|A customer enquires about lending procedures at a Vietinbank branch in Can Tho City. About 34 per cent of finance organisations said the business environment was more positive, while nearly 60 per cent said the environment was relatively stable. — VNA/VNS Photo Tran Viet
HA NOI (VNS) — Lenders are optimistic about banking and economic prospects, the latest quarterly survey by the central bank has revealed.
The State Bank of Viet Nam made the announcement on Thursday, citing its poll of local credit institutions and branches of foreign banks that 71.6 per cent of the lenders found the inner conditions were stable and improved this year as compared to last year.
The progress was seen the most in their customer services, risk management ability and credit policies.
About 34 per cent said the business environment was more positive, while nearly 60 per cent said the environment was relatively stable.
National interest and exchange rate policies, supervision of banking operations by authorities, and the demand for products and services of banks were relatively better off.
Most of the credit institutions expected demand for loans from customers to rally strongly this year following a drop in interest rates.
Nearly 78 per cent of the lenders said their business situation was better, with some 46 per cent expecting significant advancement. About 14 per cent affirmed business stability.
They were hoping for an average profit growth rate of 9.73 per cent for the banking system this year, a rise from the 8.89 per cent expectation polled in mid-2015.
Growth of net incomes, which was likely to reach 16 per cent to 20 per cent this year, drove profitability.
Eighty-nine per cent of the credit institutions believed that their bad debt ratios would fall to three per cent or lower this year, meeting the national goal for non-performing loan control.
The expected bad debt ratios averaged 2.39 per cent for the whole credit institution system by end-2015.
Related to liquidity, ninety per cent of the lenders said they were seeing good conditions for both the dong and dollar, and nine per cent said their situation was stable. Only one per cent said their liquidity was not up to expectations.
Overall this year, credit institutions expected deposit growth to average 15.56 per cent, and credit growth to reach 17.6 per cent.
"These expectations show that the credit institutions are quite optimistic about economic recovery and the ability to absorb loans of enterprises, as well as their outlook for production and business in 2015 and 2016," the central bank said in a report. — VNS