System-wide credit balance expected to increase by 3.8% in Q2/2024
- Business
- 17:19 11/04/2024
DNHN - The system-wide credit balance is expected to increase in Q2/2024 and the whole of 2024, although this forecast has been revised down from previous estimates.
Credit institutions (CIs) have announced the results of a survey on business trends in Q2/2024, conducted by the State Bank of Vietnam (SBV), providing an overview of the banking system’s operations during this period.
In the first three months of the year, customer demand for loans has not shown any signs of improvement and has even been lower than previous expectations. However, businesses have maintained a higher level of demand for loans than individuals and other CIs. Meanwhile, demand for deposits and use of payment services remains low compared to the previous quarter.
The system-wide credit balance is expected to increase in Q2/2024 and the whole of 2024, although this forecast has been revised down from previous estimates. However, the ratio of bad debt to credit balance increased slightly in Q1/2024 but is expected to decrease in Q2/2024.
The interest rate level for mobilisation and lending is expected to remain low in Q2/2024 and 2024, with no significant change compared to the previous quarter. The forecast for system-wide capital mobilisation also shows growth, although at a lower level than previous estimates.
Meanwhile, the overall business situation and pre-tax profit of the banking system in Q1/2024 have not met expectations due to the impact of seasonal factors. However, CIs remain optimistic about their prospects in Q2/2024, although they still warn of potential risks and are cautious when making expectations for the whole of 2024.
Overall, despite positive signs such as the prospect of improving demand for loans and a decrease in the bad debt ratio, there are still challenges to be faced, especially in stimulating demand for deposits and payments. CIs need to continue to face the fluctuations and carefully consider adjustment measures to maintain stability and sustainable development in the coming period.
P.V
Related news
- Vietnam Foodexpo to host largest edition with over 500 businesses
- Vietnam seeks innovation-led growth amid shifting global economic landscape
- Vietnam PM proposes four initiatives to drive economic growth
- Autumn Economic Forum seeks new growth engines in AI era
- Vietnam Demands Results from Diplomacy
- HCMC pushes open innovation towards commercial gains
- Vietnam Emerges as a Standout Destination for Autumn Travel
- 2026 Autumn Economic Forum promoted on Seoul screens
- Margin lending drives HSC earnings as brokerage revenue tumbles
- Bepharco appoints 2002-born executive as CEO
- Vietnam financial center eyes November 2026 launch
- Vietnam targets 20 internationally certified hospitals in medical tourism push
- Vietnam sets sights on double-digit growth as APEC 2027 preparations gather pace
- Vietnam businesses face global test: reform at home, earn trust abroad
- Vietnam firms warned: transform within, build trust abroad or fall behind
- VCBC Chairman Steve Bui: Incentives have run their course — Vietnam enters an institutional race to attract the next generation of FDI
- Vietnamese Journalism in the Age of AI: How can reporters survive in the profession?
- Dr. Samuel Feldberg warns of risks that could reshape the global economic order and shares strategic advice for Vietnamese businesses
- VINASME organizes training program on risk control for sustainable business development amid uncertainty
- Vietnam’s International Financial Center looks beyond tax incentives to compete
Đọc thêm Business
Vietnam seeks innovation-led growth amid shifting global economic landscape
Prime Minister of Vietnam Le Minh Hung has outlined Vietnam's strategy to strengthen economic resilience, accelerate innovation and enhance the competitiveness of domestic enterprises as global supply chains undergo significant restructuring.
Vietnam PM proposes four initiatives to drive economic growth
Prime Minister Le Minh Hung has proposed four areas of cooperation with international partners to boost innovation, develop high-tech talent, test emerging technologies and attract long-term investment.
Sacombank names banking veteran Nguyen Xuan Ai Quoc as deputy chief — with profits tipped to surge 111%
The seasoned financier, a son of late film star Tham Thuy Hang, joins as the Vietnamese lender targets rapid growth and a major debt recovery.
CME Solar Partners with Uni-President Vietnam to Deploy a 6,601 kWp Rooftop Solar Project
The 6,601 kWp rooftop solar project is expected to supply 8,656 MWh of clean electricity per year to Uni-President Vietnam, helping the company optimize energy costs and reduce CO₂ emissions.
Vietnam Demands Results from Diplomacy
Top leaders of Vietnam order international pledges turned into jobs, productive capacity and markets—with institutions held to account for delivery.
HCMC pushes open innovation towards commercial gains
Ho Chi Minh City is seeking to turn research and technology partnerships into measurable gains for businesses as it builds a next-generation industrial ecosystem.
2026 Autumn Economic Forum promoted on Seoul screens
Ho Chi Minh City (HCMC) is taking Vietnamese economic ambitions abroad, using one of Seoul’s most prominent commercial districts to court investors and build international attention for the flagship autumn economic forum.
Khanh Hoa targets 23.7 million tourists in 2026
Khanh Hoa expects more than 23.7 million visitors and VND80.2 trillion in tourism revenue in 2026, increases of 44.8% and 19.7% year-on-year, respectively.
Vietnamese firms face Halal, logistics hurdles in UAE push
Vietnamese businesses seeking to enter the UAE and wider Middle East need stronger preparation in Halal compliance, market research and partner networks as logistics and information gaps weigh on exports, experts said.
Vietnam financial center eyes November 2026 launch
Vietnam is preparing to launch the first transactions at its International Financial Center in November 2026, with authorities reviewing eligible products and removing regulatory bottlenecks.