How did the debt for lending increase for many banks in Q4/2023?

According to analysts, the strong acceleration of credit growth at the end of 2023 was contributed significantly by the solutions to difficulties and credit stimulus policies of the Government, State Bank as well as the banks themselves.

According to the State Bank’s data, the credit growth of the economy reached 13.71% by the end of December 2023, corresponding to the additional credit debt scale of over 1,634 trillion VND in 2023. This growth rate is slightly lower than in previous years and almost reaches the SBV’s target set at the beginning of the year. Previously, SBV’s data showed that credit growth only reached 6.96% by the end of September.

Therefore, in Q4, credit has increased by 6.75%, equivalent to a scale of nearly 805 trillion VND, accounting for nearly half of the total growth in 2023. This is the highest credit growth rate in many years and the highest scale in history if considering the size.

The data from the Q4 financial reports of banks also shows that many banks have recorded very high credit growth rates in the last three months of 2023.

For example, Vietcombank’s lending growth rate at the end of Q3/2023 was only 3.9%, but recent published data shows that Vietcombank’s credit debt by the end of 2023 has increased by 10.6% compared to the beginning of the year.

Or like BIDV, for example. In the first 9 months of 2023, the new lending debt increased by 8.6%, but by the end of the year, credit recorded a growth rate of nearly 16.7%. At VietinBank, these two numbers are 8.7% and 15%, respectively.

In the private banking sector, MB recorded a credit growth rate of up to 28.8% for its parent bank by the end of 2023, much higher than the growth rate of about 14% in September. Similarly, Techcombank’s lending debt growth in 2023 also reached nearly 23.3%, nearly double the growth rate of 13.1% at the end of September.

Especially, the new financial report recently published by TPBank shows that the bank’s customer lending debt has increased by over 27.5% in 2023, far exceeding the industry’s average growth rate and much higher than the growth rate of 11.8% recorded at the end of September.

According to TPBank’s leadership, the strong increase in lending debt comes from breakthroughs in lending methods and technology applications that support customers in all segments. TPBank’s diverse lending packages are well-received by the market through linkage channels, providing customers with a seamless and convenient borrowing experience. The feature of lending through LiveBank has improved flexibility and utility, helping to optimize the customer experience. TPBank is also ready to accompany customers to overcome difficulties by continuously updating preferential interest rate policies, implementing measures to reduce interest rates and fees to support businesses and individuals on a scale of tens of trillions of VND.

According to analysts, in addition to seasonal factors, the strong acceleration of credit growth at the end of 2023 was contributed significantly by the solutions to difficulties and credit stimulus policies of the Government, State Bank as well as the banks themselves.

In evaluating the factors that led to strong credit growth in December and Q4, VDSC believes that the cause comes from the efforts of the banks themselves and the regulation of the State Bank.

According to this, banks have been trying to push credit growth in the last quarter to maximize their credit room for 2023 and create favorable conditions for credit room in 2024. Meanwhile, the State Bank has been flexible in reallocating credit room, allowing banks to proactively adjust their lending debts if the growth rate as of November 29 has reached at least 80% of the total credit growth allocated for the entire year of 2023.

Earlier, the leaders of the State Bank also evaluated the 13.71% credit growth rate in 2023 as very positive and the result of resolute guidance from the Prime Minister and the banking industry throughout the past year, especially in the final stage of the year.

Specifically, many solutions, policies, and credit programs have been implemented in a comprehensive, resolute manner by the State Bank, focusing all resources to ensure sufficient capital supply for the economy, promote economic growth, support enterprises and people to overcome difficulties, and restore production and business. In particular, there is a focus on improving the legal framework for lending, simplifying procedures, reducing lending documents, and promoting bank-business connections nationwide. There has also been an increase in specific credit programs and products with preferential conditions, creating more favorable conditions for people and businesses to access bank credit.

At the same time, many credit programs have been implemented to effectively implement social policies, contributing to the successful implementation of three national target programs on sustainable poverty reduction, building new rural areas, and developing the socio-economy of ethnic minority and mountainous areas.