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Tuesday, July 16, 2024

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Credit growth trajectory

The credit growth trajectory in the first six months of this year shows many similarities to the same period of last year, characterized by slow growth. Challenges for the Vietnamese economy The Vietnamese economy is under intense pressure due to weak domestic consumption and export performance amid unpredictable conditions in major markets such as the U.S., Europe, and China. To address these difficulties and stimulate growth, the State Bank of Vietnam (SBV) has introduced various measures to beef up lending, but as of mid-June 2024, credit had grown by a mere 3.79%. Businesses are struggling, demand for loans is low, and bad debt pressure makes banks cautious in making new loans. Despite a reduction in lending rates, demand for credit has not recovered as significantly as expected. In the first quarter of this year, many banks reported negative credit growth, especially those focused on retail lending. By May, with little improvement in consumer spending, corporate lending became the main driver of credit growth in the banking sector. Weak credit growth background Since GDP expanded by a substantial 5.66% in the first quarter, the economy has still been grappling with multiple challenges amid global economic uncertainties. Various organizations have predicted Vietnam’s […]
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Credit growth amidst sluggish demand

The banking system has seen lower-than-expected credit growth this year, at 1% as of mid-February. Though the State Bank of Vietnam (SBV) has taken...

Cheap deposits return

After a period of decline, non-term deposits, technically known as current account savings accounts (CASA), are showing signs of strong recovery at many banks,...

What will drive corporate bonds in 2024?

The resurgence of corporate bond issues in the last month of 2023 is a clear indication that this investment channel may gain traction in...

The irresistible trend for banking

Sustainable development is emerging as an undeniable trend within the finance and banking sector. Beyond traditional economic and capital safety considerations, financial and banking...

Banks seek profit recovery

The central bank's back-to-back interest rate cuts this year has enabled banks to lower borrowing costs. This move is likely to highlight differences in...

New playground for banks

Developing a brand exclusively for wealthy customers and offering asset management services for individuals and families have emerged as a strategy of banks in...

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