On November 28, 2024, the State Bank of Vietnam (SBV) announced the adjustment of the credit growth targets for 2024 with increases applied to the credit institutions in accordance with the principles of specificity, ensuring the publicity and the transparency. These increases will be decided at the SBV’s discretion, without the need for a formal request by any credit institution.
SBV Headquarters
Following closely the Resolutions of the National Assembly, the instructions of the Government and the Prime Minister, the SBV has managed the monetary policy in an active, flexible and effective manner, in close collaboration with the fiscal policy and other macroeconomic policies in order to control the inflation, contributing to maintaining the macro-economic stability, and supporting the economic growth at an appropriate level.
Right from the beginning of 2024, the SBV had allocated the all-year credit limits to the entire system of credit institutions with the total credit growth rate of 15% as set in Directive No. 01/CT-NHNN dated January 15, 2024. On August 28, 2024, the SBV had proactively decided to adjust the credit growth targets applied to the credit institutions in 2024. As of November 22, 2024, the credit for the whole system had increased by 11.12% as compared to that of the end of 2023.
In the context that the inflation has been controlled at a lower level than the target set by the National Assembly and the Government, and implementing the instructions of the Government and the Prime Minister on managing the credit growth targets in a flexible, effective and timely manner, meeting the capital demands of the economy, supporting the production and business operations, on November 28, 2024, the SBV once more announced the adjustments of the credit growth targets for 2024, with increases applied to the credit institutions in accordance with the principles of specificity, ensuring the publicity and the transparency. These increases will be decided at the SBV’s discretion, without the need for a formal request by any credit institution.
Furthermore, the SBV has also requested the credit institutions to strictly implement the instructions of the Government, the Prime Minister, and the SBV; implement strongly the solutions for the credit operations with the aim of improving the business performance, ensuring a prudent banking system, and maintaining the stability of the money market; extend their credit in a safe and healthy manner, directing credit into the production and business operations, the priority areas and sectors, and the drivers of the economic growth, in accordance with the Government’s and the Prime Minister’s instructions; strictly control the potentially risky areas; continue to resolve the difficulties in accessing bank loans for businesses and the people; continue to maintain stably the deposit interest rates, and put more efforts into reducing the lending interest rates by cutting down on the operational costs, simplifying the lending procedures, enhancing the application of IT and the digital transformation.
In the coming time, the SBV would continue to closely monitor the developments in the international and domestic markets, standing ready to support the liquidity, and enabling the credit institutions to provide capital for the economy; and promptly conduct appropriate measures in relation to the monetary policy management.
Le Hang