Credit institutions in which the State controls over 50% of charter capital will now be subject to assessment, according to a circular drafted by the Ministry of Finance.
The State Bank of Vietnam (SBV) has approved the extension of credit growth limits for many commercial banks to support the country’s economic growth.
A high credit growth target of 21 per cent could be achieved this year, but with it come risks on credit quality and the potential for unevenly distributed loans, privileging large private firms instead of smaller ones.
Easing the lending interest rate further by 0.5% and obtaining a high credit growth rate of 21-22% as instructed by the PM will not be an easy task.
The latest instructions from Le Minh Hung, Governor of the State Bank of Vietnam (SBV), require credit institutions and commercial banks in Vietnam to strictly comply with the SBV’s regulations on mobilising capital in foreign currencies and not offer interest rates exceeding the ceiling levels.
The latest instructions from Le Minh Hung, Governor of the State Bank of Vietnam (SBV), require credit institutions in Vietnam to strictly comply with the SBV’s regulations on mobilising capital in foreign currencies and not offer interest rates exceeding the ceiling levels.
As the Government is striving to obtain credit growth of 20% to 22% this year, many economic experts voiced their concerns over possible adverse impacts of high credit growth on businesses and the economy.
A contest launched by Hanoi’s administration and transport department in January to seek breakthrough solutions to its chronic traffic congestion has just closed in a complete media blackout.
Credit growth rate in the first eight months of 2017 has been estimated at 11.5% compared to the end of 2016, the National Financial Supervisory Commission (NFSC) reported.
The Government has called for faster than targeted credit growth in pursuit of this year’s GDP goal of 6.7%.
VOV-VN. High-tech agriculture is a key direction for economic development. A credit package of US$4.4 million for high-tech and clean agriculture is considered a nudge for agricultural enterprises to expand production. But there remain obstacles to accessing the credit package.
According to the National Financial Supervisory Commission, many supporting factors in both the domestic and international markets could help an interest rate cut until the year-end.
From early 2017 till now, many commercial banks have almost reached the lending growth cap set by the State Bank of Vietnam (SBV) and are now requesting SBV to set a higher credit growth limit to ensure more room for lending.
Credits provided by the Vietnam Bank for Social Policies have helped 179,100 households in the Mekong Delta city of Can Tho escape from poor and near-poor status over the past 15 years, heard a conference in the city on August 1.
The Government’s recent decision on the restructuring of credit institutions ensures that State-owned banks listed on the market no longer have to worry about dividend payout in cash, experts said.
The Prime Minister has issued Decision 1058/QD-TTg approving a project on restructuring the system of credit institutions in combination with settling bad debt for the 2016-2020 period.
The appearance of big foreign retail chains like CircleK, Shop&Go, FamilyMart and Aeon and the strong rise of Vietnamese chains Vinamart, Co-op and The Gioi Di Dong have fostered the development of consumer credit in Vietnam, according to the State Bank of Vietnam.
Consumer lending in Vietnam has prospered in recent years thanks, in large part, to the lending expertise of foreign firms, which has helped to propel the sector closer to its full potential.
The execution of civil judgments recorded good results in the first half of this year, with 314,000 cases being handled, up 3 percent against the same period last year, heard a teleconference on July 10.
The Vietnam Bank for Social Policies (VBSP) said it had a total credit balance of nearly VND166.43 trillion (US$7.3 billion) as of June 30, 2017, up 5.8% compared with the end of last year.