Credit Growth in Vietnam Touches 15.3% in Jan-Nov, Consumer Lending Booms

Tuan Minh

17:47 04/12/2017

BizLIVE - A boom in consumer lending has helped boost the overall credit growth in the Vietnamese banking system.

Credit Growth in Vietnam Touches 15.3% in Jan-Nov, Consumer Lending Booms

Total credit in the Vietnamese banking system grew 15.3% between January and November.

Total credit in the Vietnamese banking system grew 15.3% in the 11 months through November this year, compared to a 15.6% increase in the same period last year, as banks pumped more cash to meet demand in the high season, the National Financial Supervisory Commission has said in a monthly report.
Lending by banks increased 2.8% between October and November, the commission added.
The commission, which runs as the government’s financial watchdog, noted that lending in foreign currency expanded 12.3% from the end of 2016, more than doubling the expansion of 5.8% in the same period last year.
Meanwhile, loans in the Vietnamese dong increased 15.6% in the 11-month period, lower than a 16.6% increase in the same period last year, and accounted for 91.8% of total credit.
The commission informed that lending for the agricultural sector accounted for 8.1% of total credit while that for real estate and construction made up 15.5%, down from 17.1% in 2016, of which 5.8% of the loans were funneled into the real estate industry.
Notably, consumer lending continued at a rapid pace, with growth hitting 59% in the 11-month period, driven mainly by home loans.
The government-run commission said mobilization growth slowed to 13.5% between January and November, compared to 16.6% a year earlier.
Liquidity in the banking system remained stable, buoyed by the State Bank of Vietnam net injecting 124 trillion dong ($5.46 billion) since the start of the year via foreign currency purchases and open market operations.
The average loan-to-deposit ratio (LDR) of the banking system stood at 86.9%, up from 85.6% at the end of 2016.
Interest rates increased by 70-80 basis points in the interbank market while major banks revised up deposit rates, the commission said.

TUAN MINH

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