Banks expect credit growth from Q2 hinh anh 1Illustrative image (Photo:
Hanoi (VNA) - Banks are expecting an improvement in credit growth from the second quarter of 2024, especially now that loan interest rates have decreased, exports gradually recovered, and domestic consumption increased.

The State Bank of Vietnam said that as of January 31, deposit and loan interest rates had been cut down by 0.15% and 0.25% per year, respectively, compared to the end of 2023.

However, the central bank noted that credit growth in early 2024 was quite low compared to that in recent years. In January, credit decreased by 0.6% against the end of 2023.

Leaders of Agribank, Vietcombank, and LPBank said that this is a normal phenomenon in the first months of the year as customer psychology and economic activities are not vibrant because this is the New Year holiday season.

They forecast that credit growth may gradually improve in the remaining quarters of this year as the economy recovers.

To promote credit growth, ministries, sectors, and localities were recommended to roll out measures to stimulate domestic consumption, issue more incentives to attract foreign investment, create an open and convenient legal corridor for businesses' operations, and support them in increasing their competitiveness and participating in the global value chain./.