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As of May 31, credit growth reached 8.04%


According to the State Bank of Vietnam (SBV), as of May 31, 2022, credit increased by 8.04% compared to the end of 2021 and 16.94% over the same period in 2021; 4/5 priority sectors have higher growth rate than the same period last year and 3/5 priority sectors have higher growth rate than general credit growth rate; credit for potentially risky sectors is controlled.

Regarding the lending situation of credit institutions, as of April 2022, credit for investment and securities trading accounted for about 0.5% of the total credit outstanding balance of the economy.

As of the end of April 2022, the total outstanding loans to the real estate sector of credit institutions reached VND 2,288,278 billion, an increase of 10.19% compared to the end of 2021, accounting for 20.44% of the total outstanding loans to the economy, the bad debt ratio was 1.62%.

According to the State Bank, credit in the first months of 2022 increased in line with the recovery of the economy and focused on production and business sectors. Based on the socio-economic targets on GDP growth and inflation set by the National Assembly and the Government, the State Bank annually develops oriented credit growth targets for the whole year of the credit institution systems; at the same time, make appropriate adjustments to the needs and capacity of the economy to absorb capital, to ensure the supply of capital for economic development, but also be careful with the risks of inflation and the risk of bad debt arising.

The State Bank directs credit institutions to grow credit safely and effectively, focusing on production and business fields, priority areas, creating favorable conditions for people and businesses to access bank credit capital; strictly control credit in potentially risky fields such as investment, real estate business, securities, BOT, BT projects in the field of transport, corporate bonds.

With pressure from inflation as well as a sharp increase in credit demand during the economic recovery, many analysts have the view that interest rates will be under increasing pressure in the near future.

Experts of SSI securities believe that inflation pressure will increase sharply in the second half of 2022 and expect interest rates to bottom this year. The prospect of raising interest rates depends on the speed of the economy's recovery.

According to the base scenario of SSI Research, deposit interest rates will increase by 0.2 - 0.25 percentage points in the second half of 2022.


Kylie Nguyen

© 2019 Vietnam Bank for Agriculture and Rural Development No. 2 Lang Ha street, Ba Dinh district, Hanoi, Vietnam
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