Banks expect higher credit growth quota

VIETNAM, May 31 –

A customer at an MB branch. MB may be able to extend its credit growth margin to 30-35%. —Photo

HÀ NỘI — Commercial banks expect to have higher credit growth limits in the second quarter of 2022, as they have already used most of their quota this year.

Under current regulations, the State Bank of Việt Nam (SBV) sets credit growth limits for each commercial bank at the beginning of the year based on the health of the bank, including the credit ratio. capital adequacy, financial strength, risk governance and operational status. This was done to control the credit growth of the entire banking system and to ensure control of the money supply and inflation as aimed by the government.

Vietcombank Chairman Phạm Quang Dũng said Vietcombank’s credit growth reached 8.8 percent as of April 29, while Vietcombank was granted a credit growth quota of 10 percent.

At Military Bank (MB), CEO Lưu Trung Thái also revealed that the bank has been assigned a credit growth target of 15%, so he expects the quota to be further extended in the near future. .

According to Bảo Việt Securities (BVSC), MB has almost reached the assigned credit growth quota, with the bank’s credit growth at the end of the first quarter of 2022 having reached 14.8%. MB is therefore awaiting approval from an SBV for a higher credit quota.

Meanwhile, ACB officials said they had applied to SBV for additional credit quota and hoped to have it approved by the end of June or early July this year to have more room for lending. .

At the end of the first quarter of 2022, ACB’s total outstanding loans reached VNĐ380 trillion, up 5% from the start of 2022. In the first four months of the year, ACB’s credit the bank grew by 8% compared to the beginning of this year, mainly short-term loans to strategic customer segments, including individuals and small and medium-sized businesses.

Experts predict that credit growth in 2022 will be higher than last year when the economy begins to recover from the pandemic. Therefore, banks will also be granted a higher credit quota to facilitate the expansion of loans.

In particular, they said, banks such as Vietcombank and MB, which participate in the restructuring of weak credit institutions according to government guidelines, will have the opportunity to obtain the highest credit quota.

BVSC predicts that MB may be able to extend its credit growth margin to 30-35%, while Vietcombank’s rise will be 16%.

According to the SBV, credit growth of the entire banking system at the end of the first quarter of 2022 reached 5.04%, which is 2.3 times higher than the same period last year.

SBV Deputy Governor Đào Minh Tú said the surge shows that the economy is showing positive signs and the daily life, production and business of people and businesses have also returned to normal thanks to the measures. effective government response to the pandemic.

The 2022 banking system-wide credit growth target that the SBV set at the start of this year was 14%. However, the SBV said that the target may be adjusted up or down at the end of the year, depending on the actual situation, to ensure that it meets the objectives of macro-monetary policies. and controlling inflation. —VNS