Credit growth reaches 15.3 percent in 11-month period

Hanoi (VNA) - The credit growth in November rose 2.8 percent against the previous month, pushing the total rise in the 11 months of this year to 15.3 percent.

According to the National Financial Supervisory Commission, the government’s financial watchdog, the ratio of medium and long-term loans in the 11 months increased by 12.7 percent against December last year and accounted for 53.8 percent of the total outstanding loans.

The rising rate of short-term loans was 18.6 percent, compared to 15.2 percent in the 11 months of last year.

The commission also noted that lending in foreign currency expanded 12.3 percent from the end of 2016, more than doubling the expansion of 5.8 percent in the same period last year.

Meanwhile, loans in the Vietnamese dong increased 15.6 percent in the 11-month period, lower than a 16.6 percent increase in the same period last year, and accounted for 91.8 percent of total credit.

The commission said that lending for the agricultural sector represented 8.1 percent of total credit, while that for real estate and construction made up 15.5 percent, down from 17.1 percent in 2016, of which 5.8 percent of the loans were funneled into the real estate industry.

Notably, consumer lending continued at a rapid pace, with growth hitting 59 percent in the 11-month period, driven mainly by home loans.

The commission said the mobilisation growth slowed to 13.5 percent between January and November, compared to 16.6 percent, a year earlier.

Liquidity in the banking system remained stable, buoyed by the State Bank of Vietnam net injecting 124 trillion VND (5.46 billion USD) since the start of the year via foreign currency purchases and open market operations.

The average loan-to-deposit ratio (LDR) of the banking system stood at 86.9 percent, up from 85.6 percent at the end of 2016.

Interest rates increased by 70-80 basis points in the inter-bank market, while major banks revised up deposit rates, the commission said.-VNA