Following the National Assembly's resolution and the direction of the Government and the Prime Minister, the State Bank of Vietnam targets credit growth in 2024 at about 15% and flexibly adjusts to suit developments and actual situations.
State Bank targets credit growth in 2024 at about 15%
To facilitate credit institutions (CIs) to provide credit capital to meet economic growth needs, the State Bank of Vietnam (SBV) assigned the entire credit growth target of 15% and required CIs to control credit growth in 2024.
The document of the State Bank clearly states: maximum credit balance as of December 31 = credit balance as of December 31, 2023 + [rating score in 2022 x 3.5% x (credit balance as of December 31, 2023 - credit balance exceeding the credit growth target announced by the State Bank in 2023 (if any))] - credit balance sales made in 2024 and not yet collected at the time of calculating credit balance (if any).
100% foreign-owned banks and joint venture banks shall control credit growth (including exchange rate adjustment factors) by the end of 2024 not exceeding the above-mentioned credit balance. The remaining credit institutions shall control credit growth (including exchange rate adjustment factors) not exceeding the above-mentioned credit balance throughout 2024.
Outstanding credit to control credit growth targets includes: lending; discounting, rediscounting of negotiable instruments and other valuable papers; financial leasing; factoring; payments on behalf of individuals and organizations in cases where guaranteed individuals and organizations cannot fulfill their obligations when due; issuing credit cards; purchasing and investing in corporate bonds (excluding bonds of the One Member Limited Liability Company Managing Assets of Credit Institutions in Vietnam); other credit granting operations approved by the State Bank.
The State Bank requires credit institutions to conduct safe credit growth, in accordance with their risk management capacity, liquidity situation and capital mobilization ability; ensure credit quality, use capital for the right purpose and effectively, limit the increase and occurrence of bad debts, and ensure the safe operation of credit institutions.
It is strictly forbidden to grant credit not in accordance with legal regulations, to the wrong subjects, to grant credit to the board of directors, executive board and related persons of credit institutions, enterprises in the ecosystem, "backyard" enterprises... with preferential interest rates while people and enterprises with legitimate and legal needs have difficulty accessing credit capital.
Credit institutions continue to maintain stable deposit interest rates and strive to reduce lending interest rates. Regularly review to cut and reduce administrative procedures, simplify credit granting processes and procedures, ensure compliance with legal regulations, create favorable conditions, support businesses and people to access bank credit.
In 2024, the State Bank will closely monitor developments and actual situations to proactively, flexibly, promptly, effectively and scientifically manage credit growth; closely follow the situation to thereby support the system of credit institutions to ensure adequate credit supply to serve the economy and the safety of the credit institution system, associated with promoting priority for economic growth, stabilizing the macro economy, and controlling inflation.
Based on the assessment of developments and appropriate actual situations, the State Bank will adjust the credit growth target for 2024 and proactively adjust the credit growth target of each credit institution to send to each credit institution, creating conditions for credit institutions to provide sufficient and timely credit capital for the economy.
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