The State Bank of Vietnam (SBV) has officially adjusted the credit room for four banks in a bid to support weak credit institutions according to the government's policy.
VPBank was reportedly having the highest credit limit adjusted by the SBV. According to the banks' feedback, VPBank has the largest modification with an adjusted limit of nearly VND45 trillion ($1.88 billion).
MB ranks second in the list with an adjusted limit of over VND20 trillion ($837.64 million). HDBank came third with a credit limit of approximately VND11 trillion ($460.7 million).
In addition, SBV also continues to adjust the credit room of Vietcombank. However, the bank's adjusted limit was less than VND9 trillion ($376.8 million). It is known that four banks have received official documents to adjust the credit room from the management agency.
The banks will participate in the credit institution restructuring programme with a view to restructuring the system of credit institutions. VPBank is tasked to assist GPBank while MB is in charge of supporting Ocean Bank. HDBank is assigned to aid Dong A Bank, and Vietcombank will support CBBank.
The credit institution restructuring programme will contribute to the healthy and stable development of the banking system and the economy. Accordingly, Vietnam will have two or three commercial banks joining the top 100 powerful commercial banks in Asia by 2025, according to the prime minister's decision No.689/QD-TTg.
The scheme is expected to create a thorough change in the restructuring of the credit institution system associated with non-performing loan settlements.
It sets forth the target that by 2025, the total number of credit institutions will be reduced, weak banks will be permitted to terminate their operation, no more banks will fall into the group of weak ones, and the credit institution system will develop in a more sustainable manner.
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By Thanh Van