Medium- and long-term loans accounted for 53.7 per cent of the total lending, sliding from 55.1 per cent at the end of 2016, while short-term loans made up the remaining 46.3 per cent, compared to 44.9 per cent of 10 months earlier.
Notably, lending in foreign currency picked up 11.5 per cent in the 10-month period, higher than a rise of 4.4 per cent in the same period last year, due to increasing import demands.
According to the report, lending for real estate has now dropped to 15.5 per cent of total outstanding loans, from 17.1 per cent in 2016.
Consumer loans soared 58.6 per cent between January and October, in line with the upward trend of consumption in the economy.
Meanwhile, consumer lending soared 58.6 per cent between January and October, in line with the upward trend of consumption in the economy, the report said.
During the 10-month period, capital mobilization grew by an estimated 12 per cent from 2016-end, lower than a 14.7 per cent expansion in the same period last year.
It noted that bank liquidity remained stable at low levels in October, evidenced by inter-bank interest rates sliding 20 basis points from the previous month. Rates of overnight, one-week and one-month loans were 0.9 per cent, 0.9 per cent and 1.5 per cent per year, respectively.
The system’s liquidity was supported by the Vietnamese central bank net pumping around VNĐ130 trillion (US$5.72 billion) since the start of the year.
The government in September revised the credit growth
target for this year to 21-22 per cent from the initial 17 per cent to support the economic growth.
However, at a recent meeting with Victoria Kwakwa, vice President for the East Asia and Pacific Region at the World Bank, State Bank of Vietnam (SBV)’s Governor, Le Minh Hung, said that the SBV has come under no pressure to loosen the monetary policy to help the country achieve the economic growth target of 6.7 per cent this year.
SBV will work towards curbing inflation at less than 4 percent this year, Hung said, adding the central bank had asked credit institutions to control credit growth and ensure credit quality.
"This year, the quality of loans has been strengthened and tightly controlled in the risky industries, especially real estate. The government and the SBV are consistent with the opinion that the economic growth must ensure the goal of macroeconomic stability," Hung said.
He said the National Assembly (NA) had issued a resolution on the settlement of bad debts, thus paving the way for the banking sector to lower bad debt.
The central bank will ask the NA for approval of a draft law amending and supplementing the current Law on Credit Institutions to make commercial banks more transparent in line with international standards and practices.