A number of commercial banks have been allowed to lift their credit growth target to expand their operations.
|Vietnam's credit institutions were granted their wish for improved room for credit growth |
MB has been allowed to extend its credit growth target from 10.5 to 15 per cent. VPBank, Vietcombank, Sacombank, and Techcombank were also permitted to raise their credit room to 12.1, 14, 10.5, and 17 per cent, respectively.
In addition, the credit limit of Eximbank will be increased from 6.5 to 10 per cent, while VIB from 8.5 to 14.1 per cent. TPBank will be able to raise its credit target to 17.4 per cent.
At a July 12 meeting between the Vietnam Banks Association and the 16 largest banks in the country, banks expressed their desire for the State Bank of Vietnam (SBV) to grant additional credit growth target in the latter half of this year.
The SBV also signalled that it would ease credit policy for commercial banks, especially giving higher credit growth ceilings for some lenders with ample financial buffers and higher customer lending demand.
Previously, lacklustre economic outlook has impeded credit demand – that is why the SBV took a rather cautious approach with credit growth quotas.
Moreover, the SBV required commercial banks to pay attention to safety ratios, reduce lending interest rates to assist affected customers and prioritise areas like manufacturing while limiting capital into risky sectors such as real estate and the stock market.
For build-operate-transfer (BOT) and build-transfer (BT) projects, credit institutions must balance their capital flow and use loans for medium- and long-term projects to limit liquidity risks and continue to strictly comply with the instructions of the SBV.