Credit growth of Khanh Hoa Province in the first eight months of 2016 rose by 12.1% over that in the end of 2015 and by 22.38% year-on-year.
Credit growth of Khanh Hoa Province in the first eight months of 2016 rose by 12.1% over that in the end of 2015 and by 22.38% year-on-year. With this growth, the province’s banking is expected to fulfill the target of 18% - 20% for the whole year. Additionally, the rate of bad debts was only 1.75%, lower than than the under 3% target. Therefore, credit institutions’ s operation was ensured safe.
Increase in total deposits and credit balance
According to Nguyen Hoai Chieu, director of the State Bank – Khanh Hoa Branch, the province’s banking kept good growth in the first eight months of 2016. Banks continued forwarding measures to mobilize capital from idle money of the people in order to ensure lending capital and serve payments. Till end August, mobilized capital till end August was VND60.155 billion, rising by 14.35% over that in the end of 2015 and by 25.48% year-on-year. Credit balance was VND47.555 billion, increasing by 12.1% over that in the end of 2015 and by 22.38% year-on-year. Loans in the eight months were VND62,323 billion, a 42.24% rise year-on-year.
Remarkably, credit was distributed reasonably, aiming to production and business fields, especially fields the Government give priority like agriculture, rural areas, export, small and medium-sized enterprises, etc. Priority credit made up 45.35% of total credit balance, including 14.83% for agricultural and rural development, 23.94% for small and medium-sized enterprises and 6.4% for export. Credit apportion according to industries suited economic tendency of the province and contributed much in the local economic growth.
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Credit in real estates to aim to housing projects
In 2016, Khanh Hoa banking continues developing measures to solve difficulties for enterprises such as cutting lending interest rates and remitting lending interest for production and business. In addition, banks offer many preferential credit programs. Only in the 8 months, banks reduced lending interest rates (maximum 11%/year) for 2.530 borrowers.
Since the bank – enterprise connecting program was launched, banks in the province have disbursed VND22,180 billion with preferential interest rates to support enterprises and individuals to maintain, cover and develop their operation as well as raise capacity of production and business capacity.
According to Director of the State Bank – Khanh Hoa Branch Nguyen Hoai Chieu, to reach the year’s targets, the province’s banking continues carrying out the market stabilizing program and the bank – enterprise connecting program to supply more favorable capital for enterprises. Additionally, action plan of the banking needs to be implemented actively in order to improve business environment, raise competence, and support enterprises. The local banking also has to implement currency and credit policies in accordance with the State Bank’s directions as well as follow local tendencies of socioeconomic development. Credit keeps focusing on production and business, aiming to reduce poverty, building new rural areas, develop collective economy and ensure social security. In the time to come, credit in real estate will aim to housing projects serving real demand for accommodations of local people according to the Government’s policy.
N.D
Translated by T.T
