At the recent Government Standing Conference with commercial banks, Deputy Governor Pham Quang Dung said that the State Bank of Vietnam is implementing proactive and flexible credit management solutions, in line with macroeconomic developments and inflation, creating conditions for businesses and people to access bank credit capital.

Continue to assign annual credit growth targets to credit institutions to ensure publicity, transparency, and consistency with macroeconomic targets and the operations of credit institutions. At the same time, the State Bank is also studying a roadmap to gradually remove this measure according to the policies of the National Assembly and the Government.

According to many experts and bank leaders, abolishing the credit room will make banks more proactive in making business plans, and management agencies can use the required reserve tool to prevent hot credit growth.

According to the second quarter financial report, 8 banks achieved credit growth of over 10% as of June 30 and are expecting to have their credit room expanded, including: NCB (16%), LPBank (15.2%), HDBank (13%), Techcombank (12.9%), ACB (12.8%), MSB (11.4%), Nam A Bank (10.7%), and VietBank (10.2%).

Up to now, credit growth at LPBank has reached nearly 16%, at HDBank it is over 15% compared to the beginning of the year, according to the disclosure of the leaders of these banks at the conference with the Government Standing Committee.

This year, the State Bank of Vietnam allocated all 15% credit room to commercial banks from the beginning of the year. The State Bank of Vietnam has issued a document announcing that from August 28, banks with a credit growth rate in 2024 reaching 80% of the target announced by the State Bank of Vietnam from the beginning of the year will be able to proactively adjust to increase outstanding debt without having to request the management agency...

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The State Bank of Vietnam targets a credit room of 15% in 2024 and will allocate all the room from the beginning of the year. Photo: Hoang Ha

At the May 2024 National Assembly session, National Assembly member Ha Sy Dong said that the purpose of using credit room is to control inflation and stabilize the macro economy. However, imposing such a credit room could lead to a situation of asking and giving, so the representative proposed to completely remove the credit growth target.

Meanwhile, the operating interest rate is a tool of the State Bank to help regulate financial activities, promote the economy or support production activities. The increase or decrease of the operating interest rate will be adjusted and selected by the State Bank with different rates to suit the macroeconomic goals.

Dr. Le Xuan Nghia said that countries are using effective tools to control credit and monetary policy with system safety indicators such as liquidity ratio with return on assets (ROA), return on equity (ROE)... and most importantly, the minimum capital adequacy ratio (CAR).

Previously, in Resolution No. 62/2022 on questioning activities at the 3rd Session of the 15th National Assembly, the National Assembly requested the Government to "study and limit and move towards eliminating the management of credit growth quota allocation for each credit institution".

In the report on the implementation of Resolution No. 62, Governor Nguyen Thi Hong said that they are continuing to review and gradually remove this measure completely. During the implementation process, the SBV has found some difficulties and problems. That is, inflationary pressure still exists, posing challenges to the SBV's monetary and credit policy management when supporting economic recovery while ensuring inflation control.

Therefore, maintaining the credit limit tool is to ensure the safe operation of the banking system, thereby actively contributing to controlling inflation, supporting economic growth and macroeconomic stability.