The State Treasury deposited more than VND238.49 trillion (US$10.5 billion) in five commercial banks by the end of last year, up 3.3 times against January.
The State Bank of Vietnam (SBV) has set its sights on 17% credit growth this year, slightly down from 18.17% last year.
Business performance of commercial banks is forecast to continue its upward trend in 2018 after making significant improvements last year, according to a State Bank of Vietnam (SBV) survey.
Due to the recovery of the credit market throughout the year 2017, plenty of banks announced positive business performance with increased profits whilst fostering asset trading, risk management, and control over non-performing loans.
Maximum credit growth this year is forecast to be just 18-19%, meaning that the banking system will not use up the increased room of 21%.
The credit growth in November rose 2.8% against the previous month, pushing the total rise in the 11 months of this year to 15.3%.
Credit growth in the 10 months through October reached 13.5%, the National Financial Supervisory Commission said in a latest report.
Credit growth of the entire banking system in the last 10 days of September rose 1.14%, pushing the total increase in the first nine months of this year to 12.16%, the latest report from the State Bank of Vietnam (SBV) showed.
The Vietnam Bank for Social Policies (VBSP) reported that the bank has provided loans to over 31.8 million poor households and policy beneficiaries since 2002.
Outstanding loans of commercial banks in HCM City in the first nine months of 2017 rose 13.5 percent against December last year to more than US$73.57 billion, the city People’s Committee report stated.
A high credit growth target of 21 per cent could be achieved this year, but with it come risks on credit quality and the potential for unevenly distributed loans, privileging large private firms instead of smaller ones.
As the Government is striving to obtain credit growth of 20% to 22% this year, many economic experts voiced their concerns over possible adverse impacts of high credit growth on businesses and the economy.
The Government has called for faster than targeted credit growth in pursuit of this year’s GDP goal of 6.7%.
According to the National Financial Supervisory Commission, many supporting factors in both the domestic and international markets could help an interest rate cut until the year-end.
The total loans of the banking system are expected to grow by 16.33% in 2017 against December last year, lower than the Government’s limit of 18%.
The Vietnam Bank for Social Policies (VBSP) aims to offer VND41 trillion (US$1.8 billion) of loans to the southwest region in 2030, up VND13 trillion (US$571 million), or 46 percent, compared to 2016, with average credit growth of 10 percent each year.
Consumer lending by end May rose 29.7 per cent against the end of 2016, the National Financial Supervisory Commission (NFSC) has said.
With credit growth accelerating in the first quarter, many commercial banks may become more demanding in selecting lending customers.
The Vietnam Export Import Commercial Joint Stock Bank (Eximbank) will sell its 165 million shares at the Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank) in a proper time.
Credit growth in the first two months of 2017 rose 1.23 per cent year-on-year, but credit institutions remain cautious over business targets while focusing on lending quality.