the total credit.Credit streaming into real estate and construction activities, on the other hand, has been reportedly on the wane this year, producing an increase of 12.2 per cent compared to the same period last year, with credit growth accounting for 15.8 per cent of 2017’s total credit (growth was reported at 17.1 per cent in 2016). Of … [Read more...] about Credit growth estimated to reach 19.3 percent in 2017