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ECONOMYBANKING & FINANCE

Credit growth estimated to reach 18.71 percent in 2016

Updated at Thursday, 05 Jan 2017, 13:31
The Hanoitimes - As of December 29 last year, credit growth was estimated at 18.71 percent. Total payment instruments and capital mobisation rose by 17.88 percent and 18.38 percent respectively, significantly contributing to curbing inflation at 4.74 percent.
These informations were heard at a press conference in Hanoi on January 4.
According to The State Bank of Vietnam (SBV), in 2016, the inspection of banking activities was strengthened and reformed, thus actively supporting the implementation of the monetary policy, restructuring and bad debt settlement.
Credit organisations recorded positive changes such as the increase in capital mobilisation, assets and improved financial capacity, weak banks were strictly controlled and reshuffled.

 
SBV Deputy Governor Nguyen Thi Hong speaks at the press conference.
SBV Deputy Governor Nguyen Thi Hong speaks at the press conference.
SBV Deputy Governor Nguyen Thi Hong said the interest rates were remained stable in 2016. Some credit institutions decreased lending interest rates to support business production.
The State bank also instructed credit organisations to implement solutions to balance capitals, stablise deposit interest rates, reduce costs and improve operational efficiency, the Deputy Governor said.
She added that the current lending interest rates stand at around 6-9 percent per year for short terms and 9-11 percent for middle and long terms.
As of December 29, 2016, credit growth reached 18.71 percent. Total payment instruments and capital mobisation increased by 17.88 percent and 18.38 percent respectively, significantly contributing to curbing inflation at 4.74 percent.

 
Photo for illustration.
Photo for illustration.
As of November 30, 2016, bad debts were estimated at 2.46 percent. The Vietnam Assess Management Company (VAMC) acquired 839 debts with a total original balance of over 23.2 trillion VND (1.1 billion USD) and a combined purchasing price of 22.4 trillion VND (1.06 billion USD).
Deputy Chief Inspector of the SBV’s Inspection and Supervision Agency Nguyen Van Hung said his agency set a target of thoroughly addressing banks with poor performance in 2017, including three banks bought by the SBV at zero namely Viet Nam Construction Bank (VNCB), OceanBank and GPBank as well as DongABank and Sacombank.
Deputy Governor Hong said that the SBV will keep a close watch on the developments of the domestic and global economies to set out measures to ensure stable exchange rate management in 2017.
In 2017, the banking sector targets a credit growth of 18 percent and total payment instruments of 16-18 percent, according to the deputy governor.
She added that the exchange rate and foreign exchange market in 2016 were quite stable despite pressure from unpredictable fluctuations in the global market.
Since early last year, the SBV announced the flexible daily reference exchange rate following the developments of the domestic and overseas markets and monetary policy targets, which helped limit shocks from outside, reduce the storing of foreign currencies and support the stabilisation of the exchange rate and foreign exchange market, Hong noted.

 
Translated by Thu Minh
Source: Nguyen Anh-Kinhtedothi.vn
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