State Bank 're-divides' credit room

Uneven system credit growth, the State Bank decided to reallocate growth quota from surplus banks to deficient banks.

This notice was sent by the State Bank to credit institutions yesterday (November 29).

By July, the management agency had allocated credit limits with a total growth of 14.5%. However, over the past 11 months, economic growth has encountered difficulties, capital absorption and credit demand have been weak, so by November 22, the credit growth of the entire system had only reached 8.21%. "Credit growth is uneven, some credit institutions have quite high growth, some have low growth, even negative growth," the State Bank report said.

Accordingly, to meet the requirements of boosting credit growth, the State Bank has adjusted this target from underutilized banks to banks that need to continue to expand. Overall credit growth in 2023 remains at the target set at the beginning of the year (14.5%).

The reallocation is based on year-to-date credit growth and ranking. Banks with growth reaching 80% will have their credit limits increased based on their 2022 ranking, with priority given to institutions focusing on credit in priority sectors and lending rates lowered to low levels.

"The addition of this limit is the initiative of the State Bank and credit institutions do not need to request or ask for the addition," the State Bank said.

By the end of the third quarter, the overall credit picture of the banking system also showed differentiation. In the group of state-owned banks, according to individual financial reports, credit growth of banks was at single digits. Vietcombank in the first 9 months of the year had credit growth of about 4%, BIDV and VietinBank at 9%.

Meanwhile, private banks have seen significantly higher growth. Parent bank VPBank had outstanding loans at the end of the third quarter of more than VND454,000 billion, up 26% compared to the beginning of the year. MB's customer loans reached more than VND500,000 billion, up 16%. Some other banks such as Techcombank, LPB, HDBank orSHB also increased credit by more than 10%.

According to the State Bank, banks are still required to provide safe and healthy credit, support businesses, and ensure credit growth is consistent with risk management capacity. The management agency also said it will "continue to closely monitor market developments to have timely and appropriate management solutions, proactively supplement limits, and be ready to support liquidity."

Minh Son

Source link