HANOI, Sept 10 (Reuters): The State Bank of Vietnam (SBV) said it had raised credit growth caps for some banks this year, based on their latest operating results, developments market and proposals.
The move is intended to boost lending for some banks without encouraging excessive credit growth, and only banks that meet certain interest rate and bad debt management requirements will be allowed to adjust credit growth upwards. their credit, the SBV said. He did not name any bank.
In 2012, Vietnam suffered from a non-performing loan crisis, blamed for holding back several years of meteoric growth in Southeast Asia’s manufacturing hub.
“With this increase, companies and individuals will have better access to capital. However, the capital granted must go to government priority areas such as production, and not to risky areas,” the SBV said.
Several local banks have already approached the overall credit growth limit of 14% for 2022, and the risk remains of a further increase in non-performing loans, he added.
Vietnam is targeting growth of 6.0% to 6.5% and inflation below 4% this year. Consumer prices in August rose 2.89% from a year earlier. Credit growth was 9.91% at the end of 2021. –