VOV.VN - The banking sector has pledged to meet the capital demand for production and business, especially in five prioritized sectors whilst taking over measures aimed to curb inflation and keep on tight credit.
The State Bank of Vietnam (SBV) has assigned a credit growth limit to each commercial bank in 2019, with priority given to those who met Basel II’s capital safety and risk management standards ahead of schedule.
Vietnam’s credit growth in the first two months of this year expanded by just 0.77 per cent against the end of 2018, the lowest level in the past few years, reports from the Ministry of Planning and Investment (MPI) showed.
Economists have given bright outlook to Vietnamese economy, with the State Bank of Vietnam (SBV)’s credit growth target of 14 percent achievable.
VOV.VN - The banking sector is sending positive signals right from the get-go in 2019 as business outcomes of some commercial banks highlight noticeable growth in earnings.
Credit growth in the next three to five years is forecast to be around 14% per year, lower than the average rate of 18.1% in the 2015-17 period.
More commercial banks expect their credit growth limits to be expanded this year after Techcombank became the first to get the nod to do so from the State Bank of Vietnam (SBV) recently.
Interest rates for VND loans have increased in the past two months after holding steady in the first half of the year.
Authorities need to closely control the rapid increase in Vietnam’s credit-to-GDP gap so as not to cause high inflation as in the past, experts have warned.
According to the General Statistics Office, as of September 20, the banking sector’s credit growth was 9.52%, much lower than the 11.02% rate recorded a year earlier.
Credit growth in the first eight months of this year rose by 8.18% over the end of last year, the lowest level since 2015, a report from the Ministry of Planning and Investment showed.
Credit growth had stood at about 8.18% as of August 15, 2018 and is expected to be curbed at around 17% this year, said Minister-Chairman of the Government Office Mai Tien Dung.
Many commercial banks have recently increased deposit interest rates, but experts forecast that the rise will last only a short time and won’t have a domino effect on lending rates.
The profitability of Vietnamese banks is strengthening as robust economic growth fuels credit demand and supports an improvement in asset quality, but challenges are also apparent, Moody’s Investors Service said in a recent report.
The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) aims for increases of 15 percent in both mobilised capital and credit in 2018.
Moody’s Investors Service said that Vietnam’s real GDP growth will remain robust, averaging 6.7% in 2018, in its annual credit analysis released on April 3.
The profits of many domestic banks in the first quarter of this year are estimated to rise higher than that of the same period last year thanks to significant credit growth.
The State Bank of Vietnam (SBV) has asked credit institutions to limit their lending to the real estate and construction sectors to better control bad debts.
The National Financial Supervisory Commission (NFSC) forecast Vietnam’s credit to grow 17- 18% in 2018, similar to the growth last year.
Credit is forecast to accelerate from the end of the first quarter this year to maintain the same growth rate as 2017.