Banks likely to pump $82B into economy through loans

By Anh Minh January 6, 2024 | 03:53 am PT

A cash transaction is pictured at a bank in Hanoi. Photo by VnExpress/Giang Huy

The State Bank of Vietnam has set a credit growth target of 15%, equivalent to VND2 quadrillion ($82.03 billion), this year.

Last year banking credit grew by 13.71%, meaning VND1.3 quadrillion entered the economy, deputy governor of the central bank, Dao Minh Tu, said at a government meeting Friday.

"If the situation is favorable, in the second half of the year the State Bank of Vietnam will give healthy banks more credit growth quota."

In December lenders had scrambled to achieve their credit growth target by offering interest-free loans and loans through credit cards.

In that month alone credit growth was up 4.56 percentage points.

Also at the meeting, Deputy Minister of Finance Nguyen Duc Chi said that there are now over seven million stock trading accounts.

The stock market capitalization is now VND6 quadrillion, up 9.5% from 2022 and equivalent to 62% of GDP.