VCN – In 2019, hawaii Bank of Vietnam (SBV) stated credit development had reached 13.5percent, the lowest point since 2014. In 2020, the SBV set the prospective of credit growth at14 % with adjustment on the basis of the situation that is actual. The reduced development of credit raised issues about its effect on the whole economy, particularly the money happens to be greatly reliant on bank credit.
Why had been credit development low?
In accordance with the SBV, by the final end of 2019, the credit reached 13.5 per cent set alongside the end of 2018. When compared with the SBV’s forecast made previously this current year, credit development ended up being lower than one per cent this present year, the point that is lowest in the final 5 years. Nonetheless, credit has centered on priority areas, manufacturing and company. By December 31, 2019, credit to farming and areas that are rural by about 11 percent, accounting for 25 % associated with the total outstanding loans for the economy; tiny and moderate enterprises increased by about 16 %; and high-tech enterprises went up by about 15 %.
Dr. Can Van Luc, a monetary specialist, said this resultwas positive development with descending modification. Credit now makes up about 135 per cent of GDP, a level that is high to your measurements associated with economy, plus the amount of financial development. Therefore, banking institutions are concentrating on ensuring credit quality, directing it to practical requirements associated with economy. (más…)