Credit growth to reach five-year high in 2016: survey

By VietnamPlus April 6, 2016 | 05:10 pm PT

The banking system’s credit growth is expected to grow 20.09 percent in 2016 : BaoViet Bank

Vietnam's annual credit growth is expected to quicken to 20.09 percent this year, the fastest pace in five years, said the Monetary Forecast and Statistics Department under the State Bank of Vietnam (SBV).

The report was made based on a survey of business trends among financial institutions in the country.

Commercial banks are said to have adjusted their expectations on the growth of deposits and lending in the year to a more rational level.

Lending of the banking sector is estimated to expand 17.54 percent in 2016, slightly higher than last year’s growth of 17.46 percent.

Majority of commerical banks asked in the survey said bad debts in the banking system would be significantly reduced in the first and second quarters of the year. About 90 percent of survey participants estimated bad debts would stay lower than 3 percent of outstanding loans for the year of 2016.

The survey also expected strong liquidity for both Vietnamese dong and foreign currencies in the entire banking system and forecasted stable conditions for the whole year.