Several banks have posted low profit growth in the first quarter (Q1) of this year, with some even seeing negative growth, mostly due to a spike in non-performing loans (NPLs), leading to soaring provisioning costs.
The State Bank of Vietnam (SBV) has expected credit growth to hit 14-15% this year, leaving a possibility that it might adjust the orientation to suit the actual business situation and developments.
The State Bank of Vietnam has raised the domestic banking system’s credit growth by 1.5-2.0 percentage points from the previous 14 per cent limit on December 5.
The SBV expected the amendment of the Law on Credit Institutions will prevent cross-ownership and governance abuse of major shareholders to manipulate the operations of credit institutions.
Many banks have unveiled their third-quarter business results, showing a spike in their profits, leveraging well-conceived retail lending development strategy amid restricted credit line.
The State Bank of Viet Nam has decided to raise key interest rates by 1 percent, effective from October 25.