At the regular Government press conference in December 2023 on the afternoon of January 5, SBV Deputy Governor Dao Minh Tu informed that credit growth in 2023 will reach 13.71%. The Deputy Governor said that SBV also expects that with the favorable factors currently in place, credit growth in 2024 will be better than last year.
 |
| Deputy Governor of the State Bank of Vietnam Dao Minh Tu answered the press at the regular Government press conference in December 2023 |
Deputy Governor of the State Bank of Vietnam Dao Minh Tu said at the Government Conference with localities on the morning of January 5, the Governor of the State Bank of Vietnam officially reported on credit growth figures for 2023. Accordingly, the growth rate is 13.71%, equivalent to the absolute volume of capital injected into the economy of about 1.5 million billion VND in the past year.
“We expect credit growth to be 15% in 2024. Thus, if calculated on the basis of the current amount of money and outstanding debt of about VND13.56 trillion, it means that nearly VND2 trillion will be increased in 2024,” the Deputy Governor said, noting that the expected increase of 15% is under current calculation conditions. If by mid-year or end of the year, the macroeconomic conditions are stable, inflation is well controlled, capital flows are ensured to the right subjects as well as the safety of the credit institution system, more may be assigned to commercial banks for higher credit growth.
Answering the reporter's question about whether the credit outlook in 2024 will be more favorable, Deputy Governor of the State Bank of Vietnam Dao Minh Tu said that in 2024 there are many signs of economic recovery based on this year's results, and at the same time hoped that there would not be many difficult international impacts on Vietnam like in 2023, then the investment demand of the economy will certainly increase, accordingly there must be resources to meet that investment and development demand.
In addition, increasing credit depends on factors such as interest rates. Currently, interest rates have decreased, much lower than before the pandemic, and many experts even assess that current lending interest rates are as low as in the past 20 or 10 years. This is one of the basic factors for credit to increase strongly.
Along with that, the operating mechanism as well as the implementation of lending by commercial banks, this year the State Bank has been proactive, has new mechanisms for credit management, has assigned before January 1st the credit limit for all credit institutions of 15%, so that credit institutions strive to achieve that target.
“If any bank or credit institution achieves that target and is still able to provide additional capital to the economy, ensuring quality and safety of the system, and ensuring that macroeconomic conditions allow, we will continue to assign more. That means that, in terms of the mechanism and direction of the Government, the conditions on interest rates, loan demand, loan conditions of enterprises as well as the general operating mechanism of credit institutions, we hope that 2024 will be much better than 2023,” said Deputy Governor of the State Bank of Vietnam Dao Minh Tu.Source link
Comment (0)