The State Bank of Vietnam (SBV), the country’s central bank, has just taken a number of measures to curb the credit growth between 25 per cent and 27 per cent after total loans funneled into the economy grew 22 per cent between January and July in an effort to keep inflation below double digits this year.
The SBV has just issued a circular to urge local banks and financial companies to lower the rate of short-term deposits that they mobilize for lending in the medium and long-term to 30 per cent from the current 40 per cent. The measures will take effect 45 days from Aug 10.
Local people’s credit funds are asked to cap their rate at 20 per cent, the SBV said.
Also, the SBV has pushed the Bank for Investment and Development of Vietnam, the Vietnam Bank for Agriculture and Rural Development, the Mekong Housing Bank, Vietcombank and Vietinbank, which all account for 70 per cent of the domestic credit market, to cap their credit growth at 25 per cent this year.
Between January and July, total savings among local banks jumped 20.92 per cent, while the country’s payment balances, or M2, surged 20.92 per cent.
In July, the country’s total investments were up 2.15 per cent from June, the SBV said.
Commercial banks have scrambled to raise deposit interest rates to mobilize funds with the highest rate being offered at 10.3 per cent by the HCM City Housing Development Joint Stock Bank for a 36-month term, close to the ceiling lending rate of 10.5 per cent.
This year, Vietnam targets GDP growth at 5 per cent or more, state media said. (The People, VNA)
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