Credit growth forecast to hit 11% by year-end
SBV Deputy Governor Dao Minh Tu speaks at the press conference. |
As of December 21, the credit growth stood at 10.14%, Tu said.
The SBV managed growth this year in accordance with the absorption level of the economy and with a focus on production - business, consumption, and prioritised sectors under the Government's guidelines. As such, it made a significant contribution to the country’s post-pandemic economic recovery.
Credit institutions have implemented several loan programmes with preferential interest rates. Due to weakened credit demand resulting from the negative impact of COVID-19, credit expanded less than in the previous years.
To date, these institutions have restructured the repayment terms for about 200,000 customers affected by the pandemic, with the value of outstanding loans moving close to VND355 trillion (US$15.35 billion). Interest rate exemptions and reductions were applied for nearly 590,000 customers, with outstanding loans exceeding VND1 quadrillion.
The total fees that banks cut or reduced for customers are projected to amount to more than VND1 trillion by the end of this year.
The SBV has so far adjusted annual interest rates three times, for a total of 1.5-2%. The lending rate as of the end of November was brought down by 1% per annum on average compared to the end of 2019.
Director of the SBV’s Payment Department Pham Tien Dung said cashless payments have surged.
By the end of October 2020, the number of payment transactions via mobile phones surpassed 918.8 million worth 9.6 quadrillion in total, increasing 123.9% in volume and 125.4% in value from the same period last year. Nearly 374 million transactions worth more than VND22.2 quadrillion were done through the Internet, up 8.3% in volume and 25.5% in value year-on-year.
The bad debt ratio, meanwhile, exceeded 2%. The number was inevitable and reflected the great efforts made by the banking sector given the COVID-19-plagued economy and customers’ weakened ability to repay debts.
At the press conference, the SBV released its plan for next year, which included continuing managing monetary policy to ensure a stable market and cutting costs to reduce lending interest rates. Credit will be extended, with lending capital focusing on prioritised sectors and production-business and tightened for risk-latent areas.
Related News
Support clearance procedures for imported gold for bidding
09:33 | 23/04/2024 Finance
Mechanisms for bolstering "bolder" and more efficient credit flow
08:24 | 31/03/2024 Import-Export
Effectively implement the State's credit capital investments to attract borrowers
11:13 | 17/03/2024 Finance
Credit and access to credit: A problem for banks and businesses
15:24 | 19/03/2024 Finance
Latest News
Vietnam seeks to remove obstacles in upgrade of securities market
13:50 | 25/04/2024 Finance
Price stability from supply increase and transparency in trading in gold market
09:42 | 25/04/2024 Finance
SBV takes more actions to stabilise foreign exchange rates
13:43 | 24/04/2024 Finance
Proposal to exclude criminal liability for tax officials when businesses provide false information to refund VAT
10:35 | 24/04/2024 Finance
More News
Corporate bond maturity in 2024 remains high: MoF
13:51 | 23/04/2024 Finance
The exchange rate will gradually cool down from the end of the second quarter of 2024, while interest rates will remain low
09:32 | 23/04/2024 Finance
Majority of credit institutions forecast profit growth in 2024
15:16 | 22/04/2024 Finance
Central bank plans to auction gold bars on April 22
18:00 | 21/04/2024 Finance
Old loans must endure higher interest rates temporarily: central bank
15:44 | 19/04/2024 Finance
State-owned enterprises flourished
14:15 | 19/04/2024 Finance
Forum discusses support for women-owned firms to join supply chains
17:41 | 18/04/2024 Finance
Ensure savings and prevent losses in disbursement of public investment
10:24 | 18/04/2024 Finance
Implementing unprecedented fiscal policies to actively support people and businesses
16:25 | 17/04/2024 Finance
Your care
Vietnam seeks to remove obstacles in upgrade of securities market
13:50 | 25/04/2024 Finance
Price stability from supply increase and transparency in trading in gold market
09:42 | 25/04/2024 Finance
SBV takes more actions to stabilise foreign exchange rates
13:43 | 24/04/2024 Finance
Proposal to exclude criminal liability for tax officials when businesses provide false information to refund VAT
10:35 | 24/04/2024 Finance
Corporate bond maturity in 2024 remains high: MoF
13:51 | 23/04/2024 Finance