Vietnam Daily News

Vietnam Central Bank to Set Credit Growth Rates for Different Bank Group

Written by Dailynews.vn Thursday, 15 December 2011 16:44

The State Bank of Vietnam (SBV) intended to prepare a credit growth plan, which set out different credit growth targets for different group of credit institutions on the basis of performance assessment.

The State Bank of Vietnam (SBV) intended to prepare a credit growth plan, which set out different credit growth targets for different group of credit institutions on the basis of performance assessment, the local online newspaper Dau Tu Chung Khoan quoted Le Minh Hung, deputy Governor of the SBV, as saying.

"In mid-December, the central bank will hold a meeting with local credit institutions on 2012 credit growth targets," Hung added.

Trinh Van Tuan, CEO of Orient Commercial Bank, suggested that the central bank should specify criteria to assess banks. "If the central bank considers bank sizes to set credit growth, credit growth rates should be 10 percent for weak lenders (irrespective of sizes), 25 percent-30 percent for medium and small banks, 17 percent for large and strong banks", an unnamed bank CEO suggested.

It is likely for the credit growth to be squeezed in the first quarter of 2012, commented Nguyen Hong Long, director of Structured Products and Business Centre (Techcombank).

Credit growth rate of the whole banking system as of November 21, 2011 exceeded 10 percent and was expected to arrive at 12-13 percent at year end, said Nguyen Van Binh, Governor of the State Bank of Vietnam, adding that if all credit-equivalent investments were taken into account, credit growth of the entire banking sector as of December 31 may reach 15 percent.

Source: www.intellasia.net/news/articles/finance/111350820.shtml