Twenty-two credit institutions post credit growth exceeding 20pct in Jan-Oct

Till the end of October 2011, as many as 38 of 115 organisations posted credit growth exceeding 15 percent, of which as many as 22 institutions had credit growth of above 20 percent, reported the local newspaper VnEconomy on December 15, quoting statistics from an unit of the State Bank of Vietnam (SBV), as saying.

In October 2011, the country saw 59 institutions having negative credit growth compared to September 2011 due to these credit institutions used up the allowable credit limit as prescribed by the central bank.

According to VnEconomy, these institutions are mainly small scaled banks such as Industrial and Commercial Bank of China, Hong Leong Vietnam, Commonwealth Bank of Australia, BNP Bank, Standard Chartered Vietnam.

Meanwhile, many large commercial banks, especially the group of state-run commercial banks reported low credit growth.

For example, till the end of October, credit growth of Vietnam Bank for Agriculture and Rural Development (Agribank) reached only 1.74 percent and the credit growth of some other state-owned commercial banks till the end of November 2011 also reached only above 15 percent, but mainly thanks to these banks signed a series of bilateral cooperation agreements with some small banks whose credit growth limit run out. Via the cooperation, these large banks lent projects of small banks whose credit growth limit run out.

The local newspaper Bao Dau Tu (Investment Newspaper) on December 12 also cited Le Minh Hung, the central bank’s deputy governor, as saying that the central bank plans to build credit growth limit for each group of banks basing on the operational quality of credit institutions.

“In mid-December, the central bank will meet with the credit institutions on the issue of credit growth target in 2012,” Hung said.

 

Category: Finance