Chủ đề: Credit

Credit in the first quarter rose 5.04 per cent compared to the end of 2021 and 15.9 per cent year-on-year. The rise in credit led to an increase in the Interbank Offered Rate (IBOR). As of early April, the IBOR had increased over 2 per cent per annum for nine consecutive weeks, doubling since the end of 2021 and 5-6 times higher year-on-year.

Credit institutions are expected to “slightly loosen” overall credit standards this year and focus on priority sectors and industries such as wholesale, retail, import and export, construction, and consumer lending, while tightening them on “high-risk” sectors such as securities and real estate.

The State Bank of Vietnam (SBV) is implementing solutions to create favorable conditions for businesses and individuals to access bank credit and has set out three goals on monetary policy management in 2022. Interest rates will be adjusted in line with the macro balance, inflation, market movements, and monetary policy objectives, and the network of credit institutions will be restructured in association with bad debt settlement.

Though interest rates are at their lowest level for many years, credit has not yet developed to the extent possible. In Hanoi, which accounts for 25 per cent of the country’s lending, credit in October increased only 0.95 per cent compared to September; the lowest month-on-month increase in the past six months.