Credit growth reaches 7.42pct as of October 7

14-Oct-2021 Intellasia | NDH | 5:53 AM Print This Post

At the press conference to announce the results of banking activities in the third quarter (Q3), the State Bank of Vietnam (SBV) announced that the credit growth rate as of October 7th was 7.42 percent compared to the beginning of the year, three percent higher than the same period of 2020 and equivalent to the growth rate by the end of August. Thus, the outstanding loans of the whole economy levelled off in September and early October.

The SBV continued to carry out credit solutions to control the credit scale in line with the oriented target and to improve credit quality and control inflation, creating favourable conditions for accessing credit.

According to reports of credit institutions (CIs), by the end of September, CIs offered new loans at lower interest rates than before the epidemic with an accumulated number of over 5,200 trillion dong for 800,000 customers from January 23rd 2020. CIs also reduced and exempted interests for about 1.7 million customers affected by the epidemic with an outstanding credit of nearly 2,500 trillion dong.

From January 23rd 2020 to the end of September, the total amount of interests that CIs exempted and reduced for customers reached about 27 trillion dong. For 16 commercial banks which account for 75 percent of the total outstanding loans of the economy, the amount of interests cut as committed with the Banking Association from July 15th to the end of September was 11.813 trillion dong, accounting for 57.31 percent of the commitment.

The State agencies also continued to operate the monetary policy proactively, flexibly, and cautiously, closely coordinating with fiscal policy and other policies to control inflation according to target, maintain stability in capital and foreign exchange markets, support the macroeconomic stability and contribute to the economic recovery.

The SBV’s monetary policy is still operated in the main direction of supporting the economic recovery in the context when the epidemic is still complicated, realising the government’s dual goal of righting the epidemic while ensuring the economic development, As of October 7th, the total M2 means of payment increased by 5.65 percent compared to the end of 2020 and by 11.56 percent over the same period of 2020.

Regarding interest rate management, from the beginning of the year, the SBV has issued many documents to drastically direct CIs to actively balance their financial capacity to apply reasonable lending interest rates, reduce operating costs to concentrate resources to lower interest rates for existing loans and new loans, contributing to supporting and accompanying businesses to overcome difficulties. The level of savings and lending interest rates by the end of August continued to decrease compared to December 2020.

 

Category: Finance, Vietnam

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