Credit for export and import loans may increase strongly in 2021

14-Jan-2021 Intellasia | Dau tu Chung khoan | 6:02 AM Print This Post

According to a credit trend survey conducted by the Statistical Forecast Department, the State Bank of Vietnam (SBV), due to the negative impact of the Covid-19 epidemic, the overall credit demand of customers slowed down significantly in 2020. In which the demand for borrowing capital for tourism investment and securities trading was expected to decrease compared to 2019.

However, credit growth was expected to have a growth in 2021, led by expectations for demand for commercial and service loans, especially export and import loans.

Credit institutions said that they had continued to cut marginal interest rates and non-interest fees in the last six months of 2020 and the first six months of 2021 to support and increase customers’ access to credit. However, credit ratings of customers and other terms were also of interest to credit institutions, including additional terms in credit contracts to limit risks.

Overall, credit risk was assessed by credit institutions to show signs of ‘increasing’ in 2020 compared to 2019, of which the increase in the risk of real estate loans was considered to be the highest. The risk of short-term loans was expected to be higher than that of medium and long-term loans. Credit institutions expected credit risks to decrease slightly in 2021 compared to 2020.

The survey showed that, in the context of the Covid-19 epidemic, the fields of ‘wholesale, retail’ and ‘import, export’ were chosen by many credit institutions as the driving force for credit growth more than in other sectors. Unlike the assessment of 2019, 56 percent of credit institutions choose the field of ‘construction’ as the main driving force for credit growth.

It was expected that in the first six months of the year and the whole year 2021, credit institutions would continue to focus on lending areas with strong growth potential such as wholesale and retail (55.8 percent to 57.7%), import and export (54.8 percent to 56.7%), serving the daily needs (44.2 percent to 45.2%), construction (38.5 percent to 44.2%).

In the last six months of 2020, credit institutions said that they had met the overall borrowing needs of customers at a higher level compared to the first six months of 2020, reaching the highest level since SBV surveyed the credit trends in December 2017. 99.2 percent of credit institutions said that they had met 75 percent to 100 percent of their borrowing needs.

100 percent of credit institutions belonging to the group of 15 major commercial banks said that they had met over 75 percent of customers’ needs. In addition, two factors that were considered to have the most important influence on credit institutions meeting less than 75 percent of customers’ borrowing needs in the last six months of 2020 were ‘Risk appetite’ and ‘Economic Prospects’.

Notably, in the last six months of 2020, credit institutions said they had loosened credit standards for small and medium enterprise in many priority areas and reduced credit standard tightening for other groups of customers.

It was expected that in the first six months of 2021 and the whole year 2021, credit institutions would slightly loosen credit standards for customer groups.

The basis for the credit standard loosening in the first six months of 2021 was a positive macroeconomic prospect, which was in line with the government’s and SBV’s policies and orientations to support economic growth.

 

Category: Finance, Vietnam

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