A Maritime Commercial Joint Stock Bank (MSB) transaction office in Hanoi. MSB has been granted the highest credit growth quota of 13.5% against 9.5% in 2022. (Photo: VNA) Among the banks, Maritime Commercial Joint Stock Bank (MSB) has received thehighest credit growth quota of 13.5% against 9.5% in 2022. MSB is also the onlybank that has been granted a higher credit growth quota compared to 2022.
The remaining banks have received lower credit growth quotas than last year,such as HCM City Development Commercial Joint Stock Bank (HDBank) with 11%(against 15% in 2022), Asia Commercial Joint Stock Bank (ACB) with 9.8% (against10% in 2022), Vietnam International Commercial Joint Stock Bank (VIB) with 9.5%(against 10% in 2022), Tien Phong Commercial Joint Stock Bank (TPBank) with 9.1%(against 11.5% in 2022), Vietnam Prosperity Commercial Joint Stock Bank(VPBank) and Military Commercial Joint Stock Bank (MB) with the same creditgrowth quota of 9% (against 15% in 2022).
The SBV said it would regularly monitor and supervise the implementation of thecredit growth quota of each bank. Based on the macroeconomic situation, marketdevelopments and banks’ proposals, the SBV would review and adjust the creditgrowth target for banks in accordance with the orientation of the Governmentand the Prime Minister.
According to the SBV, the granting of credit growth quota for each bank isbased on a number of basic criteria, such as the bank’s rating results, thebank’s proportion of outstanding loans to the 100 largest customers, the bank’sinterest rates, and the bank’s participation in supporting weak banks.
The SBV has applied the policy of granting a credit growth quota for each banksince 2011 with an aim to avoid overheated credit growth. Every year, the SBVusually considers granting the first credit growth limit to banks in the firstquarter of the year and then will make adjustments to match the Government’stargets.
The SBV said the credit growth target in 2023 would be about 14-15% against 14%in 2022, with flexible adjustments in line with actual developments.
As for interest rates, Nguyen Quoc Hung, General Secretary of the VietnamBankers Association (VNBA), told Nguoi Lao Dong (Labourers) Newspaper thatcommercial banks agreed at a recent meeting to reduce deposit interest rates byabout 0.2-0.5 percentage points per year from March 6, 2023.
The reduction in the input cost is aimed at gradually reducing lending rates tosupport firms and boost economic growth.
This will be the second time commercial banks have agreed to reduce depositinterest rates. At the end of last year, they agreed to lower the depositinterest rate to a maximum of 9.5% per year, including promotions andincentives.
According to firms, lending interest rates have remained too high in recenttimes, which has caused them to face difficulties in production and business.Due to the rising interest costs, firms’ profits have been eroded. Therefore,an interest rate cut at this time is necessary to support firms./.
VNA
