14:39 | 28/02/2019 Finance - Banking
(VEN) - Based on the positive economic growth indicators and good credit quality in 2018, Vietnam’s credit institutions are hopeful of even better results in 2019.
According to the business sentiment survey conducted by the Monetary Forecasting and Statistics Department under the State Bank of Vietnam (SBV), credit institutions expect a credit growth rate at 15.27 percent by the end of this year, with even faster growth in Vietnamese dong credit.
According to the survey, which covered domestic and foreign commercial banks operating in the country, 88 percent of respondents said they hoped banking operations would continue to improve, with 35 percent anticipating significant improvement. A majority of the institutions also believe the banking system’s liquidity in both the Vietnamese dong and foreign currencies will remain positive in 2019. They said the rate of non-performing loans out of the outstanding credit balance was kept at a low level last year and tends to decline in 2019. They expect a growth rate at 13.9 percent for capital mobilization, with faster growth of mobilized Vietnamese dong.
Deposit interest rates in the market in the early days of 2019 have fluctuated according to an upward trend. However, in the interbank market, interest rates are dropping. Specifically, SCB has applied new interest rates with over eight percent for customers who deposit online savings for a term of 3-6-12 months, while Viet Capital Bank has applied interest rates of eight percent for 12-month deposits, and 8.5 percent a year for 18-month terms.
According to the SSI report, interbank market interest rates by January 11, 2019 continued to decline, from 4.8 percent a year to 4.63 percent a year for the overnight term, while one-week, two-week, one-month, three-month terms saw a drop of 12-14 basic points.
The institutions surveyed also reported that the business environment improved greatly last year and more improvement is expected this year. In addition, they expect demand for banking services to grow, with greater demand for loans and payment services.
With positive developments in the monetary market in 2018, credit institutions expect that in 2019, the banking sector
will continue to flourish and policy management by the SBV and the government will keep inflation stable and ensure
capital supply for the economy.