For the first nine months of 2021, Hanoi’s credit growth expanded by 9.4% against late 2020, higher than the capital mobilization rate at 7.4%.

A VP Bank branch in Hanoi. Photo: Lam Giang

The Hanoi’s Department of Statistics Office released the figures in its monthly report, noting this shows signs of business recovery as the city is gradually lifting restriction measures.

As of September, total outstanding loans in the city stood at VND2,410 trillion (US$105.4 billion), while over VND4,138 trillion ($181.8 billion) were mobilized by banks during the period.

For the past months, the banking sector has been offering support for people and businesses affected by the pandemic, including restructuring of debt payment schedules, waiving or lowering lending rates.

During the January-September period, banks and credit institutions in Hanoi have restructured the debt payment schedule for 57,700 customers worth VND75 trillion ($3.3 billion); waived and lowered interest rates for 189,000 others for outstanding loans of VND334.8 trillion ($14.7 billion).

From January 23, 2020, to the present, banks have provided new loans at preferential rates worth VND1,159 trillion ($50.7 billion) to over 102,600 customers.

Under the instruction of the State Bank of Vietnam (SBV), banks are working on risk management by establishing an early warning system for customers struggling with debt payments.

The bad debt ratio as of late September is estimated at 1.9% of total outstanding loans.

The rate for capital mobilization is averaged at 0.1-0.2% per annum for call deposits or time deposits with maturity below one month; 3.1-3.8% for time deposits from one to below six months; 3.8-6% from six to below 12 months; and 5.5-6.8% for over 12 months.

Meanwhile, lending rates are set at 5.5-8% per annum for short-term loans; 7.5-9.5% for mid-and long-term periods. For loans in priority fields, the short-term lending rates are set at around 4.5% per annum.