On December 22, 2022, the Governor of the State Bank of Vietnam (SBV) signed Document No. 9064/NHNN-TD to be sent to the credit institutions and the foreign bank branches requesting them to seriously implement a number of measures on credit and interest rates in the coming months, in line with the instructions of the Government and the Prime Minister, and based on the market developments, the latest situations of the credit and the interest growths within the credit institution system.
Based on the credit growth targets announced by the SBV, the credit institutions should actively balance their capital sources to promptly meet the credit capital needs of the economy while still minimizing maturity risks; Focus on granting credit to production and business operations and priority areas (agriculture, export, small and medium enterprises, support industries, hi-tech companies); the drivers of the economic growth in line with the instructions of the Prime Minister (investment, consumption and export); the construction of industrial parks; loans to meet the people's housing needs; residential property projects which are about to be completed and delivered, with good ability to repay the loan in full and on time, and with a clear legality status and good liquidity, especially social housing and workers’ housing projects, or commercial housing projects with reasonable prices.
The credit institutions are also requested to strictly control credit risks for investments into corporate bonds, potentially risky areas such as stock investment and trading, real estate sector, especially the provision of credit for the purpose of real estate investment and trading, focusing on controlling the concentration of credit on a few large customers/groups of customers, large-scale projects, hi-end segments, etc.
The credit institutions should also continue to promote the implementation of the interest rate support program in line with Decree No. 31/2022/ND-CP dated May 20, 2022 of the Government on the interest rate support package from the State budget to provide loans to enterprises, cooperatives and household businesses; and Circular No. 03/2022/TT-NHNN dated May 20, 2022 of the SBV providing guidance for the commercial banks’ implementation of the interest rate support package in line with Decree No. 31/2022/ND-CP.
The SBV Governor also requested the credit institutions to further cut down on their operating costs, administrative procedures, unnecessary expenses in order to create more space to further reduce their lending interest rates as instructed by Resolution No. 43/2022/QH15 dated January 11, 2022 of the National Assembly on the fiscal and monetary policies to support the program of socio-economic recovery and development, and the instructions of the Government and the Prime Minister.
The SBV will follow closely any credit institutions that continue to raise their interest rates and will take sanctioning measures against these institutions.
LK