Banking sector sees 6.53 percent in credit growth hinh anh 1Deputy Governor of the State Bank of Vietnam Nguyen Thi Hong at the event (Photo: VNA)
Hanoi (VNA) – Vietnam’s total loans by May 25 grew 6.53 percent from the end of 2016, which supported domestic production and business in the context of slow public investment disbursement since the beginning of the year.

Deputy Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong made the remark on June 5.

The monetary market remained positive in the first six months of the year and interest rates have been stabilised thanks to the SBV’s regulation, Hong said.

Credits were continuously prioritized for production and business development while those for real estate slowed down, she said.

The SBV Governor guided financial institutions to control credit risks and ensure capital balance and the banking system’s safety.

As for foreign exchange, the central bank has kept a close eye on fluctuations of the domestic and foreign markets and launched rational daily reference exchange rates. The official exchange rates between the Vietnamese Dong and the US Dollar has surge 1 percent from the outset of this year, Hong said.

The SBV has joined hands with relevant ministries and branches to finalise a draft on bad debt settlement among credit institutions, the highlight of which is the establishment of a bad debt market. Accordingly, the Vietnam Asset Management Company (VAMC) is allowed to buy bad debts from banks, recover the debts through issuance of special bonds as well as sell debts to relevant individuals and organisations.- VNA