At the Conference on Reviewing Business Performance in the first six months, Tran Minh Binh general director of VietinBank said that by the end of June 2020, the credit balance including foreign branches reached 946.1 trillion dong, an increase of 4.5 trillion dong compared to the beginning of the year, especially significantly improved in June. Capital mobilised from market 1 on June 30, 2020 rose by over 21 trillion dong compared to 2019 while capital structure had a positive shift in the second quarter.
Notably, at the annual general Meeting of Shareholders held on May 23, VietinBank’s leaders said that the credit growth was still negative (down about two percent) compared to the beginning of the year. Thus, VietinBank’s credit in June bounced back sharply.
Credit rebounded in one of the Big Four banks is a good sign because this group accounts for a large proportion in the system. According to the information of the State Bank of Vietnam (SBV) recently, from the end of May, the credit has grown quite strongly again, until June 29, the credit increased by 3.26%. Before that, in March, the credit grew by only 1.13%; April by 0.12%; May by 0.53 percent and by June 29, the increase compared to May was 1.28%.
Although credit growth is recovering, it is still very low compared to the same period in previous years. In particular, recently, at the National Conference on Local government, prime minister Nguyen Xuan Phuc also ordered credit this year to grow at least ten percent. The price control must promote development, stimulate growth, curb inflation but not tighten monetary. The prime minister also asked SBV to direct the continued implementation of effective loan rescheduling, exemption and reduction of interest rates and costs for new and existing loans. Commercial banks must share with businesses during this period.
