Following the Resolutions of the National Assembly, the guidance of the Government and the Prime Minister, the State Bank of Vietnam (SBV) has managed the monetary policy in a proactive, flexible and effective manner, in collaboration with the fiscal policy and other macro-economic policies in order to control the inflation, contributing to maintaining the macro-economic stability, supporting the economic growth. From the beginning of 2024, the SBV had assigned all credit growth targets of around 15% to the credit institutions, as stated in Directive No. 01/CT-NHNN dated January 15, 2024.
The SBV’s headquarters
As of August 26, 2024, the credit outstanding of the entire system increased by 6.63% as compared to that of the end of 2023, significantly lower than the target set at the beginning of the year; the credit growth rates of the credit institutions were uneven. Some credit institutions experienced relatively low credit growth rates, even negative growth for some cases, while others’ credit growth rates were already close to the targets announced by the SBV. Therefore, in order to implement the Government's and the Prime Minister’s directions on managing the credit growth in a flexible and effective manner, meeting the capital demand of the economy, controlling the inflation and maintaining the stability of the macro-economy, the SBV has decided to adjust the credit growth targets for the credit institutions.
Accordingly, from August 28, 2024, the credit institutions that have reached at least 80% of their 2024 credit growth targets set by SBV at the beginning of the year will be allowed to increase their credit outstanding based on their credit ratings.
In addition, the SBV has also requested the credit institutions to implement strictly the directions on the monetary and credit operations, as well as the SBV’s regulations on credit granting in order to ensure the safety of the entire system and the stability of the monetary market; ensuring the safety of the credit institution’s operations, the effective credit growth, and preventing expanding or newly emerging bad debts; continuing to maintain the stability of the average interest rates applicable to deposits, and strengthening the implementation of the solutions to reduce the operational costs, simplifying the lending processes and procedures, applying information technology and the digital transformation to reduce the lending interest rates
In the coming time, the SBV would continue to closely monitor the developments in the international and domestic markets and stand ready to support the market with liquidity, in order to facilitate the credit institutions’ supply of credit to the economy, and to initiate appropriate solutions for the monetary policy management.
HY