According to the report on the monetary market for the week of March 28 to April 1, SSI Securities Analysis Division (SSI Research) said that the credit scale increased by nearly VND 526,000 billion in the first quarter of 2022, and by more than VND 100,000 billion only in the last 10 days of the month.
Specifically, according to data from the SBV, credit in the first quarter increased by 5.04% compared to the end of 2021, equivalent to an increase of 15.9% over the same period last year.
This securities company raised its target credit growth in 2022 to 14.5% - 15%, reflecting the prospect of economic recovery. This will create significant upward pressure on deposit and lending rates in the near future.
Besides, the interbank interest rate level increased sharply in the beginning of the year due to the pressure of liquidity shortage in the banking system before the Lunar New Year. Liquidity at the moment is relatively stable, however interbank interest rates remain high in the context of credit showing signs of strong recovery.
Last week, the State Bank injected nearly VND 3,800 billion into the banking system through a 14-day term purchase at an interest rate of 2.5%/year.
As a result, the total amount of T-bills in circulation increased to VND 4,500 billion when only VND 727 billion of bills matured. VND interest rates on the interbank market were almost flat. At the end of the week, overnight term interest rate was at 2.19% (down 0.8 percentage points compared to last week) and one-week term interest rate was 2.39.
The Deputy Governor of the the State Bank of Vietnam (SBV) said that this shows that the economy is showing very positive signals, the daily life of people, and production of businesses have also returned to normal.
"Compared to previous years, the above increase is a very high level. At the end of the year, we will continue to study and adjust the credit level to ensure that it is consistent with the objectives of macro-monetary policy as well as inflation control", shared Mr. Tu.
From the beginning of the year, the SBV set a credit growth target of 14% for 2022, but this target can be adjusted at the end of the year depending on the actual situation, it may increase or decrease.
Regarding the extension of the application period of Resolution 42 on bad debt settlement, the Deputy Governor said that for socio-economic development in general, there should be a law related to bad debt handling of the economy instead of only bad debts of the banking industry.
At the same time, the continuation of Resolution 42 as a legal basis to handle those debts will create positive and common benefits for businesses, society and the banking industry in dealing with bad debts. Therefore, the Government has approved and submitted to the Standing Committee to carry out the procedures as well as study to allow the extension of Resolution 42 in the coming time.
According to the SBV's data, since 2017, Resolution 42 issued by the National Assembly has had a very positive impact. The amount of bad debt that has been handled and settled in the past years through Resolution 42 is VND 380,000 billion.
Compiled by VietnamCredit