Medium- and long-term loans accounted for 53.7% of the total lending, sliding from 55.1% at the end of 2016, while short-term loans made up the remaining 46.3%, compared to 44.9% of 10 months earlier.
Notably, lending in foreign currency picked up 11.5% in the 10-month period, higher than a rise of 4.4% in the same period last year, due to increasing import demands.
According to the report, lending for real estate has now dropped to 15.5% of total outstanding loans, from 17.1% in 2016.
|Customers and bank tellers at the Vietnam Prosperity Joint-Stock Commercial Bank’s main office in Hanoi.
Meanwhile, consumer lending soared 58.6% between January and October, in line with the upward trend of consumption in the economy, the report said.
During the 10-month period, capital mobilisation grew by an estimated 12% from 2016-end, lower than a 14.7% expansion in the same period last year.
It noted that bank liquidity remained stable at low levels in October, evidenced by inter-bank interest rates sliding 20 basis points from the previous month. Rates of overnight, one-week and one-month loans were 0.9%, 0.9% and 1.5% per year, respectively.
The system’s liquidity was supported by the Vietnamese central bank net pumping around VND130 trillion (US$5.72 billion) since the start of the year.
The Government in September revised the credit growth target for this year to 21%-22% from the initial 18% to support the economic growth.
However, at a recent meeting with Victoria Kwakwa, Vice President for the East Asia and Pacific Region at the World Bank, State Bank of Vietnam (SBV)’s Governor, Le Minh Hung, said that the SBV has come under no pressure to loosen the monetary policy to help the country achieve the economic growth target of 6.7% this year.
SBV will work towards curbing inflation at less than 4% this year, Hưng said, adding the central bank had asked credit institutions to control credit growth and ensure credit quality.
"This year, the quality of loans has been strengthened and tightly controlled in the risky industries, especially real estate. The Government and the SBV are consistent with the opinion that the economic growth must ensure the goal of macroeconomic stability," Hưng said.
He said the National Assembly (NA) had issued a resolution on the settlement of bad debts, thus paving the way for the banking sector to lower bad debt.
The central bank will ask the NA for approval of a draft law amending and supplementing the current Law on Credit Institutions to make commercial banks more transparent in line with international standards and practices.