Credit growth should be kept at 23pct
The Government should keep the credit growth cap at about 23% as targeted in early 2011, mooted member of the National Assembly’s Standing Committee for Finance and Budget at the 41th NA’s meeting on June 30.
The move to cut credit growth to low 20% in 2011 from 31% in 2010 may help fight inflation, yet will hurt the economy, said Phung Quoc Hien, Chairman of the Committee for Finance and Budget.
Hien didn’t add details to back up for his suggestion, yet pressed that “credit growth should be maintained at reasonable and stable level and credit might be tightened but should focus on certain borrowers”.
The Standing Committee for Finance and Budget also proposed Government to take more flexible monetary policies, exploit the market-oriented regimes, reduce administrative measures which may be harmful to financial, monetary market, and hinder operations of banks, organizations and individuals.
Earlier, talking with the press, the State Bank of Vietnam (SBV)’s Governor confirmed the determination to keep the credit growth target at 20% in line with Resolution 11 after some people complained that the cap is too rigid. – Vietbiz24
Tags: Vietnam banking industry, Vietnam credit growth, Vietnam finance, Vietnam financial