According to the National Financial Supervisory Commission (NFSC), right in January, the capital mobilised from economic organisations and individuals increased 0.5 percent from the end of 2017. This is quite surprising because the capital mobilisation often has negative growth in the first month of the year. In the same period of January 2016 and 2017, the capital mobilisation decreased 0.8 percent and 1.3 percent respectively.
The capital mobilisation increased mainly in domestic currency (up 0.6 percent). Meanwhile, the capital mobilisation in foreign currency decreased 0.3 percent. The domestic currency is currently accounting for 90.3 percent of the total mobilised capital.
After a year of thoroughly grasping the policy on “credit increase right from the beginning of the year”, credit in January 2018 improved at lower level than the years from 2016 backwards.
NFSC’s data shows that in January 2018, the total credit (including customer loans and investment in corporate bonds) increased about 0.9 percent compared to the end of 2017, while improving 1.6 percent in the same period of 2017 and 0.8 percent in 2016. In February 2018, credit was estimated to inch up about one percent from the end of 2017.
The credit structure by term, the proportion of medium and long-term credit continued to decrease. The proportion of medium and long-term credit fell from 55.2 percent in January 2017 to 53 percent. Noticeably, based on types of money, the proportion of credit in foreign currency went down. Credit in domestic currency improved from 91.6 percent to 92 percent of the total credit. Credit in foreign currency only accounted for eight percent of the total credit.
Meanwhile, the credit structure by economic sectors in January 2018 was less volatile compared to the end of 2017. Meanwhile, loans for industrial sector and construction sector reckoned for about 22.1 percent. Loans for hired labour, production of physical products and consumption service of households made up 16.5 percent. Loans to agriculture, forestry and fishery sectors represented about eight percent.
The proportion of loans for real estate business and construction increased again to about 16.1 percent from 15.8 percent at the end of 201 but was still lower than the end of 2016 (17.1 percent). Meanwhile, consumer loans continued to increase proportion out of the total oustanding loans, from 12.3 percent at the end of 2016 and 18 percent at the end of 2018 to about 18.3 percent after one month.
Assessing the system’s liquidity in the first month of the year, NSFC said the interbank interest rates have increased again. The credit to deposit ratio swelled from 85.5 percent in 2016 to about 88 percent at the end of February 2017.
However, the system’s liquidity was still largely supported from the State Bank’s purchase of a large amount of foreign currency and net supply of about 70 trillion dong in the first two months of 2018.
According to the report of this agency, the NPL ratio was about 2.5 percent, but bad debts still focused mainly on ailing credit organisations which were subject to restructuring. Bad debts were hidden in all restructured debts, corporate bonds and external receivables. In addition, some credit organisations acquired the bad debt sold to VAMC to self-handle.
Earlier, NFSC forecasted that bad debt is more likely to be settled more quickly and thoroughly thanks to support mechanism from the Resolution No.42. This is also one of the support factors for the interest rate reduction at banks.
