Credit growth of nine months reached 8.64 %

08/10/2019

According to the data released by the SBV, as of September 24, outstanding loans to the economy increased by 8.64 % compared to the end of 2018, equivalent to more than 623,000 billion was further disbursed into the economy.

On October 1, 2019, the State Bank of Vietnam (SBV) held an announcement on the operating performance of banks over the first nine months of the year. According to data from the SBV, as of September 24, the total outstanding loans to the economy increased by 8.64 % compared to the end of 2018.

With this increase, the banking industry has further disbursed more than VND 623,000 billion to the economy since the beginning of the year, equivalent to more than VND 2,300 billion per day. It is estimated that the total outstanding loans to the economy is currently at over VND 7.83 million billion. In addition, according to the data said by Deputy Governor Dao Minh Tu, growth rate in capital mobilization from the beginning of the year also reached about 9.03 %.

The credit growth figures of the SBV are higher than the previous announcement of the General Statistics Office on the credit growth of nine months which was 8.4 %. However, compared with the plan for credit growth of about 14% this year, the growth from the beginning of the year is still far from the expected figures.

This year, the State Bank of Vietnam has oriented the total means of payment to increase by 13% and credit growth to increase by about 14%. In addition, the figures may be adjusted to suit the actual situation.

As of September 24, the total means of payment (M2) increased by 8.58 % compared to the end of last year. In the foreign exchange market, since the beginning of the year, the SBV has been net buying foreign currencies to supplement the State's foreign exchange reserves.

Based on the macroeconomic situation and the domestic and international monetary market, especially in the context that many central banks continuously cutting interest rates, since September 16, the State Bank of Vietnam has adjusted down 0.25 % per annum of operating interest rates to continue supporting the economy and liquidity of the credit institution system. Basically, interest rates remain stable.

The Regulator also said it focused credit activities on production and business, priority areas under the Government's direction, and controlled credit for potentially risky areas such as securities, real estate.

In fact, since the beginning of the year, the group of four state-owned banks including Agribank, BIDV, Vietcombank, and Vietinbank have cut lending rates twice for priority areas.

Regarding the restructuring of credit institutions, the financial capacity of credit institutions has been strengthened and improved significantly, charter capital has increased over the years, the scale of the system of credit institutions has increased, and the capacity of governance and administration improved.

Huong Nguyen

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