Outstanding Loan Growth Slows in Third Quarter
Outstanding loans as of the end of September rose by only 2.4 per cent over the end of the second quarter and 10.4 per cent from the end of 2017. The slowdown was attributed to the escalating US - China trade war and inflation control target, rather than boosted credit lending, information about the end of foreign currency credit, resolution to enhance market discipline (including operational safety indicators of commercial banks) and continued tightening of credit for some sectors (securities and real estate).
VND deposit rates sometimes increased in the third quarter, mainly long terms, while interest rates on demand and short-term deposits were little changed. Deposit rate changes were affected by such factors as slow credit growth, interbank interest rates adjusted to ease pressures on VND/USD exchange rates, market share competition among commercial banks to prepare funds to meet credit demand in 2018 and early 2019; and increased inflationary pressures.
Nguyen Thanh
Vietnamese
