4:35:31 PM | 31/10/2008
Banks in Vietnam report VND50 trillion (US$3.03 billion) surplus of working capital and credit growth of the entire banking system in Oct soars between 18 per cent and 19 per cent and is forecast not to rise 30 per cent this year as the local banks are cautious about lending, economists said Wednesday.
"We should not look back at galloping inflation in the past, and should forecast it in the coming months as inflation is easing, outstanding loans of the entire banking system are slowing," Le Xuan Nghia, head of the State Bank of Vietnam's Banking Development Strategy was quoted by the Dau Tu Chung Khoa (Securities Investment) newspaper published by the Ministry of Planning and Investment as saying.
"Credit growth is predicted to climb 26 per cent this year, and no need to worry to curb it below 30 per cent" Mr Nghia said.
Mr Nghia also proposed the government should loosen step by step the monetary policies based on careful selection.
Property bad debts of credit institutions are forecast to hit VND30 trillion (US$1.818 billion) by the end of the year, up from VND22 trillion (US$1.333 billion) at the end of Sept.
Meanwhile, Le Duc Thuy, former governor of SBV, head of the National Department of Finance Supervision said slowing credit growth is a bad sign for the country's economy and now local businesses are reluctant to borrow money from banks mainly because of high costs.
Banks now should take active measures to finance businesses, Thuy recommended
Credit growth of 25 per cent-26 per cent is a reasonable level, Thuy added. (Securities Investment)
Vietnamese
