Vietnam Maritime Commercial Joint Stock Bank (HoSE: MSB) was granted the highest credit limit in the banking industry by the State Bank of Vietnam for the first time in 2023, at 13.5%.
In an updated report on the banking industry recently released, Vietcombank Securities stated that MSB has a higher credit growth rate than the industry average thanks to its participation in State Bank of Vietnam support projects, real estate lending relaxation, and expansion of lending to sectors supporting economic recovery.
Additionally, MSB was granted the highest credit limit in the industry, at 13.5%, for the first time in 2023, and is estimated to achieve a credit growth rate of about 16% in 2023.
Previously, VnDirect Securities also stated that the State Bank of Vietnam had granted credit limits to some banks.
Among them, MSB was granted the highest credit limit, at 13.5%. HDBank was granted a limit of 11%, ACB (9.8%), VCB (9.8%), VIB (9.5%), TCB (9.5%), TPB (9.1%), VPB (9%), MBB (9%), BID (8.3%), and LPB (8%).
According to the analysis group, these banks have diversified credit portfolios, participate in supporting weaker credit organizations, possess healthy asset quality, and abundant liquidity, such as VCB, ACB, HDB,… MSB, in particular, has the best credit limit primarily due to its loan-to-deposit ratio (LDR) being much lower than other banks.
The credit ceiling control mechanism for commercial banks has been implemented by the State Bank of Vietnam since 2011. Each year, based on the growth direction, the State Bank of Vietnam considers granting initial credit limits to banks in the first quarter and then adjusts them to fit operational objectives.
In 2022, the State Bank of Vietnam also granted initial credit limits to banks in the first quarter and had three rounds of credit growth limit expansion for banks in the latter months of the year.
In 2023, the State Bank of Vietnam stated that the credit growth direction would be around 14-15%, with adjustments made to suit the actual situation. This goal is slightly higher than the initial target for 2022 (14%). Even if conditions are favorable, credit limits will be adjusted to increase further.