Hanoi banks report fast credit growth

Hanoi-based commercial banks reported a sustainable credit growth rate in the first quarter of the year, giving them a nationwide lead in deposits and making the capital second only to HCM City in outstanding loans.
Hanoi reported total deposits of 183 trillion dong (US$11.6 million) in the first three-months of 2005, an increase of 20.16% on the same period by 2004.
According to the State Bank of Vietnam, the growth in the capital’s deposits—which comprised one-third of the nationwide total—is partly a result of various measures intended to augment the position of Hanoi’s banks, including promotional campaigns, interest rate hikes and general improvements in service quality.
Due to high demand for funds among companies, the capital’s banks also provided outstanding loans totalling 99 trillion dong (US$6.27 million), indicating a yearly rise of 24.6%.
Of this amount, short-term loans made up 55.7 trillion dong, while medium-and long-term loans accounted to 42.3 trillion dong. The rising demand for funds is expected to maintain strong credit growth in the forthcoming quarters.

 

Category: Finance