Credit growth cap of 20% shouldn’t be applied to all banks
The State Bank of Vietnam (SBV) shouldn’t apply the credit growth cap of 20% to all local lenders, citing that some small banks almost fulfilled the credit growth target while others still have room to boost up lending for production sectors.
The State Bank of Vietnam (SBV) shouldn’t apply the credit growth cap of 20% to all local lenders, citing that some small banks almost fulfilled the credit growth target while others still have room to boost up lending for production sectors, the online newspaper Tuoi Tre reported, citing experts’ opinion.
The monetary policies should be market-oriented, said Pham Huy Hung, Vietinbank’s CEO, adding that the SBV should apply the credit growth cap of 20% for the whole banking system but still give flexibility for specific banks to boost up outstanding loans up on their deposit growth.
Hung said Vietinbank will propose the SBV to extend credit growth cap for the listed lender to 30% in 2011, pressing that total extended room of 10% will be disbursed to manufacturing sectors and important projects.
Meanwhile, some lenders have struggled to expand credits due to their difficulties in attracting deposits, local media reported.
The flexible credit growth target will be very effective in developing the economy, create more jobs, enhance social welfares, especially amidst slowing down inflation and the Government’s adjustment of inflation target to 15% in 2011, a big bank’s general director said.
He suggested the SBV to create favorable conditions for local lenders to have an abundant and cheap source of capital which in turn will help bring down interest rates. – Stoxplus.com
Tags: Vietnam banking industry, Vietnam credit growth, Vietnam finance, Vietnam financial