Deposits at banks reached a record high of more than 6.44 quadrillion VND as of the end of September, representing a rise of 9.95% against the end of 2022. (Photo: VNA)
Taking lessons from problems in credit growth management in 2022, thecentral bank must urgently review the credit supply of credit institutions for theeconomy and each sector and take measures to manage credit growth for 2023 in atimely, effective and feasible manner.
A report must be submitted to the Prime Minister before December.
Achieving the credit growth target will be a challenge in thecontext of the low capital absorption rate of businesses and the entireeconomy.
The central bank’s statistics showed that as of the end ofOctober, the total outstanding loan was estimated at 12.8 quadrillion VND, or agrowth rate of 7.39%, while the credit growth rate target was set at around14-15% for the full year.
“At the moment, money flow is still poured into banks becausedeposits seem to be the safest channel for cash holders,” economic expert NguyenTri Hieu said.
Despite low deposit rates at below 6% per year for new sums, deposits at banksreached a record high of more than 6.44 quadrillion VND as of the end ofSeptember, representing a rise of 9.95% against the end of 2022, increasing for13 months straight.
Meanwhile, banks were struggling with providing lending for production andbusiness.
According to Director of the Credit Department under the State Bank of Vietnam,due to impacts of economic slowdown, enterprises’ risk level is higher, makingit difficult for credit institutions to increase lending because the creditstandard could not be lowered to ensure system safety and prevent bad debt fromincreasing again.
Many forecasts were that credit growth would reach only 12% this year aslending to the real estate sector, which accounted for 70% of total bankingsector lending, was struggling. Besides, production and business were indifficulty, leading to low borrowing demand.
SBV Governor Nguyen Thi Hong said that it is necessary to raise measures topromote domestic demand and expand exports.
Previously, the Government asked the central bank to allocatecredit growth quotas in July 2023 to serve as foundation for creditinstitutions to proactively expand credit growth this year. The focus was oncredit for the real estate sector, production and business.
Many banks have recently offered lending packages withpreferential rates.
For example, VIB, VPBank, Sacombank, Vietinbank, ACB and SeABank announcedcredit packages with lending interest rates from around 5% per year for loansto production and business, and housing purchases./.
VNA
