Banks struggle to mobilize capital

Banks struggle to mobilize capital The Saigon Times Daily A customer is seen transacting at an office of Techcombank. The bank is the first one to be allowed to increase its lending limit this year – PHOTO: THANH HOA HCMC – As many banks have almost reached the lending cap set for the whole year, they are now seeking ways to mobilize funds to meet the demand for loans among individual and corporate customers that tends to surge towards the end of the year, reported Thanh Nien newspaper. Late last month, Technological and Commercial Joint Stock Bank (Techcombank) was the first bank to be allowed to increase its credit growth limit from 14% to 20% this year. Thus, Techcombank may offer an additional VND10 trillion (US$430.2 million) this year. Meanwhile, many other banks have reached their maximum credit growth of 14%-15% since early this quarter. Bank for Foreign Trade of Vietnam (Vietcombank), for example, reached the lending cap set for the whole year of 15% in the January-September period, having offered loans totalling VND616.4 trillion. Other banks, such as HCMC Development Joint Stock Commercial Bank, Asia Commercial Bank, Military Bank and Vietnam Bank for Industry and Trade, have also nearly reached their quotas, with respective credit growth rates of 14%, 11%, 10.7% and 12.8%. During the rest of the year, banks will prioritize pumping capital into production and business activities while tightening credit for the real estate sector. Banks will also collect real estate-related debts to provide loans for customers… [Read full story]