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| Credit institutions in the capital have promoted credit growth through offering many preferential credit programs and packages and applying flexible interest rate policies__Photo: VNA |
Credit within the banking system to the end of May 2024 increased by only 2.41 percent against the end of 2023, far from the credit growth target, the Government reported.
The Government has set a credit growth target of 5 percent for the first six months of 2024 and 15 percent for the whole year.
Credit growth of banks in Ho Chi Minh City and Hanoi by the end of May 2024 was double that of the average rate elsewhere in Vietnam.
According to newly released data from the Hanoi Statistics Department, total outstanding loans in the capital city by the end of May 2024 reached VND 3.8 quadrillion, an increase of 1.14 percent compared to the previous month and 5.09 percent compared to the end of 2023.
Of the total, short-term outstanding loans were VND 1.6 quadrillion, an increase of 6.61 percent compared to the end of last year and medium and long term outstanding loans reached more than VND 2.19 quadrillion, an increase of 4.01 percent.
According to the Hanoi Statistics Department, credit institutions in the capital have promoted credit growth through offering many preferential credit programs and packages and applying flexible interest rate policies.
The average lending interest rate is 7.5-9.7 percent per year, while the maximum short-term loan interest rate for priority sectors, including agriculture, rural areas, exports and SMEs, is about 3.6 percent per year.
Meanwhile, the HCM City Statistics Department reported the total outstanding loan of credit institutions in the city as of May 31 was estimated at VND 3.61 quadrillion, an increase of 4.5 percent compared to the end of 2023. Of which, short-term outstanding loans were at nearly VND 1.72 quadrillion, up 6.1 percent compared to the end of last year, and medium and long term outstanding loans were more than VND 1.89 quadrillion, up 3.1 percent compared to the beginning of the year.
As for capital mobilization, similar to the general trend of the whole country, capital mobilization of credit institutions in the two cities decreased compared to the beginning of the year.
Banks in Hanoi raised nearly VND 5.32 quadrillion by the end of May 2024, an increase of 0.15 percent compared to the previous month and a decrease of 0.38 percent compared to the end of 2023. Of the total, deposits reached VND 4.67 quadrillion and issuance of valuable papers reached VND 641 trillion.
Deposit interest rates offered by Hanoi -based banks at the end of May increased slightly compared to February and March, reaching 0.1-0.5 percent per year for non-term deposits, 1.8-3.3 percent per year for 1-6 month deposits, 3-5.2 percent per year for 6-12 month deposits and 4.1-5.7 percent per year for deposits above 12 months.
In HCM City, by the end of May, the total mobilized capital of credit institutions was estimated at more than 3.52 quadrillion, up 0.2 percent compared to the previous month and down 1.2 percent compared to the beginning of the year.
