To reach this target, the banking sector will have to pour more VND600 trillion (roughly US$26.4 billion) into the economy in the last half of this year.
According to the assessment of Ho Chi Minh City Securities Corporation (HSC), the Government expects that this move might help increase GDP growth to 6.7 per cent in 2017 as targeted.
GDP growth in the first 6 months this year is only 5.73 per cent. To reach the target, GDP growth in the last 6 months should reach 7.4 per cent. This is the highest rate since 2007.
In the first half of 2017, the banking system's credit growth increased to 9.06 per cent, reaching 50 per cent of the yearly credit rate (18 per cent). To reach 20 per cent as directed by the PM, credit growth must increase by 11 per cent in the second half of 2017.
Credit growth in many commercial banks is quite steady every month, but there is a possibility of a sharp increase in the last 6 months if the SBV allows the commercial banks to open room for credit.
Only in the first 6 months of 2017, many banks have been running out of credits, which are used for the whole year such as Vietcombank, MB, BIDV ... and requested SBV to open room for credit in early July.
Specifically, in 2017, credit growth rate of Vietcombank is targeted at 16 per cent; however, it reached 13 per cent only in the first six months.
In the first half of 2017, the banking system's credit increased by 9.06%, reaching nearly 50% of the yearly credit rating (18%). To achieve the direction of the Prime Minister, in the second half of the year, credit growth must increase by nearly 11%.
Credit growth in many commercial banks is quite steady in the months, but there is a possibility of a sharp increase in the last 6 months if the SBV allows banks to provide room for credit.
Only in the first 6 months of the year, many banks have been running out of credit facilities for the whole year such as Vietcombank, MB, BIDV ... and requested to have credit room available in early July.
Specifically, in 2017, the SBV assigned a credit growth target of 16% for Vietcombank. In the first six months of this year, credit growth reached 13%.
However, many banks are also concerned that credit growth is not only dependent on the banks but also demand of the market. For example, in the first six months of 2017, Vietinbank's credit growth increased to 4 per cent despite the efforts of this bank.
To increase credit growth in the last six months of 2017, experts advised that it is important to continue cutting administrative procedures, encourage enterprise to invest in and do business, accelerate bad debt treatment ... However, credit growth must also be accompanied by credit quality and macro stability and control of melting capital flows into high-risk sections.