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You are here: Home / Stronger credit growth seen in Q4

Stronger credit growth seen in Q4

Stronger credit growth seen in Q4 Dinh Duy By Dinh Duy – The Saigon Times Daily A customer (L) transacts with Vietnam International Bank. ANZ Bank expects Vietnam’s credit growth rate to accelerate in the fourth quarter – PHOTO: KINH LUAN HCMC – ANZ Bank in a recent macro-economic report projected that credit growth in the banking system in Vietnam would accelerate in the last quarter of this year. According to the Vietnam Update report, this year’s lending had grown 7.26% as of end-September compared to 4.33% in August. Domestic liquidity remained abundant with short-term rates in Vietnam dong dropping over September. Despite the subsequent rise in rates, liquidity is still supportive of economic activity. By the end of the third quarter, most commercial banks had cut retail deposit rates by around 20-50 basic points for tenors up to 12 months. Meanwhile, the governor of the State Bank of Vietnam still hopes that a credit growth target of 12-14% is obtainable this year as credit growth usually gains traction by the end of the year. “However, as we mentioned in last month’s Vietnam Update, the credit growth target was only reached last year after extraordinary incentives were passed in the…

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