Credit growth remains far from the government’s target

Credit in the banking system at the end of May 2024 increased by only 2.41% compared to the end of 2023, which is far from the targeted credit growth, the government said.

Hanoi (VNS/VNA) – Credit in the banking system at the end of May 2024 increased by only 2.41% compared to the end of 2023, which is far from the targeted credit growth, the government said.

The government has set a credit growth target of 5% in the first six months of 2024 and 15% for the full year.

Bank lending growth in Ho Chi Minh City and Hanoi by the end of May 2024 was twice the average rate elsewhere in Vietnam.

According to newly released data from the Hanoi Department of Statistics, the total amount of outstanding loans in the capital reached VND 3.8 trillion by the end of May 2024, an increase of 1.14% compared to the previous month and 5.09% compared to the end of 2023 r.

The total outstanding short-term loans reached VND 1.6 trillion, an increase of 6.61% compared to the end of last year, and the outstanding medium and long-term loans reached more than VND 2.19 trillion, an increase of 4.01%. .

According to the Hanoi Department of Statistics, lending institutions in the capital promote lending growth by offering many preferential loan programs and packages and applying flexible interest rate policies.

The average interest rate on loans is 7.5-9.7% per annum, while the maximum interest rate on short-term loans is for priority sectors, including: agriculture, rural areas, exports and SMEs, is approximately 3.6% per year.

Meanwhile, the HCM Municipal Statistics Department reported that the total amount of outstanding loans of credit institutions in the city as of May 31 was estimated at VND 3.61 trillion, an increase of 4.5% compared to the end of 2023. This includes outstanding short-term loans at almost VND 1.72 trillion, an increase of 6.1% compared to the end of last year, and outstanding medium- and long-term loans amounted to over VND 1.89 trillion, an increase of 3.1% compared to the beginning of the year .

In terms of capital mobilization, in line with the general trend across the country, capital mobilization of credit institutions in both cities decreased compared to the beginning of the year.

Banks in Hanoi had collected almost VND 5.32 trillion by the end of May 2024, an increase of 0.15% compared to the previous month and a decrease of 0.38% compared to the end of 2023. Total deposits reached VND 4.67 trillion, and the issuance of valuable documents reached the amount of VND 641 trillion.

Deposit rates offered by Hanoi-based banks at the end of May increased slightly compared to February and March, reaching 0.1-0.5% per annum for overdue deposits, 1.8-3.3% per annum for 1-6 month deposits , 3-5.2% per annum for deposits for 6-12 months and 4.1-5.7% per annum for deposits over 12 months.

In HCM City, at the end of May, the total mobilized capital of credit institutions was estimated at over VND 3.52 trillion, an increase of 0.2% compared to the previous month and a decrease of 1.2% compared to the beginning of the year./.