Bangkok (VNA) – The Vietnamese branch of Bangkok Bank hassought permission from the State Bank of Vietnam to increase lending growth capafter its lending expansion during the first half of 2018 neared the 15-percentannual limit.
The branch’s loan growth is likely to reach 30 percent this year after13 percent growth in the first six half, the Bangkok Post quoted Tharabodee Serng-Adichaiwit, senior vice-presidentand general manager of the bank’s Vietnamese operations, as saying.
The State Bank of Vietnam started capping loan growth for both localand foreign financial institutions at 15 percent annually from last year as partof efforts to keep a lid on inflation and exchange rate and maintain theinterest rate at a low level to propel economic growth, the news outlet said.
However, financial institutions can request to raise loan growth limitsand the regulator will determine this on a case-by-case basis.
The Bangkok Post reported that Vietnam delivered strong economic growthof 7.08 percent year-on-year in the first half, compared with a full-yeargrowth projection of 6.8percent. Inflation was at 3.29 percent, below thecentral bank's 4-percent target for this year.
Most of the loans were taken out from the Bangkok Bank branchin Vietnam by businesses in the sectors of energy, agriculture, manufacturing,food and garment.
Thai customers, representing 47 percent of the total loanportfolio, were the biggest growth contributor, followed by multinationalcompanies at 43 percent and local clients who made up the rest.
The bank expects local clients, particularly large companies,will account for 50 percent of the loan portfolio in the next 5 – 10 years, inline with positive domestic consumption and investment growth. –VNA
The branch’s loan growth is likely to reach 30 percent this year after13 percent growth in the first six half, the Bangkok Post quoted Tharabodee Serng-Adichaiwit, senior vice-presidentand general manager of the bank’s Vietnamese operations, as saying.
The State Bank of Vietnam started capping loan growth for both localand foreign financial institutions at 15 percent annually from last year as partof efforts to keep a lid on inflation and exchange rate and maintain theinterest rate at a low level to propel economic growth, the news outlet said.
However, financial institutions can request to raise loan growth limitsand the regulator will determine this on a case-by-case basis.
The Bangkok Post reported that Vietnam delivered strong economic growthof 7.08 percent year-on-year in the first half, compared with a full-yeargrowth projection of 6.8percent. Inflation was at 3.29 percent, below thecentral bank's 4-percent target for this year.
Most of the loans were taken out from the Bangkok Bank branchin Vietnam by businesses in the sectors of energy, agriculture, manufacturing,food and garment.
Thai customers, representing 47 percent of the total loanportfolio, were the biggest growth contributor, followed by multinationalcompanies at 43 percent and local clients who made up the rest.
The bank expects local clients, particularly large companies,will account for 50 percent of the loan portfolio in the next 5 – 10 years, inline with positive domestic consumption and investment growth. –VNA
VNA
