Vietnam Banks Lend VND155.608T to Stock, Realty Sectors in Jan-April

Banks and financial companies in Vietnam had provided VND155.608 trillion (US$9.153 billion) to stock transactions and realty sector in the first four months of this year, 11 per cent of the country's total outstanding loans.

 

Total loans by banks for stock and realty sectors in Vietnam accounted for 13.7 per cent last year, the SBV noted.

 

Loans for stock players were VND7.157 trillion, up 4 per cent from end-2008 and making up 0.5 per cent of the total outstanding loans, the SBV emphasized.

 

In the meantime, banks lent VND148.451 trillion (US$8.732 billion) to realty sector during the period, down 12 per cent from end-2008's figures and representing 10.5 per cent of total loans, the SBV noted, refusing that most of loans by banks were poured into stock transactions and realty sector over past months.

 

Non-performing loans accounted for 2.6 per cent of the country's total outstanding loans by banks, the SBV said.

 

The SBV also admitted that NPL rate is rising due to risks emerging from credit activities, but still under control.

 

The SBV has just asked banks not to loosen lending conditions while keep close watch on quality of subsidized loans.

 

Between February and May, banks and financial companies had extended soft loans to VND319.075 trillion under the government's subsidized lending program. (Banking Times)