SBV Requires Control of Credit Extension in 2011

The State Bank of Vietnam (SBV) issued the Document No. 3976/NHNN-CSTT on credit extension in 2011 to be sent to credit institutions, branches of foreign banks, the SBV Financial Supervision Agency and the SBV municipal and provincial branches.

 

Accordingly, in order to comply with the Government’s directives on implementing the tight and prudent monetary policy, the SBV requires credit institutions and branches of foreign banks to develop plans and maintain the credit growth rate of below 20 percent for the whole year of 2011, and reduce the pace and proportion of loan outstanding for the non-productive sector, especially real estate and securities trading, as compared to 2010.

 

Moreover, the SBV Governor requires the SBV Financial Supervision Agency and the SBV municipal and provincial branches to monitor and impose due sanctions on all the violating institutions.