Many banks have more credit room: Increasing financing space
Many mid-range banks have credit room increased to 19-23%. Photo: Internet |
As of July 28, the banking sector’scredit growth was only 3.45% compared to the end of 2019, 0.2% higher than the end of June 2020, and much lower than the same period last year (7.13%), reaching the bottom in recent years.
According to arecent report from the BIDV Securities Company (BSC), the current credit demand to extend business and production is at a low level despite credit packages with preferential interest rates.Banks have also not lowered their credit standards due tofears of risks and are more conservative in providing credit to the market to maintain asset quality to withstand the difficult period.
With such low growth, at the beginning of July, SBV Governor Le Minh Hung said that this year the SBV is determined to be proactive to adjust credit to support credit growth, so the SBV has adjusted a series of growth for commercial banks. Those that are operated fairly and provide credit to fields for economic growth will be adjusted to a higher level than the demand.
Therefore, the report of BSC stated that many banks have extended their credit standards to tens of percentage points.
The most prominent was VIB increased by 8.5-12.5 percentage points compared to the original limit, while TPBank 7.5-11.5 percentage points, HDBank 7-12.2 percentage points; VPBank and Techcombank 6-10 percentage points and MB 8.25 percentage points.
Accordingly, the credit rooms of bankshave been raised to 19-23%. Previously, the credit standards of banks approved by the SBV were as follows: VIB 10.5%; HDBank 11%; TPBank 11.5%; Techcombank and VPBank13%.
However, some banks did not raise their “rooms”, including three state-owned banks (Vietcombank 10%, BIDV 9%, VietinBank 8.5%) and ACB (11.75%), Eximbank (9%). In addition, Agribank did not apply for raising credit standard.
According to the performance results of these banks in the first six months of the year, the common feature is that the banks have a healthy financial situation and good credit growth, which has reached the target of the SBV at the beginning of the year. For example, Techcombank's credit growth has reached 13%, HDBank 11%, VIB 10.5% andTPBank 11%.
According to financial experts, from now to the end of the year, when production and business activities recover and consumption are stimulated, capital demand will increase. Therefore, a larger credit "room" will create more space for banks to finance businesses, thereby reviving the economy. Moreover, the SBV also introduced many supporting policies to the banking sector and the economy, such as reducing the operating interest rates, creating positive effects for the economy.
Proposing to loosen criteria of VND16,000 billion credit package to pay workers salary |
However, BSC said that although banks extended their credit "room” at a relatively high rate, in absolute value, it does not have a big impact on the whole system's targets, as credit is still mainly concentrated on the group of four state-owned banks.
BSC's experts forecast that credit growth of the whole system will be 9% in 2020.
Related News
A “picture” of bank profits in the first nine months of 2024
09:42 | 19/11/2024 Finance
Stipulate implementation of centralized bilateral payments of the State Treasury at banks
09:29 | 29/10/2024 Finance
Difficulty in finding banks eligible to receive compulsory transfers
15:49 | 25/10/2024 Finance
How does the Fed's interest rate cut affect Vietnam?
11:56 | 05/10/2024 Headlines
Latest News
Monetary policy forecast unlikely to loosen further
15:51 | 22/11/2024 Finance
World Bank outlines path for Vietnam to reach high income status
13:44 | 22/11/2024 Finance
Strictly control public debt and ensure national financial security 2025
09:26 | 22/11/2024 Finance
Revising the title of a draft of 1 Law amending seven finance-related laws
14:33 | 21/11/2024 Finance
More News
Transparency evates the standing of listed companies
09:47 | 21/11/2024 Finance
State-owned securities company trails competitors
14:46 | 20/11/2024 Finance
Strengthening the financial “health” of state-owned enterprises
09:23 | 20/11/2024 Finance
U.S. Treasury continues to affirm Vietnam does not manipulate currency
13:46 | 19/11/2024 Finance
Exchange rate fluctuations bring huge profits to many banks
13:43 | 19/11/2024 Finance
Many challenges in restructuring public finance
10:02 | 18/11/2024 Finance
Tax declaration and payment by e-commerce platforms reduces declaration points and compliance costs
09:19 | 17/11/2024 Finance
Disbursement of public investment must be accelerated: Deputy PM
19:32 | 16/11/2024 Finance
HCMC: Domestic revenue rises, revenue from import-export activities begins to increase
09:36 | 16/11/2024 Finance
Your care
Monetary policy forecast unlikely to loosen further
15:51 | 22/11/2024 Finance
World Bank outlines path for Vietnam to reach high income status
13:44 | 22/11/2024 Finance
Strictly control public debt and ensure national financial security 2025
09:26 | 22/11/2024 Finance
Revising the title of a draft of 1 Law amending seven finance-related laws
14:33 | 21/11/2024 Finance
Transparency evates the standing of listed companies
09:47 | 21/11/2024 Finance