11:37 (GMT +7) - Monday 20/08/2018

Banking & Finance

5M capital mobilization up 6.2%

Released at: 16:25, 14/06/2018

5M capital mobilization up 6.2%

Photo: Duc Anh

Credit institutions mobilize 7.4% more VND and 3.1% less foreign currencies in first five months.

by Hai My

Capital mobilization by credit institutions had increased 6.2 per cent since the end of last year by the end of May and was 4.3 per cent higher year-on-year.

Mobilized Vietnam dong (VND) rose 7.4 per cent while mobilized foreign currencies fell 3.1 per cent, according to a National Financial Supervisory Commission (NFSC) report released last month. VND accounted for 91.3 per cent of all funds mobilized under the CI system, after standing at 90.3 per cent at the end of 2017.

Credit has increased 5.8 per cent this year after rising 6.9 per cent in the same period last year. Credit in VND rose 5.6 per cent and accounted for 91.9 per cent of total credit, while credit in foreign currencies rose 8 per cent but accounted for just 8.1 per cent of the total.

Medium- and long-term credit increased 5.4 per cent in the first five months, while short-term credit rose 6.5 per cent; both down only slightly year-on-year. Long-term credit accounted for 52.7 per cent of the total, unchanged from the end of last year.

Borrowers changed slightly. The proportion of household loans fell to 16.6 per cent of the total from 17 per cent at the end of 2017, while the proportion for construction and real estate increased slightly, to 16.3 per cent from 16 per cent.

The NPL ratio was reported at 2.3 per cent at the end of May, after being 2.5 per cent at the end of 2017. Credit institutions have focused on bad debt management this year, primarily using risk provisions, and managed about VND20 trillion ($876.59 million) in bad debts. Collateral accounted for only 1.9 per cent.

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