Credit growth reaches 8.95pct as of October 4

16-Oct-2019 Intellasia | Vietnam Finance | 6:02 AM Print This Post

On October 11th 2019, in Quang Ninh, the State Bank of Vietnam (SBV) in collaboration with the People’s Committee of Quang Ninh province held a conference on connecting banks enterprises in key economic regions in the North.

According to information from the conference, the outstanding credit of the economy by the end of 2018 increased by nearly 14 percent. As of October 4th 2019, the credit of the economy reached more than 7,850 trillion dong, up by 8.95 percent compared to the end of 2018.

For the northern economic region alone, with the network of branches and transaction offices of over 80 credit institutions (CIs) and nearly 320 people’s credit funds, the capital mobilisation to meet the needs of socioeconomic development of the region has always grown at an average outstanding value of more than 1.5 times higher than the outstanding credit number.

By the end of September 2019, the outstanding credit of the region was 2,500 trillion dong, up by 8.98 percent compared to December 31st 2018 and accounting for about 33.1 percent of the total outstanding loans to the economy.

In particular, the outstanding loans to agriculture, forestry and fishery accounted for four percent; outstanding loans to industry and construction accounted for 35 percent; and outstanding loans to trade and services accounted for 61 percent.

The outstanding loans of small and medium enterprises reached 443 trillion dong, up by 12.44 percent over the end of 2018.

To improve the efficiency of specific credit programmes, remove difficulties and meet the credit needs for production and business of enterprises, in the near future, the SBV’s deputy Governor Dao Minh Tu said that the banking sector will continue to proactively and flexibly operate monetary policy in order to stabilise macro-economy, control inflation and contribute to creating a stable business environment for enterprises.

At the same time, the agency will review and make proposal to improve policies and institutions, creating favourable conditions for CIs to fully provide and diversify financial products and services, especially non-credit banking products and services, and modern products and services based on the application of digital technology to better serve the financial needs of businesses.

In addition, the agency will also complete the legal framework on credit granting of CIs to enhance the capital supply ability to meet the legitimate needs of production, business and consumption of people and businesses.

Moreover, the banking sector will continue to coordinate with ministries, industries and localities to carry out policies to support small and medium enterprises which are specified in the Law on Supporting small and medium enterprises, especially policies on providing credit guarantee for small and medium enterprises borrowing capital from CIs and small and medium enterprise development funds.

 


Category: Finance, Vietnam

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