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Saturday, October 8, 2022

Several banks get extra room to lend

By Van Phong

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HCMC – The State Bank of Vietnam (SBV) on September 7 raised credit growth quotas for several banks, paving the way for these lenders to make new loans for clients.

Four banks with State stakes, including Vietcombank and Agribank, and some joint-stock banks are given higher credit growth limits, meaning they can accelerate lending in the rest of the year.

Vietcombank, whose credit growth quota was initially set at 15% for 2022, now has an additional 2.7 percentage points, so it can boost its credit growth to a maximum of 17.7%. In the year to date, this bank’s gredit has already expanded 14.7%, the local media reported.

Agribank is given an additional quota of three percentage points, raising its credit growth limit of this year from 7% to 10%.

The central bank said that banks that closely followed SBV’s orientations of monetary policy management and banking operations and participated in the handling of poor-performing commercial banks are now rewarded with higher credit growth quotas. 

According to the SBV, keeping credit growth under limits in line with Circular 52/2018 can help curb inflation, stabilize the monetary market and encourage banks to improve their business governance, thereby strengthening the banking sector. 

To achieve the full-year target of economic growth at some 6% and control inflation at 4%, the SBV said it would keep the credit growth target of this year at 14% and make adjustments based on market conditions.

In the year to August 26, loans in the banking system had grown 9.91%, well above the figures in the same period of previous years.

The SBV said it would continue to carry out the contents of Government Directive 01 and make it easier for individual and corporate clients to access loans.

Macroeconomic stabilization and inflation control are high on the agenda at the moment, said SBV deputy governor Dao Minh Tu at a press briefing on September 6.

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