Local banks gear up to cut outstanding loans

As of April 30, as many as 9 joint stock banks cut outstanding loans to ensure their credit growth at below of 20% in 2010 as requested by the State Bank of Vietnam (SBV), the state-run online newspaper VnEconomy reported June 22.

OceanBank trimmed its dong loans down by VND 1.3 trillion in April, down 8.68% from March ; Vietcombank down VND334 billion and $300 million, First Commercial Bank down VND 56 billion and $270,000, Nam A Bank down VND 100 billion, Sacombank down VND 262 billion and $26.4 million , Viet A Bank down VND 126 trillion , GPBank down $8.8 million, SeABank down $6 million, the state media cited.

Noticeably, Gia Dinh Bank and Southern commercial bank’s dollar loans fell continously in the last 4 months, it added.

As of April 30, outstanding banks of Vietnam joint stock banks were estimated at VND 1.300 trillion, making up 56.3% those of the whole banking system and up 8.14% from end of 2010 compared to 1.72% credit growth of the system.

The SBV will strictly penalize any bank whose outstanding banks rose over 20%, said Nguyen Van Giau, the SBV’s Governor. – Stoxplus.com

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial

Posted by VBN on Jun 22 2011. Filed under Banking-Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry