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Credit growth rate climbed at slowest pace this year
Banks’ credit growth rate last month rose at the slowest pace this year, edging up 0.7 percent from last month, the central bank’s figure showed.
The slow growth is in line with the State Bank of Vientam’s target to limit this year’s credit growth rate at 30 percent to battle inflation.
The rate in June rose 1.22 percent to reach 20 percent for the year, according to a report on the government’s website.
The loan credit balance in dong increased by 0.59 percent, while dollar loans were up 1.07 percent.
Many lenders told Thanh Nien they would continue to harness the credit growth rate until the end of the year.
Phuong Nam Commercial Joint Stock Bank Deputy General Director Tran Hai Anh said her bank estimated its credit growth rate would decrease by 20 percent in the remaining six months.
Similarly, Vietnam Bank for Private Enterprises, known as VP Bank, announced its loan credit balance was VND15.9 trillion (US$961 million) in February and VND14.9 trillion in June.
The figure next month is estimated to fall to VND14 trillion ($846 million).
The Hanoi Housing Joint Stock Bank (Habubank), meanwhile, said it had to reduce its credit growth rate by 5 percent to 15 percent last month.
Habubank General Director Bui Thi Mai said banks will restrict giving loans due to high deposit and lending interest rates, which leads to small profit gained from loan disbursements.
In a bid to battle accelerating inflation, the central bank raised the base interest rate by 2 percent to 14 percent per year in June, allowing both deposit and lending rates to reach 21 percent a year.
Among state-owned banks, only two lenders – the Bank for Investment and Development of Vietnam (BIDV) and the Bank for Agriculture and Rural Development (Agribank) – announced they would boost the credit growth rate late this year.
BIDV said it would offer VND20 trillion ($1.2 billion) to export-oriented state-run corporations in essential sectors like gasoline, food and drug, and key government projects, which are expected to finish by the end of this year or the first half of next year.
Agribank will also grant VND10 trillion to firms in important sectors like food, agriculture and fertilizer.
The credit growth rate of the Bank for Foreign Trade of Vietnam, known as Vietcombank, witnessed a slight increase of 1 percent this month, Chairman Nguyen Hoa Binh told Thanh Nien, without saying how much the overall year rate amounted to.
“Credit growth rate this year was capped at 30 percent but we expect the rate to be around 20-22 percent by year-end,” Binh said.
TNN
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