Credit growth

VNA/VNS Photo The gain was slower than last year when credit rose 9.52 per cent. Capital mobilised by banks was also moderate, rising by 8.68 per cent compared with 9.15 per cent during the same period last year. Interest rates remained relatively stable, with the rate of mainly medium- and long-term deposits inching up at some banks that needed capital to meet the central bank’s adequacy ratio regulations. Interest rates for one-to-six month deposits stood at 4.5-5.5 per cent per year, 5.5-6.8 per cent per year for six-to-12 month deposits, and 6.6-7.5 per cent for 13 months and upwards. Meanwhile, lending rates averaged 6 to 9 per cent per year for short-term loans and 9 to 11 per cent per year for medium- and long-term loans. In the first nine months, banks largely met credit demands in the investment, production and business sectors. Notably, banks continued focusing on manufacturing, business borrowers and prioritised … [Read more...] about Credit growth expands 8.4 per cent

Illustrative image (Source: VNA) Hanoi (VNA) – Vietnam’s credit growth has expanded by 8.4 percent from the end of 2018 so far this year, the General Statistics Office (GSO) has reported. The gain was slower than last year's figure when credit rose 9.52 percent. Capital mobilised by banks was also moderate, rising by 8.68 percent compared with 9.15 percent during the same period last year. Interest rates remained relatively stable, with the rate of mainly medium- and long-term deposits inching up at some banks that needed capital to meet the central bank’s adequacy ratio regulations. Interest rates for one-to-six month deposits stood at 4.5-5.5 percent per year, 5.5-6.8 percent per year for six-to-12 month deposits, and 6.6-7.5 percent for 13 months and upwards. Meanwhile, lending rates averaged 6 to 9 percent per year for short-term loans and 9 to 11 percent per year for medium- and long-term loans. In the first … [Read more...] about Vietnam’s credit growth expands 8.4 percent

Most of credit institutions have expected better business performance for this year (Photo: VNA) Hanoi (VNA) – Most of credit institutions have expected better business performance for the fourth quarter as well as the whole of 2019, according to a recent survey by the State Bank of Vietnam. The September survey shows that 82.3 percent of the questioned credit institutions forecast quarterly improvement in their business performance for Q4, and 87.1 percent expected the same for this year compared to 2018. Notably, 28.4 – 29.7 percent of them predicted “much improvement”, compared to 20 – 27.4 percent in the June survey. Up to 91 percent of the interviewees believed that their pre-tax profit this year will increase from 2018, 3 percent forecast unchanged figures, and 6 percent were worried about a decline. The mobilised capital across the system is expected to grow 4.39 percent in Q4 and 13.06 percent in 2019, down 0.42 percent from the previous … [Read more...] about Credit institutions expect rosy prospects for 2019

Central banks attempt to address sluggish growth (illustration photo) An interest rate cut by 25 basis points since 2017 by the State Bank of Vietnam (SBV) was recently accompanied by a message that sets a higher bar for further easing later this year. The annual refinancing rate and rediscount rate will be lowered from 6.25 to 6 per cent, and from 4.25 to 4 per cent, respectively. The annual overnight electronic interbank rate and rate of loans to offset capital shortage in clearance between the central bank and domestic banks will be also cut to 7 per cent. The interest rate of bids of valuable papers through open market operations will be reduced from 4.75 per cent to 4.5 per cent annually. The cut is made in the context of a stable domestic macro-economy, the SBV wrote in a statement, emphasising that “Inflation in Vietnam remains under control, while monetary and foreign exchange markets are also stable.” At a press conference held last week, SBV Deputy Governor Dao … [Read more...] about Central banks attempt to address sluggish growth

Bad Request - Invalid URL HTTP Error 400. The request URL is invalid. … [Read more...] about Credit growth expected to reach 13.61% in 2019