State Bank of Vietnam (SBV) promulgated Instruction No 03 dated 17/07/2013 on management solution of monetary and credit policies, banking activities in ending months of the year, in which emphasize target of credit growth to 12%.

SBV push all efforts to raise credit growth to 12%

In this Instruction, managers require credit institution to expand effective credit to meet the requirement of credit growth speed to 12% as planned. SBV considered adjusting some target indicators to credit institutions, which enable to expand their loanbased on healthy capital, focusing on priority sectors to ensure the quality. 

In the first six months of the year, due to the difficult operation of companies, the credit rate just raises to more than 4%. 2/3 of the remaining goals will be pushed on second half of year with many challenges. SBV requests banks to implement solutions to unlock the credit relations between banks and their customers, to continually explore credit demands to build solutions, credit growth solutions for each area and priority sectors and fields. Banks also have to organize, implement programs and credit policy based on the guidance by Government.

Many banking experts are afraid of 12% credit growth targeted by SBV is hard to reach in the concept of great capital without being granted to borrowers and low economic growth. However, SBV has just reported that banking capital is on the way of being unlocked.

On the other hand, some banks are still on the way of great credit growthsuch as Sacombank, they increase to more than 11% until the end of June. Specially, this bank has been loosen credit room to 20% by SBV.
Addition to the target of credit growth, SBV requires commercial banks to organize and grant “a supportive mortgage loan of VND 30.000 billion dongs for social housing” to people, in which focusing on guiding and explaining policy for them to understand and fully execute.

Indicator 03 also requires credit institutions to build and implement routes to finalize outstanding gold loans.  Representing as a gold keeper, banks are not allowed to use the goal to mortgage, deposit in order to ensure the borrowers’ repayment obligations in other credit institutions.

(Source: vnexpress.net)