Hanoi (VNA) - Consumer lending by the end of May rose 29.7 percent against theend of 2016, the National Financial Supervisory Commission (NFSC) has said.

Of the total consumer loans, home renovation loans and homepurchase loans accounted for 52.8 percent, compared with 49 percent in the endof 2016.

As per the NFSC’s report, credit growth of the entire bankingsystem was positive, reaching 6.8 percent in May, compared to 5.7 percent inthe same period in 2016.

In particular, the lending terms have changed towards fewermedium-term and long-term loans. The proportion of short-term loans wasestimated at 45.4 percent, against 44.9 percent in late 2016. Meanwhile, theproportion of medium- and long-term loans fell to 54.6 percent, against 55.1 percent.

Lending in Vietnamese dong accounted for nearly92 percent, while lending in foreign currencies fell slightly to 8.2 percent ofthe total lending from 8.4 percent in late 2016.

At the end of the first quarter of 2017, the banking sectorcontinued to be the economy’s main source of capital supply, accounting fornearly 60 percent of the total capital supplied via the financial market.

The NFSC reported that as of now, liquidity troubles have declined.The ratio of loan to deposit (LDR) of the entire banking system was 87 percentas of May, slightly lower than earlier. Inter-bank interest rates have alsofallen to 4-4.2 percent per year from the previous 5 percent. The StateBank of Vietnam withdrew 28 trillion VND (1.22 billion USD) in May.

According to the NFSC, the positive liquidity status is because ofa rapid rise in State Treasury deposits as budget disbursement remains slow. Asof late April, State Treasury deposits reached 122 trillion VND, up 28.4 percentagainst the beginning of the year.-VNA