VietNamNet Bridge – The State Bank of Vietnam has unexpected allocated the
credit growth rate quotas to commercial banks. The disbursement for the national
economy must not be higher than 12 percent in 2013.
The State Bank of Vietnam has decided to allocate credit quotas based on the
operation scale and the capability of commercial banks.
Analysts have noted that some banks have been granted the credit growth rate
limits lower than their capability. VietinBank, for example, planned to have the
outstanding loans growth rate of 15-20 percent in 2013, while the State Bank has
allowed the 13 percent growth rate only. Similarly, MB planned 17 percent and
granted the 12 percent quota, Lien Viet Post Bank wanted 30 percent, but can 12
percent.
However, the majority of banks don’t care much about the credit quotas, saying
that they may not use up the quotas granted by the central bank.
The director of a bank in the south said his bank can have the credit growing by
9 percent this year. Meanwhile, merely no growth has been made so far this year.
He said that it’s very difficult to push up lending at this moment, when
businesses don’t intend to expand their production.
Meanwhile, banks now have to be more cautious with their disbursement. The
stricter regulations on non-performing loan classification with the required
higher provisioning against risks have forced banks to strengthen the credit
quality control. This means that banks would not hurry to lend at any cost to
hit the ceiling credit growth rate.
A senior executive of a medium scaled joint stock bank said his bank’s credit
growth rate was 2 percent in the first months of the year. Therefore, the 12
percent target may be unattainable.
A banker has commented that the central bank is seemingly too cautious when
granting credit quotas. There’s no need to worry that banks would lend too much,
because they cannot find borrowers.
Commercial banks all have reported the very low credit growth rate for the first
quarter of 2013. However, this did not worry banks, because they believe that
pushing up the disbursement at this moment means incurring higher risks.
As for commercial banks now, controlling the credit quality is a more important
task than increasing credit.
Governor of the State Bank — Nguyen Van Binh, also said though the credit grew
slowly in the first quarter of 2013, but the credit quality was better than that
of the same period of the last year.
In fact, banks have been trying every possible method to increase the
disbursement. However, businesses still keep indifferent to the preferential
credit packages launched by banks.
The credit officer revealed that his bank now offers to provide short term loans
to production enterprises at 9 percent per annum for the first 3 months and 12
percent for the next months. As for long term loans, the interest rates would be
floating from the second year. Especially, the bank only requires the low
interest rate of approximately 10 percent per annum, while clients can borrow up
for 10-15 percent, if borrowers have collaterals for the loans.
However, despite the very attractive offers, there have been very few feedbacks
about the credit package.
Most of the banks have reported their strong liquidity, except a few weak small
banks.
Phong Vu