A customer at an MB branch (Photo: vncb.vn)Under thecurrent regulations, the State Bank of Vietnam (SBV) sets credit growth limitsfor each commercial bank at the beginning of the year depending on the bank’shealth, including capital adequacy ratio, financial strength, risk governanceand operational status. This was done to control credit growth of the entirebanking system and to ensure money supply and inflation control as targeted bythe Government.
Chairman ofVietcombank Pham Quang Dung said Vietcombank’s credit growth reached 8.8 percentby April 29 while Vietcombank was granted a 10 percent credit growth quota.
At MilitaryBank (MB), CEO Luu Trung Thai also revealed that the bank has beenassigned a credit growth target of 15 percent so he expected the quota to befurther extended in the near future.
According toBao Viet Securities (BVSC), MB has almost reached the assigned credit growthquota as the bank’s credit growth by the end of Q1 2022 reached 14.8 percent.MB therefore is waiting for a SBV’s approval of a higher credit quota.
Meanwhile,ACB's officials said they had applied to the SBV for an additional credit quotaand hoped to have it to be approved by the end of June or at the beginning ofJuly this year to have more room for lending.
By the endof Q1 2022, ACB's total outstanding loans reached 380 trillion VND, up 5 percentcompared to the beginning of 2022. In the first four months of the year,the bank's credit increased 8 percent compared to the beginning of this year,mainly from short-term lending to strategic customer segments includingindividuals, and small- and medium-sized enterprises.
Expertsforecast credit growth in 2022 will be higher than last year when the economybegins to recover after the pandemic. Therefore, banks will also be grantedhigher credit quota to facilitate loan expansion.
Especially,they said, banks such as Vietcombank and MB, which participate in restructuringweak credit institutions according to the Government’s directions, will havethe opportunity to get the highest credit quota.
BVSCforecast MB may be able to expand its credit growth room to 30-35 percent whilethe rise for Vietcombank will be 16 percent.
According tothe SBV, credit growth of the entire banking system at the end of Q1 2022reached 5.04 percent, 2.3 times higher than the same period last year.
SBV DeputyGovernor Dao Minh Tu said the surge showed the economy has positive signs andthe daily life, production and business of people and firms have also returnedto normal thanks to the Government's effective measures against the pandemic.
The creditgrowth target of the entire banking system in 2022 that the SBV set at thebeginning of this year was 14 percent. However, the SBV said the target can beadjusted up or down at the end of the year, depending on the actual situation,to ensure it meet targets of macro-monetary policies and inflation control./.
VNA
