Hanoi August credit growth – 0.98% , deposit -0.74% against july

Total outstanding loans of commercial banks in Vietnam’s capital city of Hanoi in August are estimated to have fallen 0.98% on month while total deposits have dropped 0.74%.

In August, the savings and payments at Hanoi-based banks were down 0.9% and 1.5% on-month, respectively, but bills of exchanges increased by 1.1%, the local financial news provider CafeF reported August 22 citing the municipal Statistics Office.

In the first 8 months of the year, total outstanding loans are estimated to have increased 6.13% since the beginning of this year to VND541.23 trillion while total deposits have dropped 5.44% to VND751.98 trillion.

Of note, short-term loans decreased by 0.9% on-month, but it was still up 4.76% from the beginning of the year.

The governor of the State Bank of Vietnam said last week that banks’ liquidity was in a good shape and the central bank will take measures to pull down rate and clear credit knots to drive funds to the economy, including possibility of removing LDR regulation and deposit rate cap and issuing T-bills.

The governor also aimed to cut lending interest rate to 17-19% p.a. from mid-September. – Stoxplus.com

Tags: Vietnam banking industry, Vietnam credit growth, Vietnam finance, Vietnam financial