The State Bank of Vietnam (SBV) said that the target credit growth of 15% for 2024 closely follows the National Assembly's Resolution and the direction of the Government and the Prime Minister. SBV requires credit institutions (CIs) to control credit growth in 2024.
The principle of calculating the growth target is prescribed by the State Bank according to the formula: Maximum credit balance as of December 31, 2024 = Credit balance as of December 31, 2023 + [Ranking 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 the credit balance (if any).
Credit institutions (except 100% foreign-owned banks and joint venture banks) control credit growth (including exchange rate adjustment factors) not to exceed the above-mentioned credit balance throughout 2024.
100% foreign-owned banks and joint venture banks must control credit growth (including exchange rate adjustment factors) by the end of 2024 not to exceed the above-mentioned credit balance.
Notably, 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.
Accordingly, credit institutions do not need to submit a written request to adjust credit growth targets to the State Bank.
Previously, the Prime Minister signed an official dispatch to the State Bank and a number of ministries and branches on credit growth activities.
The Prime Minister requested the State Bank to focus on operating monetary policy proactively, flexibly, promptly, effectively, feasiblely, scientifically, in accordance with regulations, and closely following the situation, absolutely not and resolutely not allowing the emergence of mechanisms of asking and giving, group interests, negativity, corruption... in credit growth, ensuring the provision of sufficient healthy credit capital, with a focus and key points to serve the economy and the safety of the credit institution system, not allowing congestion, stagnation, delay, untimely or unhealthy credit growth, serving group interests, backyards...
The Prime Minister's Directive clearly states that the Governor of the State Bank of Vietnam directs the use of prescribed tools to strengthen inspection, examination, control and close supervision of the use of assigned credit growth limits by credit institutions, ensuring that credit flows focus on priority and important areas, growth drivers of the economy (consumption, export, investment), serving the needs of production and business development of enterprises and people, creating conditions for safe, healthy and sustainable expansion of production and business but lacking capital.
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