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HCM City targets 13 percent credit growth rate in 2015

January 27, 2015 by en.vietnamplus.vn

The State Bank of Vietnam’s Ho Chi Minh City branch has set targets of 13 percent credit growth rate, 12 percent deposit growth rate, under 3 percent bad debt ratio and better-than-last year business results in 2015, said the branch director To Duy Lam.

The banking industry will drastically implement the credit institution restructuring program and tackle bad debts, Lam was quoted by Saigon Giai phong newspaper as saying. They will focus on completing bank merger plans, he added.

Stating at the conference on January 26, permanent deputy Governor of the State Bank Nguyen Dong Tien instructed credit institutions to fulfill merger plans before June 2015 and keep close eyes on the progress to ensure that merged banks will stably operate in the second half of the same year.

In addition, Tien said that the banking system’s average bad debt has been under control.

In fact, many banks have a very low deep debt ratio–about 1 percent.

However, he said, the 3 percent bad debt ratio target will put a heavy pressure on banks. They thus should have financial preparations for risks and ensure effective credit growth.

The target of 13 percent credit growth is suitable but the State Bank’s HCM City branch should pay heed to credit quality, he added.

Last year HCM City banking system achieved positive results. Capital mobilisation went up 15 percent against the previous year to reach 1,344 trillion VND (62.97 billion USD ). Liability increased 12 percent to hit 1,068 trillion VND (50,036 million USD). The monetary market was stable and banking service quality was improved.

The Bank – Business Connectivity Programme has loaned 1,143 customers including businesses, traders and cooperatives with a total capital of 40,057 billion VND (1.88 billion USD).-VNA

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