Credit increased by 8.53% - Quang Ninh Electronic Newspaper

Outstanding credit by the end of the third quarter is estimated to have grown by 8.53%, higher than the same period last year.

According to the General Statistics Office (GSO), credit growth of the economy as of September 27 reached 8.53%, while in the same period last year it was only about 6.24%. It is estimated that the banking system has pumped into the economy nearly 1.16 quadrillion VND since the beginning of the year.

Previously, as of August 26, the State Bank said that the credit growth rate reached about 6.63%. Thus, within the past month, outstanding credit increased by 1.9%, equivalent to nearly 260,000 billion VND pumped into the economy.

In the context of credit balance increasing faster than the same period, deposit mobilization of credit institutions increased at a lower rate. As of September 27, capital mobilization from individuals and organizations increased by nearly 4.8% (same period last year was more than 6.6%).

In that context, banks tend to increase issuance. bond with higher interest rates than savings deposits. Including issued valuable papers, the total means of payment of the economy increased by 5.1%, approximately equal to the 5.4% of the same period last year.

Credit growth figures improved compared to the same period in 2023, but bank leaders said that business borrowing demand remained low. Many businesses have scaled down production, are cautious, and are not bold in using loans.

The real estate sector, which contributes greatly to annual credit growth, is still facing difficulties. Real estate companies and projects face many challenges as legal procedures are not yet complete and financial capacity is seriously reduced. The income of real estate buyers is decreasing, while the supply of housing at reasonable prices is not yet met.

In the early stages of this year, according to the State Bank, the credit growth of banks was uneven, with some units experiencing low growth, even negative growth, while some credit institutions increased close to their assigned targets. At the end of August, the management agency granted additional credit growth limits to banks to reach 80% of the credit targets assigned at the beginning of the year.

This year, the industry's credit growth target is 14-15%. Based on actual developments, the regulator sets credit growth targets and proactively adjusts limits for each bank, without requiring them to submit additional requests. This is a difference in the State Bank's credit management compared to previous years, which is usually divided into many phases and requires banks to submit requests.

Source