Among the banks, Maritime Commercial Joint Stock Bank (MSB) has received the highest credit growth quota of 13.5% against 9.5% in 2022. MSB is also the only bank that has been granted a higher credit growth quota compared to 2022.

The remaining banks have received lower credit growth quotas than last year, such as HCM City Development Commercial Joint Stock Bank (HDBank) with 11% (against 15% in 2022), Asia Commercial Joint Stock Bank (ACB) with 9.8% (against 10% in 2022), Vietnam International Commercial Joint Stock Bank (VIB) with 9.5% (against 10% in 2022), Tien Phong Commercial Joint Stock Bank (TPBank) with 9.1% (against 11.5% in 2022), Vietnam Prosperity Commercial Joint Stock Bank (VPBank) and Military Commercial Joint Stock Bank (MB) with the same credit growth quota of 9% (against 15% in 2022).

The SBV said it would regularly monitor and supervise the implementation of the credit growth quota of each bank. Based on the macroeconomic situation, market developments and banks’ proposals, the SBV would review and adjust the credit growth target for banks in accordance with the orientation of the Government and the Prime Minister.

According to the SBV, the granting of credit growth quota for each bank is based on a number of basic criteria, such as the bank’s rating results, the bank’s proportion of outstanding loans to the 100 largest customers, the bank’s interest rates, and the bank’s participation in supporting weak banks.

The SBV has applied the policy of granting a credit growth quota for each bank since 2011 with an aim to avoid overheated credit growth. Every year, the SBV usually considers granting the first credit growth limit to banks in the first quarter of the year and then will make adjustments to match the Government’s targets.

The SBV said the credit growth target in 2023 would be about 14-15% against 14% in 2022, with flexible adjustments in line with actual developments.

As for interest rates, Nguyen Quoc Hung, General Secretary of the Vietnam Bankers Association (VNBA), told Nguoi Lao Dong (Labourers) Newspaper that commercial banks agreed at a recent meeting to reduce deposit interest rates by about 0.2-0.5 percentage points per year from March 6, 2023.

The reduction in the input cost is aimed at gradually reducing lending rates to support firms and boost economic growth.

This will be the second time commercial banks have agreed to reduce deposit interest rates. At the end of last year, they agreed to lower the deposit interest rate to a maximum of 9.5% per year, including promotions and incentives.

According to firms, lending interest rates have remained too high in recent times, which has caused them to face difficulties in production and business. Due to the rising interest costs, firms’ profits have been eroded. Therefore, an interest rate cut at this time is necessary to support firms./. VNS