State Bank adjusts credit growth targets among banks

On November 29, 2023, the State Bank of Vietnam (SBV) sent a document to credit institutions notifying them of the additional growth rate for credit institutions (CIs).

Accordingly, credit institutions with outstanding credit balances reaching 80% of the announced credit target will be proactively supplemented with additional credit limits based on the 2022 ranking, while giving priority to credit institutions that focus credit on priority areas of the Government and have lowered lending interest rates to low levels in the recent past.

The addition of this limit is the initiative of the State Bank and credit institutions do not need to request or ask for the addition.

Financial institutions need to strengthen review, cut administrative procedures, and simplify lending processes and procedures.

At the same time, the State Bank requires credit institutions to provide safe and healthy credit, support businesses, ensure credit growth in line with risk management capacity, capital mobilization ability, as well as balance sufficient capital sources for credit provision, continue to maintain stable mobilization interest rates and actively reduce lending interest rates, direct credit to production and business sectors, priority sectors and growth drivers according to the Government's policy, promptly meet the capital needs of people and businesses.

Financial institutions need to strengthen the review, cut administrative procedures, simplify lending processes and procedures, both ensuring compliance with regulations and creating favorable conditions for customers to access bank credit, supporting businesses and people to restore production and business.

From now until the end of the year, the State Bank will continue to closely monitor market developments to have timely and appropriate management solutions, proactively supplement limits, and be ready to support liquidity to create conditions for credit institutions to provide credit capital for the economy.

In the Directive at the beginning of the year, the State Bank determined that the credit growth rate in 2023 would be around 14-15% and would 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 State Bank of Vietnam had allocated credit limits to the entire system of credit institutions and foreign bank branches (CIs) with a total growth rate of 14.5%. However, over the past 11 months, economic growth has faced difficulties, the economy's capital absorption capacity and credit demand are still weak, so by November 22, 2023, the credit growth of the entire system had only reached 8.21%, lower than the target set at the beginning of the year. The credit growth of the CI system is uneven, with some CIs growing quite high, some CIs growing low, or even negative.

Therefore, in order to promptly and flexibly manage and meet the requirements of continuing to promote credit growth to serve capital needs for the economic growth recovery process under the direction of the Government and the Prime Minister, the State Bank has proactively and flexibly adjusted credit growth targets in the entire system from credit institutions that have not fully utilized their credit growth targets to credit institutions that need to continue to expand credit growth.

At the same time, the State Bank will continue to manage credit growth in 2023 so that it does not exceed the set target while still ensuring growth room to meet the economy's credit capital needs and the safety of the credit institution system.

Bank interest rates November 30, 2023: The 'big guys' paying the lowest interest rates continue to decrease . Bank interest rates today, November 30, 2023, witnessed a series of 'big guys' banks adjusting their deposit interest rates down. The lowest term deposit interest rate on the market is currently only 2.4%/year.

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