The State Bank continues to tighten credit capital in real estate

This is one of the contents mentioned in the action plan of the banking industry recently issued by the State Bank to implement Resolution 11 of the Government on the program of socio-economic recovery and development and economic development. declare Resolution No. 43 of the National Assembly on fiscal and monetary policies to support the program.

Accordingly, the State Bank will regulate interest rates in line with the macro balance, inflation and monetary policy objectives, directing credit institutions to continue reducing operating costs to strive to reduce interest rates for customers. loans about 0.5 – 1 percentage point in 2 years 2022 and 2023, especially for priority areas.

In the context that inflation is under increasing pressure, the State Bank said that it will administer credit to support economic growth recovery but not be subjective to inflation risks. Each credit institution will be notified and periodically review and adjust credit growth targets on the basis of business results, financial capacity and healthy credit growth…

Bank capital flows are prioritized into production, business and priority fields

Banks must direct credit to production, business, priority areas according to the policy of the Government, loans to serve life needs, consumer credit… with reasonable interest rates; no loosening of credit terms. Continue to strictly control credit in potentially risky areas such as investment, real estate trading, securities, BOT projects, BT traffic, corporate bonds….

The policy of supporting interest rates of 2%/year for 2 years from 2022-2023 through the system of commercial banks for commercial loans to businesses, cooperatives, and business households, will also be implemented in the next two years. next time.

Regarding corporate bonds, the report on the corporate bond market of SSI Securities Company has just been released, showing that the size of the corporate bond market has increased sharply from 4.93% of GDP in 2017 to to 16.6% of GDP in 2021. The size of the stock and corporate bond market increases rapidly from 68% in 2020 to the equivalent of 88% in 2021 compared to the total credit outstanding of the whole economy.

Notably, although the balance of bonds held by banks still increased, the growth rate was much lower than this market size, helping the proportion of corporate bonds held by commercial banks continuously decrease from 71% in 2018 down to 25% as of the end of last year.

Over the past time, the management agency has issued many warnings and regulations in the direction of tightening the flow of bank credit into corporate bonds.

Proposing to increase charter capital for Agribank right in the first quarter

Joint-stock commercial banks with more than 50% of charter capital held by the State and Bank for Agriculture and Rural Development of Vietnam (Agribank) will be allowed to increase charter capital from profit after tax, after setting aside fund for the period 2021-2023…

Particularly for Agribank, the State Bank will assume the prime responsibility for, and coordinate with the Ministry of Finance in, submitting to the Government for consideration and reporting to the National Assembly a plan to increase charter capital for Agribank from the state budget in the first quarter of 2022.

Thai Phuong