Central Bank reports strong credit growth in first quarter

Unlike the trend in recent years, the banking system this year saw strong credit growth hitting 3.14 percent as of March 23 compared to the end of 2016, reported the State Bank of Vietnam (SBV) on Wednesday.

SBV reports strong credit growth in the first quarter this year (Photo: SGGP)

The growth rate hit 1.79 percent during the same period last year.

This year, credit has flown into production and trading with outstanding loan accounting for 80 percent.

In the first quarter, SBV continued stabilizing interest rates, instructing credit institutions to reduce costs and improve business performance to lower loan interest rates.

At present, reward interest rate swings from VND4.8-5.4 percent a year for below six month term, 5.6-6.7 percent for terms of 6-12 months and 6.7-7.4 percent for over 12 months term.

Loan rates approximates 6-9 percent per year for short term and 9-11 percent for medium and long terms.

With flexible and proactive management, SBV has kept exchange rates steady and market liquidity good. The banking system has met legitimate capital demand by individuals and organizations in a timely manner.

By Ham Yen – Translated by Hai Mien

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