MANY of Vietnam’s commercial banks have asked the country’s central bank to expand the credit growth limit as they have almost used up the assigned quota for the whole year.
The State Bank of Vietnam (SBV) assigns an annual credit growth quota for each bank to control lending and thus ensure money supply and inflation control as targeted by the government.
The chairman of Vietcombank Nghiem Xuan Thanh said the central bank had set the bank’s quota at 16 per cent for the whole year, but in the first half of the year it had reached 13 per cent growth. Vietcombank has therefore requested a higher credit growth cap to meet rising capital demands, especially at the end of the year during peak business and spending seasons.
The Vietnam International Commercial Joint Stock Bank (VIB) has also used up almost all its entire credit growth quota of 16 per cent assigned for 2017. Its outstanding loans reached nearly 75.7 trillion dong in the first half, up by 15.7 per cent.
VIB’s general director Han Ngoc Vu said the bank had asked SBV to expand the credit growth limit to provide more scope for lending at the end of the year.
HDBank’s credit growth by the end of June also reached 18 per cent, compared with 20 per cent assigned by the central bank. The bank’s lending growth in the first half was mainly from short-term loans worth 50 trillion dong, accounting for 51.6 per cent of the bank’s total outstanding loans.
Outstanding loans of the Vietnam Prosperity Commercial Joint Stock Bank (VPBank) in the first half also grew by 12 per cent to 162 trillion dong. VPBank has only 4 per cent left from the assigned credit growth limit of 16 per cent to develop lending in the remaining six months of 2017.