Total outstanding loans as of the end of the third quarter is estimated to have reach growth of 8.53%, higher than the same period last year.

According to the General Statistics Office (GSO), credit growth of the economy as of September 27 reached 8.53%, while in the same period last year it was only about 6.24%. It is estimated that the banking system has pumped nearly VND 1.16 million billion dong into the economy since the beginning of the year.

Previously, according to the State Bank, as of August 26, the credit growth rate reached about 6.63%. Thus, within the past month, outstanding loans increased by 1.9%, equivalent to nearly VND 260,000 billion pumped into the economy.

In the context of outstanding loans increasing faster than the same period, deposit mobilization of credit institutions increased at a lower rate. As of September 27, capital mobilization from individuals and organizations increased by only nearly 4.8% (same period last year was more than 6.6%).

In that context, banks tend to increase the issuance of bonds with higher interest rates than savings deposits. If the issued valuable papers are included, the total means of payment of the economy increased by 5.1%, approximately equal to the 5.4% of the same period last year.

Credit growth figures improved compared to the same period in 2023, but according to bank leaders, business borrowing demand is still low. Many businesses are reducing production scale, being cautious in the use of loans.

The real estate sector, which contributes greatly to annual credit growth, is still facing difficulties. Real estate companies and projects face many challenges as legal frameworks are not yet complete and financial capacity is seriously reduced. The income of real estate buyers is decreasing, while the supply of housing at reasonable prices has not met the demand.

Earlier this year, according to the State Bank, the credit growth of banks was uneven, with several units experiencing low growth, even negative growth, while other credit institutions increased credit growth close to their assigned targets. The management agency at the end of August granted additional credit growth limits to banks to reach 80% of the credit targets assigned at the beginning of the year.

This year, the credit growth target is from 14-15%. Based on actual situation, the regulator sets credit growth targets and proactively adjusts limits for each bank, without requiring them to submit additional requests. This is a difference in the State Bank's credit management compared to previous years, which is usually divided into many phases and requires banks to submit requests.

Kylie Nguyen