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Monday, June 24, 2024

VCCI says rules needed for setting credit growth quotas

By T. Dao

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HCMC – The Vietnam Chamber of Commerce and Industry (VCCI) has proposed policymakers provide regulations for the setting of credit growth quotas.

Article 59 of the 2010 law on the State Bank of Vietnam (SBV) states that depending on the nature and degree of risks, the SBV can decide on a certain credit growth limit for banks subject to inspection and supervision in order to ensure safety for the banking system.

However, the article is not clear, so commercial banks might not be equally treated when it comes to credit quota allocation, VCCI said. The article does not point out whether the regulation applies to all banks or a few that have high exposure to risks and that breach the law.

The number of enterprises that could gain access to bank loans has declined over the years, with 49.7% in 2017 and 35.41% in 2021, even though the business community has huge demand for financing as the Vietnamese economy is still growing robustly, the Vietnam News Agency reported, citing data from VCCI’s surveys.

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