Banks_Another Quota Increase

Total system credit quota jumped by +9.9% YTD as at end-Aug, and the SBV granted additional quotas for banks in mid-Sep. We understand that banks (i.e., HDB, MBB, and VCB) that are participating in weak bank restructuring received higher total credit quotas than the sector average.

However, the increased credit quota was equivalent to only about 2% on average based on our estimates, which is modest. We expect the SBV to increase credit quotas again in 4Q22 (our guess is November) to reach its 14% annual credit growth target for 2022.

For the complete report, please access here: Bank_Sector_Credit Quota

Analyst: Tanh Tran, tanh.tran@yuanta.com.vn