In 2015, banking in Khanh Hoa Province reached a credit growth rate of 26.5%, far higher than that in previous years and the figure of the country this year...
In 2015, banking in Khanh Hoa Province reached a credit growth rate of 26.5%, far higher than that in previous years and the figure of the country this year.
According to Doan Vinh Tuong, director of the State Bank – Khanh Hoa Branch, credit grew well right from the beginning of the year 2015 and kept impetus during the year. Specifically, middle and long-term credit made rapid growth; foreign currency credit saw a drop; credit structure was distributed reasonably, towards production and business.
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In end 2015, total credit balance in the province hit VND40,740 billion, increasing by 26.5% over the beginning of the year. Credit balance of middle and long terms rose by 35.47%, far higher than 16.37% of the increase in short terms. That showed positive and stable growth prospect of the economy, secure investment of enterprises in production and business. Credit balance in VND rose by 31.93%; credit balance in foreign currency decreased by 7.72%. Credit balance has been distributed reasonably, focusing on production and trade, especially in key and preferential fields of the province. Credit structure went with the province’s economic development tendency. Specifically, tourism – service – trade made up 58.2%, industry – construction: 33.1%; agriculture – forestry – fishery: 8.7%.
The fast growth of credit still ensured to match with capital absorption of the economy as well as its safety. Bad debt rate was kept at about 2%, far lower than the figure of under 3% targeted.
According to the State Bank – Khanh Hoa Branch, interest rates decreased by 0.2% - 0.5% in general, which supported effectively for production and trade and kept stability for currency and foreign exchange market. Deposit interest rates were slashed by 0.2% - 0.5%/year, mainly in over-6-month terms, partly reducing lending interest rates in middle and long terms. Lending interest rates of credit institutions made decrease of 0.3% - 0.5%/year.
In 2016, the State Bank – Khanh Hoa Branch aims to keep interest rates stable like now. If possible, commercial banks may slash interest rates more 0.25% - 0.5%.
N.D
Translated by T.T
