A fast rise in dollar lending has bolstered banks credit growth and isexpected to continue through year-end, the Vietnam Investment Review(VIR) reported on November 24.
By the end of October, bankingsector credit grew 8.63 percent, mostly from lending in US dollars,which rose more than 20 percent in the period.
Dollar lending isforecast to maintain its growth over the last two months of the year, asthe demand for production-related imports and exports surges towardsthe New Year.
Vietnam International Bank (VIB)’s General DirectorLe Quang Trung was quoted as saying that the bank’s dollar lending rosesteadily over the past few months on the back of a major disparitybetween Vietnam dong and dollar lending rates.
According to theVIR, an executive of a joint stock commercial bank based in Hanoi said,“Most banks have reported ample capital sources amid the growingpressure of running profitably. As a result they have put greater effortinto lending, particularly in dollars, to take advantage of lower ratesand more borrowers.”
Foreign currency lending at many banks has reportedly grown at 20-30 percent so far this year.
Asource from leading local financial institution Vietcombank admittedthat dollar lending has ‘rescued’ the bank’s credit growth in thisyear’s first half, with lending in Vietnam dong inching up a mere 0.44percent but that in dollars spiking 25 percent.
Senior economistLe Xuan Nghia said strong dollar lending growth is a positive sign forthe economy, reflecting healthy import-export performance.
Accordingto head of the State Bank of Vietnam’ Credit Department Nguyen TienDong, soaring foreign currency lending over the past few months is wellwithin the central bank’s control.
“Outstanding loans in foreigncurrencies remain modest, currently at 15 percent of the total. TheState Bank has only allowed banks to lend dollars to firms that alsoearn in foreign currencies, to ensure banks are not at risk of losingtheir dollar liquidity,” Dong was cited as saying.
“Over the longhaul, the State Bank will be steadfast in its anti-dolarisation goals,but will also take flexible approaches to each specific period,” headded.-VNA
By the end of October, bankingsector credit grew 8.63 percent, mostly from lending in US dollars,which rose more than 20 percent in the period.
Dollar lending isforecast to maintain its growth over the last two months of the year, asthe demand for production-related imports and exports surges towardsthe New Year.
Vietnam International Bank (VIB)’s General DirectorLe Quang Trung was quoted as saying that the bank’s dollar lending rosesteadily over the past few months on the back of a major disparitybetween Vietnam dong and dollar lending rates.
According to theVIR, an executive of a joint stock commercial bank based in Hanoi said,“Most banks have reported ample capital sources amid the growingpressure of running profitably. As a result they have put greater effortinto lending, particularly in dollars, to take advantage of lower ratesand more borrowers.”
Foreign currency lending at many banks has reportedly grown at 20-30 percent so far this year.
Asource from leading local financial institution Vietcombank admittedthat dollar lending has ‘rescued’ the bank’s credit growth in thisyear’s first half, with lending in Vietnam dong inching up a mere 0.44percent but that in dollars spiking 25 percent.
Senior economistLe Xuan Nghia said strong dollar lending growth is a positive sign forthe economy, reflecting healthy import-export performance.
Accordingto head of the State Bank of Vietnam’ Credit Department Nguyen TienDong, soaring foreign currency lending over the past few months is wellwithin the central bank’s control.
“Outstanding loans in foreigncurrencies remain modest, currently at 15 percent of the total. TheState Bank has only allowed banks to lend dollars to firms that alsoearn in foreign currencies, to ensure banks are not at risk of losingtheir dollar liquidity,” Dong was cited as saying.
“Over the longhaul, the State Bank will be steadfast in its anti-dolarisation goals,but will also take flexible approaches to each specific period,” headded.-VNA
