SBV asks commercial banks to carry out credit growth quota as assigned

SBV asks commercial banks to carry out credit growth quota as assigned

The State Bank of Vietnam (SBV) has recently issued a document requiring commercial banks to continue to carry out credit growth quota as assigned. If credit institutions have plan for credit growth exceeding the quota, they must submit the plan to the central bank for consideration, said the local newswire Tuoi Tre (Youth).

Earlier, according to the Vietnam Investment Review on June 27, a senior leader of the central bank said that maybe the central bank will ease credit growth limit of 17 percent per year for banks with good and efficient lending activities.

The permission for banks to have credit growth exceeding the target occurs in the context of very low credit growth since early this year so far.

Till June 30, the credit growth of the whole banking system was only 0.76 percent from the end of 2011, much lower than the target set by the central bank at 15-17%.

In HCM City, the total outstanding loans as of June 30 decreased 0.04 percent from the end of 2011. Therefore, the newswire Tuoi Tre (Youth) cited sources from many banks as saying that if being allowed to increase credit, only few banks will ask to have higher credit growth quota as though banks are trying to lend, they will be unlikely to use up this assigned target.

Earlier, under the Directive No 01 issued on February 13, 2012 by the central bank, SBV assigned credit growth limit for four groups of credit institutions, including Group 1 (at 17%), Group 2 (at 15%), Group 3 (at 8%) and Group 4 (at 0%).

After six months of implementing, the central bank will consider and assign credit growth quota for each credit institution to conform to changes in banking, credit and monetary operations.

tuoitre