The State Bank of Vietnam (SBV) has just sent a document to credit institutions (CIs) regarding the credit growth plan for 2024.
Accordingly, closely following the Resolution of the National Assembly, 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.
To facilitate credit institutions to provide credit capital to meet economic growth needs, the State Bank of Vietnam has assigned the entire credit growth target of 15% and required credit institutions 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 for 100% foreign-owned banks and joint venture banks) shall 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 shall control credit growth (including exchange rate adjustment factors) by the end of 2024 not to exceed the credit balance level mentioned above.
The State Bank requires credit institutions to conduct safe credit growth, in accordance with the risk management capacity, liquidity situation and capital mobilization ability of credit institutions, ensuring credit quality, using capital for the right purpose and effectively, limiting the increase and occurrence of bad debts, and ensuring the safe operations of credit institutions.
Credit growth must be on target and appropriate, with credit going into production and business sectors, priority sectors and growth drivers according to the Government's policies; credit must be strictly controlled in sectors with potential risks.
At the same time, it is strictly forbidden to grant credit in violation of 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, scientifically manage credit growth, closely following the situation, thereby supporting the system of credit institutions to ensure adequate supply of credit capital to serve the economy and the safety of the system of credit institutions, 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. Accordingly, credit institutions do not need to submit a written request to adjust the credit growth target to the State Bank .
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