At the press conference held on April 11 by the State Bank of Vietnam (SBV), the central bank’s governor Nguyen Van Binh said that credit in the first three months of this year fell only 0.4%, much lower than report of the National Financial Supervisory Commission (NFSC), at the fall of 2.13%.
Particularly, Binh said that, in February, credit of the economy decreased 0.07%, thus, basically debt recovery and lending activities has gained a balance. In March, credit of banks increased to over 1%, which means that credit has started growing again from this month. As of March 31, credit growth of the entire banking system saw a fall of over 1%.
However, according to the central bank’s actual analysis, the figure is actually slightly different. By the end of Q4/2011, some credit institutions posted virtual credit growth with an aim to have high credit growth for 2012. So by the end of December 2011, banks posted high credit growth but then it fell sharply in January / 2012.
If excluding this element, in Jan-Mar, credit for the economy decreased only 0.4%. This is lower than that of previous years but it is not at the level of concern, the governor said.
According to the governor, many sources said that with the current situation, credit growth of the whole banking system this year would not reach the target of 15-17%, resulting in failure in ensuring economic growth target of 6% this year. However, the governor said that the credit growth in Mar was 1%, if credit growth is 1.5-2% per month for the rest of this year, credit growth target in 2012 is completely achieved.