Illustrative image (Source: VNA)
Hanoi (VNA) - The State Bank of Vietnam (SBV) has set a credit growth target of18 percent for this year and it pledged to continue measures to keep creditgrowth suitable to the country’s economic development.
At a recent conference to review the performance of the banking industry in2016 and targets for 2017, SBV Deputy Governor Nguyen Thi Hong said that creditgrowth controlling measures are aimed to ensure the safety and efficiency ofthe banking sector and the economy.
“They will also be used to ensure that loans go to the business and productionsectors prioritised by the Government and prevent over-lending in riskysectors,” she said.
The central bank will continue implementing an active and flexible monetarypolicy this year--in close coordination with fiscal and other macropolicies--to stabilise the interest rate level, just as it successfully didlast year, and reduce lending interest rates if possible, Hong added.
In 2016, short-term lending interest rates now hover around 6-9 percent peryear while medium and long-term rates stand at 9-11 per cent. Particularly, bythe end of September last year, some institutions reduced their deposit ratesby 0.3-0.5 percentage points and cut their lending rates by 0.5-1 percentagepoints.
Nguyen Duc Long, deputy director of the SBV’s Monetary Policy Department, saidcredit of the whole 2016 grew by 18.71 percent compared to the end of theprevious year.
The rate fell within the range of credit growth rate of between 18 percent and20 percent targeted for 2016.
Credit management has succeeded in curbing the rise of lending to the realestate sector and shifting the capital flow to production industries, Longsaid.
He added that loans in Vietnam dong increasedstrongly while lending in US dollar remained low, proving the efficiency of theGovernment’s anti-dollarisation policy.
Meanwhile, Vietnamese credit institutions expect credit growth to reach 19.12percent this year, of which lending in dong willrise by 20.2 percent, according to an SBV’s survey on business performanceprospects of credit institutions for 2017.
The survey was conducted in the last two months of 2016 by the SBV’s Statisticsand Forecasting Department, which questioned all credit institutions and SBVbranches nationwide. The rate of response was 89 percent.
The interviewees forecast a 16.76 percent surge in capital mobilised for thewhole year with deposits in dong growingby 18.12 percent.
The forecast is based on credit insitutions’ optimistic about stable macro-economicenvironment, higher GDP growth and inflation being kept at safe level whichwill facilitate the liquidity of the banking system.
Thanks to an improved business climate, 63 and 85 percent of the surveyedinstitutions expect their business performance in the first quarter of thisyear and in the whole year to be better than last year, respectively.-VNA
At a recent conference to review the performance of the banking industry in2016 and targets for 2017, SBV Deputy Governor Nguyen Thi Hong said that creditgrowth controlling measures are aimed to ensure the safety and efficiency ofthe banking sector and the economy.
“They will also be used to ensure that loans go to the business and productionsectors prioritised by the Government and prevent over-lending in riskysectors,” she said.
The central bank will continue implementing an active and flexible monetarypolicy this year--in close coordination with fiscal and other macropolicies--to stabilise the interest rate level, just as it successfully didlast year, and reduce lending interest rates if possible, Hong added.
In 2016, short-term lending interest rates now hover around 6-9 percent peryear while medium and long-term rates stand at 9-11 per cent. Particularly, bythe end of September last year, some institutions reduced their deposit ratesby 0.3-0.5 percentage points and cut their lending rates by 0.5-1 percentagepoints.
Nguyen Duc Long, deputy director of the SBV’s Monetary Policy Department, saidcredit of the whole 2016 grew by 18.71 percent compared to the end of theprevious year.
The rate fell within the range of credit growth rate of between 18 percent and20 percent targeted for 2016.
Credit management has succeeded in curbing the rise of lending to the realestate sector and shifting the capital flow to production industries, Longsaid.
He added that loans in Vietnam dong increasedstrongly while lending in US dollar remained low, proving the efficiency of theGovernment’s anti-dollarisation policy.
Meanwhile, Vietnamese credit institutions expect credit growth to reach 19.12percent this year, of which lending in dong willrise by 20.2 percent, according to an SBV’s survey on business performanceprospects of credit institutions for 2017.
The survey was conducted in the last two months of 2016 by the SBV’s Statisticsand Forecasting Department, which questioned all credit institutions and SBVbranches nationwide. The rate of response was 89 percent.
The interviewees forecast a 16.76 percent surge in capital mobilised for thewhole year with deposits in dong growingby 18.12 percent.
The forecast is based on credit insitutions’ optimistic about stable macro-economicenvironment, higher GDP growth and inflation being kept at safe level whichwill facilitate the liquidity of the banking system.
Thanks to an improved business climate, 63 and 85 percent of the surveyedinstitutions expect their business performance in the first quarter of thisyear and in the whole year to be better than last year, respectively.-VNA
VNA
