Forecasting the highlights of the banking industry in the last months of 2023
According to KBSV, good credit recovery will impulse the net interest income. In addition, NIM and non-performing loan ( NPL ) control of the banking industry are expected to become more positive in the year-end period.
Credit growth remains sluggish
HCMC – Outstanding loans in Vietnam had surpassed VND12.3 quadrillion in the year to mid-June, a 3.36% increase compared to December 2022 and a 8.94% rise against the same period last year. These figures were disclosed during a press conference held on June 21 by the State Bank of Vietnam (SBV),
Credit growth sparks concerns
The State Audit Office of Vietnam has issued a warning that credit growth in high-risk areas exceeded overall growth in 2022, and the credit-to-GDP ratio now poses potential risks. What do these facts signify and why is it concerning? Credit in high-risk areas In the 2022 report recently submitted
HCMC’s Jan-May credit growth lower than nation’s average
HCMC – HCMC saw January-May credit expanding a slight 2.43% compared to late last year, below the nation’s average of 3.17%, according to the HCMC branch of the State Bank of Vietnam. After experiencing a significant improvement of 1.37% in March, credit expansion lost momentum in the subsequent
There is ample room for lending – SBV HCMC
HCMC – There is still much room for lending as credit growth has so far this year remained modest while the full-year loan expansion target is 14-15%, said an official of the State Bank of Vietnam’s HCMC branch. Recently, there have emerged rumors that banks were about to reach their credit growth
Credit growth and rate cuts
Since early this year, many banks have made deep deposit rate cuts, with the rate for tenures shorter than six months reduced by 0.5 percentage point and that for longer tenures slashed by 1.5 to 2.0 points. The lending rate, however, remains high as its reduction has been narrower than that of
Caution about credit growth targets
The fact that credit growth has been sluggish in the year to date means that it is not yet necessary for banks to allocate high targets in the beginning of the year. In addition, the potential risks to the economy, especially for inflation, give banks more reasons to retain their control over
The credit growth puzzle
The fact that banks have refrained from lending does not result from their concerns over the credit growth cap since it has already been revised up without any abrupt surge in new loans. There are other factors influencing how banks lend. The 2022 target As of December 21, credit growth in the
Central bank caps 2023 credit growth at 15%
HCMC – The State Bank of Vietnam (SBV) will cap credit growth at 14-15% this year to maintain macroeconomic stability and boost economic growth. Monetary policy is subject to change depending on specific market conditions, according to a recent directive of the SBV, the country’s central bank. The
Cash-strapped lenders
The State Bank of Vietnam (SBV) on December 5 loosened its grip on credit limits, raising the credit cap by 1.5-2.0 percentage points on top of the 14% credit growth quota for this year. That means commercial banks can provide an additional VND240 trillion to borrowers, but a question arises over
Central bank revises up credit growth limit
HCMC – The State Bank of Vietnam (SBV) decided last night (December 5) to increase the credit growth limit for this year by 1.5 to 2.0 percentage points, reversing its persistent stance on loan growth. With inflationary pressure on its mind, the SBV, the country’s central bank, earlier affirmed
PM hints at credit growth target expansion
HCMC – Prime Minister Pham Minh Chinh has hinted at expanding the credit growth target to maintain macroeconomic stability. The information was given during a meeting with voters of PM Chinh and the National Assembly deputies delegation of Can Tho City in the Mekong Delta on November 17. PM Chinh