return icon Vietnamnet.vn

Banks prepare capital to meet credit demands in 2022

Banks have been increasing the attraction of deposits to have enough capital for the credit needs of customers. Credit demand is expected to increase from the first quarter of this year.

{keywords}

 

This stands in contrast to the years before the pandemic, when credit in the first quarter often declined due to low capital demand.

This year, credit has increased from January. According to the State Bank of Vietnam (SBV), credit as of January 25, 2022 rose by 2.74 percent compared to the end of 2021. Compared with January of the past ten years, the rise was the highest rate. According to experts, the surge was a positive signal, showing the economy is recovering strongly and capital demand is increasing rapidly.

The SBV sets a credit growth target of about 14 percent for 2022, against 13.53 percent of 2021. According to the SBV, along with preferential interest rate credit packages given to the production and business sectors, credit growth will be more flexible this year to support economic recovery.

Nguyen Dinh Tung, OCB director, said the economy had been gradually recovering after the fourth wave of COVID-19 was controlled thanks to the high vaccine coverage rate. Therefore, credit had increased again since the last quarter of 2021 when firms needed capital to recover production and business activities.

With the Government’s plans to introduce stimulus packages and accelerate disbursement of public investment capital this year, Tung expected credit would increase in 2022, even in the first quarter when credit demand often declined in years before the pandemic.

A credit trend survey in Q1 2022 conducted recently by the SBV also showed banks expect credit demand to continue to improve in the first quarter and the whole of 2022, of which processing-manufacturing, import-export, housing purchase, electricity production-distribution and construction will be five sectors having the highest demand for loans in 2022.

Though savings interest rates are increasing, Tung forecast lending interest rates would continue to decrease in 2022 under the direction of the Government and the SBV.

Trinh Bang Vu, head of Shinhan Bank Vietnam’s loan division of individual customers, also expected with lending interest rates remaining at a low level, capital needs of individual customers to buy houses, cars and consumer goods would increase.

According to SBV Governor Nguyen Thi Hong, the banking industry cut lending interest rates three times totalling 1.8 percentage points in the past two years. The industry will strive to continually reduce the rate by 0.5-1 percentage points in 2022 and 2023.

To prepare capital sources to meet lending needs this year, banks have been adjusting up deposit interest rates to attract idle money.

VPBank in early February raised its rates for many terms by 0.7 percentage points per year compared to early January 2022. The highest online savings interest rate at VPBank is 6.7 percent per year for deposits from 50 billion VND with terms from 36 months.

Techcombank has also raised the rates of many terms by 0.4-0.5 percentage points per year from February 7, 2022. Accordingly, the highest savings interest rate at Techcombank is 5.8 percent per year, up 0.4 percentage points compared to the beginning of January 2022. This rate is offered to priority customers depositing Phát Lộc savings at the counter on 36-month terms or online savings on the same term.

Industry insiders forecast deposit interest rates would continue to increase in the near future when the credit demands of customers surge after the pandemic.

 

Source: VNS

Experts suggest banks not be involved in economic recovery packages to avoid bad debts

Experts suggest banks not be involved in economic recovery packages to avoid bad debts

Though businesses need the Government’s economic recovery packages to rebound from the pandemic, the Government should consider limiting the participation of commercial banks in the packages to help them avoid bad debt risks, experts suggest.

MORE NEWS

PetroVietnam proposes US$19 billion oil refinery complex and national oil reserve

The Vietnam Oil and Gas Group (PetroVietnam) has proposed to the Government an investment in a refinery and petrochemical complex and a national reserve of crude oil and petroleum products in Long Son Petroleum Industrial Park.

27 senior Party members disciplined in H1/2022

The Party Central Executive Committee, the Politburo, the Secretariat, and the Central Commission for Inspection disciplined 27 officials managed by the Politburo and the Secretariat in the first six months of 2022, 20 cases up year on year.

Hanoi to inspect fire prevention at all karaoke parlors

Half a month after the karaoke parlor fire in Cau Giay District, the Hanoi People's Committee has asked districts to inspect all karaoke parlors and bars and handle violations.

Vietnam needs extra US$368 billion to achieve net zero emissions

As the energy industry has a crucial role in achieving net zero emissions by 2050, it requires a structural transition toward green growth. Therefore, Vietnam needs assistance from developed countries regarding both financial and technical issues.

Labor Minister proposes harsh punishment for child offenders

Minister of Labor, War Invalids and Social Affairs Dao Ngoc Dung signed an official letter requesting to have harsh punishment for child offenders and strengthening measures to prevent violence against children.

Pu Sam Cap Cave: the hidden charm of Lai Chau

Pu Sam Cap Cave in Pu Sam Cap Commune, Sin Ho District, in the northwestern province of Lai Chau, is known for its wild, beautiful and mysterious beauty.

Hanoi’s three largest parks are seriously degraded

Many public works in the parks of Thu Le, Bach Thao, and Thong Nhat in Hanoi are in disrepair, affecting urban beauty and public experiences.

Why are thousands of public employees taking private-sector jobs?

Many public employees have recently quit their jobs and taken a job in the private sector. This indicates that the public sector is not attractive and that many problems need to be addressed.

Kon Tum Province records 300 earthquakes over a year

The Central Highland province of Kon Tum has recorded more than 300 earthquakes since April 2021, according to the provincial administration.

Highly-infectious BA.2.74 Omicron sub-variant detected in Vietnam

Vietnam has detected a number of new, highly-contagious Omicron sub-variants, including BA.2.74, said the General Department of Preventive Medicine on August 17.

Relaxing visa policy to attract more foreign tourists to Vietnam: insiders

Vietnam’s visa policy should be more open to lure international tourists, insiders have said.

Vietnam Airlines resumes, increases frequency of several flights in September

The national flag carrier Vietnam Airlines will resume flights connecting the central city of Da Nang with Malaysia’s Kuala Lumpur and Thailand’s Bangkok from September 1 and September 15, respectively, the carrier has announced.

Da Lat listed among world’s best places for binge-worthy dating

Booking.com has named Vietnam's Da Lat city among the world's six places for the summer’s binge-worthy dating shows.

Quang Ninh refutes allegations of sea encroachment in Ha Long Bay

The authorities of Quang Ninh province has refuted information that it has allowed a project to conduct sea encroachment and subdivide land plots for sale, which seriously undermined the conservation of the UNESCO-recognised Ha Long Bay.

VN extends time of anti-dumping investigation on tables, chairs from Malaysia, China

The Ministry of Industry and Trade (MoIT) has decided to extend time limit of investigation on applying anti-dumping measures on table and chair products originating from Malaysia and China by six months.
back_to_top