CREDIT GROWS STRONGLY IN JAN

HCMC - Banks have said credit in the banking system expanded 2.18% in January, much higher than in the same month of previous years. In January last year, credit declined 0.2% compared to December 2015. Credit at the end of the first quarter last year grew 1.54% against late 2015. The credit growth target for this year is about 18%, the same as in 2016.

Of total outstanding loans, the amount in Vietnamese dong rose by 2.07%, while growth in foreign currency loans was stronger, 3.4%.

This year the central bank has yet to release data on credit growth. But banks said the banking system is rapidly pumping huge amounts of money into the economy.

Deposits fell 0.38% in January. In particular, deposits in dong and foreign currency edged down 0.41% and 0.06% respectively.

As a rule, the period before and after the Lunar New Year holiday (Tet), savings at banks slow down as the demand for cash tends to surge. Post-Tet cash flow into banks will return to normal when the needs for year-end payments are no longer strong.

Thus, it is normal that capital mobilization in the banking system is down in January, but improves in February and March.

Source: The Saigon Times