According to the GSO, credit growth in the banking system increased 2.81% in Q1 2017, much higher than the same period in the past five years (Q1 2012: – 2.13%, Q1 2013: +0.03%, Q1 2014: – 0.57%, Q1 2015: +1.25%, Q1 2016: +1.54%). Deposit growth and credit growth by sector have not been released yet. This impressive credit growth rate was driven by rising demand for capital and stable interest rates. Commercial banks have been pushing loans to individual borrowers, of which homebuyers took the spotlight. Also, since last year, the SBV has directed commercial banks to boost lending at the start of the year instead of rushing in last quarter to achieve the target.
Source: VCSC and GSO
Photo: CBR Investment AG