Credit activities have developed strongly in the first months of 2015, apositive sign for the economy's recovery, independent market observershave said.
The economy's credit growth as of February 24 rose by0.96 percent compared with the figure recorded late last year, accordinga source from the Ministry of Planning and Investment.
Meanwhile, another source said the credit grew by 1 percent by February.
Analystssaid these were surprising changes because the country showed negativecredit growth in the first few months of previous years. For instance,credit growth decreased by 1.67 percent in February last year.
Senior economic expert Dr. Vo Tri Thanh explained that many enterprises had been expecting economic recovery.
Aleader of the Vietnam International Bank (VIB) told Dau Tu newspaperthat many sources had predicted that economic performance would improvethis year, so the bank expected good credit growth.
Both lending and deposit rates are at stable and low levels, which has also helped credit growth.
Meanwhile,the Governor of the State Bank of Vietnam has asked the banking sectorto seek ways to further cut the interest rate on long and medium-termloans by 1 or 1.5 percent.
The central bank's new policy ofallowing lenders to use up to 60 percent of short-term deposits forlong- and medium-term loans has also contributed to credit growth.
Decreased oil prices, low interest rates and economic recovery are other reasons behind the current growth.
Although the growth is a good sign, analysts warned lenders of the risks of rapid credit growth.
Oneof the banks' biggest risks is bad debt. Some banks may try to increasecredit growth to hide their bad debts, analysts have said.
Becauseof this, analysts said credit should not be extended too quickly, andthat lenders should focus their resources on developing theirservices.-VNA
The economy's credit growth as of February 24 rose by0.96 percent compared with the figure recorded late last year, accordinga source from the Ministry of Planning and Investment.
Meanwhile, another source said the credit grew by 1 percent by February.
Analystssaid these were surprising changes because the country showed negativecredit growth in the first few months of previous years. For instance,credit growth decreased by 1.67 percent in February last year.
Senior economic expert Dr. Vo Tri Thanh explained that many enterprises had been expecting economic recovery.
Aleader of the Vietnam International Bank (VIB) told Dau Tu newspaperthat many sources had predicted that economic performance would improvethis year, so the bank expected good credit growth.
Both lending and deposit rates are at stable and low levels, which has also helped credit growth.
Meanwhile,the Governor of the State Bank of Vietnam has asked the banking sectorto seek ways to further cut the interest rate on long and medium-termloans by 1 or 1.5 percent.
The central bank's new policy ofallowing lenders to use up to 60 percent of short-term deposits forlong- and medium-term loans has also contributed to credit growth.
Decreased oil prices, low interest rates and economic recovery are other reasons behind the current growth.
Although the growth is a good sign, analysts warned lenders of the risks of rapid credit growth.
Oneof the banks' biggest risks is bad debt. Some banks may try to increasecredit growth to hide their bad debts, analysts have said.
Becauseof this, analysts said credit should not be extended too quickly, andthat lenders should focus their resources on developing theirservices.-VNA
