In its latest report, NFSC said that in the first eight months of the year, credit rose by 10.2 per cent compared with the end of 2015 to reach VNĐ4.9 quadrillion (US$219.7 billion). Of the total, outstanding loans contributed 90 per cent and corporate bonds added 10 per cent.
In terms of credit structure, lending in Vietnamese đồng accounted for 91.2 per cent of the total credit, while medium and long-term credit made up 55.9 per cent. However, the growth pace of medium and long-term loans witnessed a slowdown. From January to August, loans increased by 11 per cent, 7.7 percentage points lower than the same period last year.
Loans for real estate investment and business increased by 5.4 per cent, accounting for 8.5 per cent of total credit in the first eight months of the year, while they made up 8.9 per cent for the entire previous year.
According to reports from the credit institution, the non-performing loan ratio is below three per cent. However, bad debt is distributed unevenly, concentrated in a number of credit institutions with weak financial capacity. The NFSC’s analysis said bad debt of 19 credit institutions accounted for 55.1 per cent of total NPL systems.
According to the report, the liquidity of the banking sector has been kept stable. By the end of August, the funds mobilised from economic organisations and residents reached VNĐ5.8 quadrillion, up 11.4 per cent, 3.4 percentage point higher than the same period last year.
The deposits are estimated to increase by over 12 per cent by the end of September. The loan to deposit ratio averaged 84.7 per cent, nearly equal to the figure for the whole of 2015.
In early September, a number of commercial banks in the sector continued to increase long-term deposit rates by between 0.3 and 0.5 percentage points to attract customers and achieve business targets by the end of the quarter.
Meanwhile, on September 26, some large commercial banks reduced interest rates by 0.3 to 0.5 percentage points for short-term deposits and a number of state-owned banks also reduced lending rates for priority subjects until the end of 2016.
For the foreign exchange market, the report also said in the past nine months, this market is relatively stable. However, experts from the commission still emphasised the need to keep a close watch on the exchange rate in the remaining months as the FED will likely raise interest rates once this year and many major economies around the world continue to maintain easing measures, boosting money supply./.
Source: VNS