Some commercial banks expect to get high credit growth limits set by the central bank this year as they have so far met Basel II’s capital safety and risk management standards ahead of schedule.
|Cash is prepared for lending at VPBank’s head office in Hanoi – Photo: VNA|
According to current regulations, the State Bank of Vietnam (SBV) sets a credit growth limit for the entire year for each bank – depending on its health – to ensure the credit growth target of the entire banking system during the year (14 percent, equivalent to the rate of 2018).
Techcombank wants credit growth of 13 percent while the figure for Kien Long Bank is 15 percent.
The credit growth limit is even lower at State-owned commercial banks. Vietinbank set a target of only 6-8 percent due to the pressure to raise the minimum capital adequacy ratio (CAR) while Agribank plans to increase outstanding loans by 11-14 percent, of which 60 percent would be agricultural and rural loans.
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