Bank sector hopes loans will surge next fiscal year
Bank sector hopes loans will surge next fiscal year
The banking sector plans to issue loans worth more than 6.5 trillion kip (US$812.5 million) in the 2014-15 fiscal year in order to promote small and medium enterprises (SMEs).
The 6.5 trillion kip will cover around 19.7 percent of the total investment plan in 2014-15, which is set at about 33,000 trillion kip (US$4.12 billion), according to the Planning and Investment Ministry's report on the 2014-15 social economic development plan.
The development plan also noted that the 33,000 trillion kip will be about 32 percent of Gross Domestic Product (GDP).
To meet the 6.5 trillion kip plan, the banking sector will have to work hard on promotion policies and management of loans, equity security investments and exchange rates.
Each bank also has to promote the financial institution's service development, fundraising, along with raising and mobilising deposit accounts.
In the 2013-14 fiscal year, the sector planned to lend out around 5.623 trillion kip (US$702.87 million) in loans, the report noted.
By the first six months, the sector had issued loans of 4.155 trillion kip from 38.229 trillion kip in September last year to 42.387 trillion kip in March.
The loan value included loans made by the commercial banks, which increased from 32.352 trillion kip in September to 37.340 trillion kip in March. This covers around 39.7 percent of GDP, which was set at about 91.587 trillion kip (US$11.46 billion).
In the first six months of this fiscal year, deposit accounts rose by 5.52 trillion kip from 35.727 trillion kip in September last year to 41.247 trillion kip (US$5.15 billion) in March.
The 41.248 trillion kip amounted to about 45.5 percent of GDP and also included about 47.59 percent of the Lao currency, kip.
vientiane times
