Military Commercial Joint Stock Bank (MB) on August 13 received approval from the State Bank of Vietnam (SBV) to raise its credit growth limit in 2012 to 25 percent from the end of 2011, the local Newswire Thoi Bao Kinh Te Saigon (Saigon Economic Times) reported.
Earlier, MB was assigned credit growth this year at 17 percent by the central bank.
Not long ago, Tien Phong Commercial Joint Stock Bank (TienPhongBank) and Ocean Commercial JS Bank (Ocean Bank) also announced receiving the nod from the central bank to raise their credit growth quota this year to maximum 27%.
In the next few days, the central bank will continue to loosen credit growth for a number of commercial banks. Some commercial joint-stock banks and 100 percent foreign-invested banks have also proposed the central bank to loosen their credit room.
In early this year, the credit growth target of the whole banking system was announced at 8-10%, however, not long ago, the central bank adjusted down this year credit growth target to 6-8 percent due to the challenges of the economy.
Banks by the end of the second quarter this year witnessed declines in profit and worried about this year’s business targets. Therefore, the additional credit growth is expected to improve to profit of banks by the end of the year.