Promoting Solvency and Safety (21/9)
21/09/2011 - 13 Lượt xem
The State Bank of Vietnam said that from late 2010 to the end of August 2011, the total liquidity increased 9.16 percent (the growth was 16.41 percent between late 2009 and the end of August 2010) and credit for the economy increased 8.85 percent (the growth was 16.9 percent between late 2009 and the end of August 2010), the latter of which is half of the credit growth targeted for 2011. The State Bank have assessed that although both total liquidity and credit for the economy grew slower than they did between late 2009 and the end of August 2010 they are compliant with the inflation control targets.
In the first eight months of 2011, the credit structure transformed in accordance the Resolution 11/2011/NQ-CP. Between January and August 2011, credit for production was up 14.79 percent (of which credit for agriculture and rural development alone soared 30.5 percent), while export credit improved 35.02 percent, and credit for non-production activities fell 16.95 percent (of which the outstanding loan balance for securities investment and trade decreased 43.03 percent and that for real estate businesses was down 23.12 percent).
Bank's interest rates were high early this year and the related high pressure has decreased since May this year. In late August 2011, a number of credit institutions reduced their loan interest rates to 17-19 percent for conventional production and trading activities. Commercial banks have pledged to apply a ceiling deposit interest rate of no more than 14 percent per year and reduce their loan interest rates to 17-19 percent per year (referring to loans for conventional production and trading activities).
The foreign exchange market and exchange rates changed strongly in the first quarter of this year. After the State Bank of Vietnam increased average inter-bank exchange rates, reduced the difference between the highest and lowest exchange rate along with taking measures to manage the black market, exchange rates were under control, the difference between exchange rates on the official market and those on the black market was reduced, the solvency on the inter-bank market improved, and commercial banks balanced foreign currency supply and sold foreign currency to the State Bank of Vietnam for increasing the foreign reserves.
Short supply of credit in the form of Vietnam dong has been eased thanks to increases in short-term deposits and Vietnam dong-based credit that tends to decrease. Although credit in the form of foreign currency experienced a high growth it was harmonized with foreign debts. Bad debts in credit institutions have increased but are still under control with the rate of bad debts per total outstanding loan balance was 3.04 percent in late July, up 0.88 percent from 2.16 percent in late 2010.
To reach targets set according to Resolution 11/2011/NQ-CP, Nguyen Minh Tuan, the deputy governor of the State Bank of Vietnam said at a banking sector task fulfillment seminar on September 7 in Hanoi that the State Bank will continue applying tight, flexible monetary policies to well control money supplies, keep the credit growth rate under less than 20 percent (about 15-18 percent) and the total liquidity growth at 15-16 percent, assure stable exchange rates, decrease loan interest rates in compliance with decreases in inflation, and assure the solvency and system safety of the whole banking and credit system.
The State Bank will amend regulations on lending foreign currency capital towards applying stricter requirements to borrowers that do not earn foreign currency from production and trading activities to pay off debts and requiring credit institutions to assure foreign currency solvency in order to minimize risks and contribute to stabilizing the foreign exchange market.
Other things to be done include maintaining a ceiling deposit interest rate of 14 percent per year to pave the way for credit institutions to decrease their loan interest rates to 17-19 percent per year (referring to loans for conventional production and trading activities); maintaining the existing foreign currency loan interest rates that credit institutions are applying to organization and individual customers; issuing a circular providing guidelines for credit institutions to authorize and be authorized by organizations and individuals to avoid cases where interest rates are pushed up; and managing interest rates on a sustainable basis./.
Source: VEN.
Source: VEN.
