The State Bank loosened credit room for some banks

Specifically, the State Bank of Vietnam has sent a document to credit institutions announcing the increased growth rate for credit institutions publicly and transparently according to specific principles and criteria.

Credit institutions whose credit balance has so far reached 80% of the announced credit target will be proactively added to the increased limit based on the 2022 rating; At the same time, give additional priority to credit institutions that focus credit on priority areas of the Government and lower lending interest rates to low levels in recent times. The addition of this limit is the initiative of the State Bank and it is not necessary for credit institutions to request or request additional amounts.

The State Bank loosened credit room for some banks. Photo: TL

According to the plan from the beginning of 2023, the State Bank determined that credit growth in 2023 will be about 14 – 15% and will be flexibly adjusted in accordance with developments and actual situations, creating favorable conditions for credit institutions to provide credit capital for the economy.

By July 2023, the SBV has allocated credit limits to the entire credit institution system, with a total growth rate of 14.5%. However, the past 11 months have shown that economic growth is still facing difficulties, the capital absorption capacity and credit demand of the economy is still weak, so by November 22, 2023, credit growth of the whole system will only reach 8 21%, lower than the orientation target at the beginning of the year.

The credit growth of the credit institution system is not uniform, some credit institutions have quite high growth, some credit institutions have low growth, even negative growth. Therefore, the State Bank said that this allocation is intended to flexibly regulate credit growth targets throughout the system from credit institutions that do not use all their credit growth targets to credit institutions that need to continue expanding credit growth. .