SBV Tightens Control over Credit Operations in 2012

The Governor of the State Bank of Vietnam (SBV) issued Document 674/NHNN-CSTT on controlling credit operations in 2012, which was sent to credit institutions and foreign bank branches in Vietnam.

 

Accordingly, the SBV requires credit institutions and foreign bank branches (collectively called credit institutions) to formulate plans and strictly control credit growth for the whole year of 2012 (including exchange rate adjustment factor) on the basis of credit growth targets assigned by the SBV to each group of credit institutions. The total credit outstanding includes the credit outstanding in line with Item 14, Article 4 of the Law on Credit institutions and Circular 21/2010/TT-NHNN dated August 10, 2010; corporate bond purchasing balance (excluding bonds issued by credit institutions); and loan outstanding through entrusted funds from other non- credit institutions.

 

Credit institutions (excluding finance companies licensed in consumer credit) will control maximum outstanding loan to a proportion of 16 percent for discouraged fields (like securities and real estate) in comparison with total outstanding loan for the whole year of 2012.