VietNamNet Bridge - Around one out of every two Vietnamese borrows money on credit, according to StoxPlus. 

VietNamNet Bridge - Easing the lending interest rate further by 0.5 percent and obtaining a high credit growth rate of 21-22 percent as instructed by the PM will not be an easy task.

VietNamNet Bridge - Analysts believe that banks at year-end will ease interest rates, which will make loans more accessible for businesses.

VietNamNet Bridge - Many Vietnamese banks have reported high growth rates in retail banking in recent years. 

The irrecoverable debts of 12 Vietnamese commercial banks by September 30, 2015 had reached VND23.522 trillion, which accounts for 65 percent of bad debts, representing a 15 percent increase from the 50 percent reported in mid-2015.

The State Bank of Vietnam (SBV) has been asked by electors from Long An province to reconsider or review the opening of a number of commercial banks there several years ago. A high bad debt ratio in recent years was the reason behind the request.

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 VietNamNet Bridge – While the State Bank repeatedly urges commercial banks to push up lending, economists believe there’s no need to strive for the 12 percent credit growth rate in 2013, if this brings risks.

The State Bank of Vietnam has unexpected allocated the credit growth rate quotas to commercial banks. The disbursement for the national economy must not be higher than 12 percent in 2013.

NFSC has said he can see the possibility of slashing the ceiling deposit interest rate further to 7 percent, thus paving the way for the lending interest rate reduction to 10 percent per annum.

Most commercial banks have reported the very slow outstanding loan growth, forecasting the 12 percent credit growth rate goal for 2013 is unfeasible.

The State Bank of Vietnam has reported that the bad debt ratio has decreased sharply by 2.82 percent to six percent. However, analysts have looked dubiously at the figure

In 2012, the maximum credit growth rate was decided by the State Bank which granted “quota” to every commercial bank. Will the quota scheme be applied in 2013?

The State Bank of Vietnam (SBV) plans to re-impose the regulation on the ceiling lend-to-deposit (LDR) ratio.

The government is considering slashing the lending interest rate to 10 percent in an effort to rescue businesses which have been thirsty for capital. However, this has not been welcomed by commercial banks.