Vietnam banks have room to lend vnd238tln in remaining 4 months: governor

Vietnam commercial banks are allowed to lend to the economy around VND238 trillion in the last 4 months of this year, or VND47.6 trillion a month.

Vietnam commercial banks are allowed to lend to the economy around VND238 trillion in the last 4 months of this year, or VND47.6 trillion a month to ensure credit growth of 15-18% this year, local online newspaper Thanh nien (youth) quoted the governor Nguyen Van Binh as saying at the deployment conference of the banking industry on September 7.

As of August 30, Vietnam credit growth rose 8.85% from a year ago compared with the target of 20% this year. Therefore, the governor said the credit growth target could be adjusted to 15-18% this year.

The broader measure of money supply, M2, rose 9.16% in the period compared with 15-16% target this year. Binh said the central bank will regulate M2 at a “reasonable” level, with an estimated of VND300 trillion more in the remaining months of the year or VND59.5 trillion/month.

The State Bank of Vietnam is likely to adjust non-production credit to better fit with practical situations.

It is estimated that by end-August, Vietnam’s credit growth for production rose 14.79% including agriculture loans up 30.5%, export loans up 35.02% while non-production loans fell 16.95% including securities investment loans dropping 43.03%, property loans declining 10.1% and consumption loans falling 23.12%. – Stoxplus.com

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial