Total credit grows 6.53 pct as of May 25

14:37 | 06/06/2017 Finance - Banking

Vietnam's total credit growth was posted at 6.53% as of May 25, a higher growth rate when compared to that of the same period in 2016 (5%) and 2015 (4.5%), contributing to boosting production and business activities.

total credit grows 653 as of may 25
SBV Deputy Governor Nguyen Thi Hong speaks at the press brief

The information was announced by Deputy Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong at a press brief in Hanoi on June 5.

Hong noted that the high credit growth rate has supported domestic production and business activities, amid limited disbursement of public investment capital in the past few months.

According to the SBV report, the central bank issued four instructions on monetary policy operations since the beginning of the year, helping to keep the monetary market and foreign exchange rate stable.

"Credit disbursement has focused on prioritised sectors as directed by the Government and the credit given to the real estate sector has slowed down when compared to 2016", Hong noted.

Hong said that keeping stable interest rates in 2017 will be a challenge for the banking system. At the start of the year, some commercial banks increased deposit rates for over 12-month terms but the SBV has worked out solutions to stabilise interest rates.

In addition, the SBV has properly regulated interest rates on the inter-bank market to help credit institutions maintain stable rates.

Hong added that the SBV has always reminded credit institutions to closely monitor the rate of short-term capital, used for mid and long-term loans and credit disbursement, for the real estate sector, as well as BT and BOT projects, in order to avoid risks.

The SBV official said that the foreign exchange market is also stable with over 1% increase of the central rate since the beginning of the year.

Theo NDO