Credit growth in 2020 skyrocketed to 12.13%
This is the figure announced by Deputy Governor Dao Minh Tu at the recent conference summarizing VietinBank's 2020 business activities. Thus, within just the last 10 days of the year, outstanding credit balance of the entire economy has increased sharply by nearly 2 percentage points.
Previously, according to data from the same agency but only calculated as of December 21, 2020,credit growthonly reached 10.14% compared to the end of 2019 and increased by 11.62% over the same period last year.
Mr. Tu also said that the credit institution system has supplied more than 9 million billion VND to the economy, even in 2020, when the Covid-19 epidemic was raging, it also added more than 1 million billion VND to the market.
At the same time, the amount of additional credit in 2020 is still mainly focused by the banking industry on production and business sectors, serving people's lives.
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| Cashiering activities at a bank in Vinh City. Photo by Thu Huyen |
“Although the above growth rate did not reach the expectation of 14% at the beginning of the year, it demonstrated the great efforts of the entire system in the context of the impact of the Covid-19 pandemic. Credit growth slowed down in the first months of the year and gradually recovered at the end of the year,” Mr. Tu emphasized.
On the other hand, the current market has very low interest rates. "For the first time in many years, interest rates are at the level they are now, half of what they were six or seven years ago," Tu said.
In addition, at the restructuring work andbad debt settlementMr. Tu said that the system of credit institutions has maintained stability, scale and operational efficiency continue to be improved; financial capacity, management capacity, and transparency of credit institutions have been gradually improved, approaching international practices.
In more detail, the bad debt ratio of the entire credit institution system has gradually decreased over the years and remained below 2% from the end of 2017 to July 2020, then increased to 2.09% at the end of October 2020 due to the impact of the Covid-19 pandemic.
The bad debt ratio, including debt sold to VAMC that has not been processed and debt that has the potential to become bad debt, is at 4.36%, a sharp decrease from 10.08% at the end of 2016 and exceeding the set target of 5%.
