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An additional $3.5 billion to be put into the economy

Four banks include VPBank, HDBank, MB and Vietcombank has just adjusted its credit room for the third time this year.

VNDirect Securities Corporation estimates that about VND83.5 trillion (US$3.5 billion) will be added to the economy after some banks continue to adjust their credit growth limits for this year.

Four banks, VPBank, HDBank, MB and Vietcombank have just adjusted its credit room for the third time this year.

According to VNDirect's data, VPBank has the highest credit growth at this time, adding up to 11.5 per cent, bringing the credit growth for the whole year to 27.2 per cent.

This result is higher than VNDirect's previous forecast of 23 per cent and 20.2 per cent higher than last year, followed by HDBank and MB with the limits extended by 5.1 per cent and 5 per cent respectively.

It brings the full-year credit growth at these two banks to more than 23 per cent and also higher than VNDirect's previous forecast of 20 per cent.

As for Vietcombank, the credit room was added by 0.9 per cent, meaning their full-year credit growth could reach 18.6 per cent.

Up to this point, these are the four banks that are granted the highest credit room in the system, while the remaining banks have only 10-15 per cent room for the whole year.

Based on VNDirect's calculations for 18 banks, about 80 per cent of system credit, the total credit growth of this group after the adjustment will reach about 13.6 per cent by the end of the year.

"This is a move to reallocate credit lines among commercial banks and the State Bank's target of 14 per cent is still maintained," VNDirect said.

At the beginning of September, the State Bank of Viet Nam had an additional adjustment of credit limits for many commercial banks, including the above four banks.

The additional credit growth limit ranges from 0.7 - 4 per cent; in which, Sacombank was granted an additional maximum limit of 4 per cent.

Representatives of banks said that with the additional credit room, banks would continue to control credit growth in essential sectors and industries of the economy, priority areas of the Government, well control liquidity and credit risk, ensure that bad debt ratio is controlled at a low level.

The State Bank of Viet Nam said that the adjustment of the credit room was based on the assessment of the operation of credit institutions in accordance with its regulations, contributing to controlling inflation and stabilises the money market.

At the same time, credit institutions are encouraged to improve their business administration, operational safety, and healthy banking system.

In response to experts' suggestions about the full-year credit growth target that can be adjusted to 15 - 16 per cent, Nguyen Thi Hong, SBV Governor said credit management was a very important tool to focus on controlling inflation this year and next.

The State Bank of Viet Nam will continue to maintain its credit growth target of 14 per cent for this year and its consistent policy management is right and won, which is highly appreciated by international organisations.

A report by the SBV’s Monetary Forecasting and Statistics Department shows that credit growth has reached 10.96 per cent and credit demand is forecasted to continue to increase in the last months of the year as of September 28. — VNS

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