In the context of low credit growth in the whole industry, some banks still have good growth and ask to expand credit room. Finance Banking Going against the trend, many banks have high growth - ask to expand credit room
According to the State Bank of Vietnam (SBV), as of October 24, 2023, credit to the economy increased by 6.811 trillion VND compared to the end of 2022, of which it has increased faster since May; credit to businesses reached nearly 6.5 million billion VND, accounting for over 501 trillion VND of outstanding debt in the entire economy.
However, in the previous report of the State Bank, by the end of September 2023, credit reached over 12.7 million billion VND, an increase of 6.921 TP3T compared to the end of 2022. Thus, after only about 25 days, credit has turned to decrease by 0.111 TP3T.
Credit in October decreased, many banks had low credit growth, even negative credit growth.
In the context of slow credit growth in the whole industry, some credit institutions still have quite good credit growth and have requested to continue adjusting the credit growth target for 2023.
Mr. Pham Chi Quang, Director of the Monetary Policy Department (SBV), recently said that some credit institutions still have quite good credit growth and suggested that the SBV continue to adjust the credit growth target for 2023.
According to the financial report of the third quarter of 2023, many banks still have quite good credit growth such as VPBank (VPB), LPBank, Techcombank (TCB), HDBank (HDB), ACB (ACB), ... These banks all have credit growth rates many times higher than the average credit growth rate of the whole industry (as of September 29, it was 6,92%).
Specifically, credit growth of Vietnam Prosperity Joint Stock Commercial Bank (VPBank - Code: VPB) in the third quarter of 2023 increased by more than 22% compared to the beginning of the year, reaching more than 488 trillion VND. The growth rate at this bank is 3 times higher than the industry average growth rate of 6,92% by the end of September. Notably, credit in the third quarter of this bank increased by 8% compared to the previous quarter, distributed relatively evenly to the fields of production, business, consumption..., with the strategic block of individual customers and SMEs contributing to nearly 60% of the bank's total outstanding loans.
At Vietnam Technological and Commercial Joint Stock Bank (Techcombank - TCB), as of the end of September, credit growth increased by 11.41% compared to the beginning of the year, reaching 495.4 trillion VND.
Lien Viet Post Joint Stock Commercial Bank (LPB) also had impressive credit growth. In the first 3 quarters of the year, LPBank recorded positive credit growth, reaching a total outstanding loan balance of VND263,640 billion, equivalent to an increase of 11.8% compared to the beginning of the year.
Saigon - Hanoi Bank (SHB) had outstanding credit balance in the first 9 months of the year reaching 430 trillion VND, an increase of 10% compared to the end of 2022.
Similarly, after 3 quarters, the total consolidated outstanding loan balance of Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank – HDB) reached VND299,081 billion, an increase of over VND11.51 billion compared to the beginning of the year. The parent bank's outstanding loan balance exceeded VND284,040 billion, an increase of over VND13.1 billion.
At Asia Commercial Joint Stock Bank (ACB), as of the end of September 2023, the bank's outstanding loans recorded an increase of 8.2% compared to the beginning of the year, higher than the growth of the whole industry.
According to the Monetary Policy Department, the liquidity of the credit institution system is abundant and there is still a lot of room for credit growth. Specifically, the entire system has about 8% left for credit growth, equivalent to providing an additional 950,000 billion VND of credit to the economy.
In the context of excess credit in the banking industry, many opinions suggest that the State Bank should remove the credit room.
In 2022, the National Assembly questioned the Governor of the State Bank for the first time about the credit room, requesting to move towards eliminating the credit room. However, in 2023, this mechanism will still be applied. The Governor of the State Bank said that if credit institutions increase credit growth without control measures, the banking system could return to the state of hot credit growth as in the period before 2011.
Maintaining the credit limit tool is to ensure the safe operation of the banking system, thereby actively contributing to controlling inflation, supporting economic growth and stabilizing the macroeconomy.
In 2023, the State Bank of Vietnam plans to manage the credit growth target for the whole system at about 14-151% per year, with appropriate adjustments based on developments and actual situations.
The State Bank has granted two credit room periods to banks in February 2023 and July 2023. The first announcement of credit growth targets for each credit institution is based on a number of basic criteria such as the results of credit institution rating scores up to the most recent time, the level of credit concentration, participation in supporting the handling of weak credit institutions (weak banks, weak people's credit funds), the actual market situation, etc.
The adjustment of credit growth targets for credit institutions is carried out by the State Bank based on the credit institutions' proposals, operational situation, financial capacity, governance and ability to expand healthy credit of each credit institution, ensuring liquidity and operational safety of the credit institution system.
Opening the way for consumer loans – pushing back black credit
Source: Investing
