According to the SBV, as of December 22, credit increased by 12.68 percent compared to the end of last year. Notably, the credit growth had increased significantly for the past few weeks as until November 25, the rise was only 10.1 percent.
This means trillions of Vietnamese dong of bank loans had been poured into production and business in the past few weeks when the country has gradually reopened after a long time under social distancing.
To meet rising capital demands at year-end, SBV last month extended credit growth quotas to 11 banks. TPBank had the highest rising rate of 6 percent, a jump from from 17.4 percent to 23.4 percent, thanks to its strong capital adequacy ratio (CAR) according to Basel II standards and a diverse investment portfolio.
Other banks, which were allowed to expand their credit room by roughly 4-5 percent last month, included Techcombank (from 17.1 percent to 22.1 percent), MSB (from 16 percent to 22 percent) and MB (from 15 percent to 21 percent).
Experts from the Vietcombank Securities Company (VCBS) forecast the SBV in 2022 will grant long-term credit growth quotas for some banks instead of announcing it every quarter as currently.
Currently, the SBV periodically assesses and modifies the credit growth quota for each bank based on its CAR, financial strength, risk governance and operational status.
Besides, banks that do not focus lending on hazardous and vulnerable businesses and offer low lending interest rates will get the SBV priority in having higher credit growth quotas.
According to the SBV’s Deputy Governor Dao Minh Tu, the SBV will increase the credit growth target for 2022 to around 14 percent against 12 percent in 2021. However, the rate might be adjusted flexibly in its operational approach.
The Government has so far also required the whole banking industry to implement effective credit policies to support the development of production and business and the recovery of the economy after the pandemic.
Besides commitments to increase capital for priority industries and sectors, Tu noted the banking system would apply stringent control over at-risk businesses, particularly in keeping a firm hand over their real estate assets, risky corporate bonds and their stocks.
However, he noted, the SBV would continue to prioritise and provide favourable conditions for the residential real estate sector to address genuine consumer demands. Besides, the capital flows for the healthy and stable development of the securities market would also be encouraged./.
Source: vietnamplus