The Government requested an inspection of the State Bank's credit growth management.

The Government Office has just sent an official dispatch to the Government Inspectorate and the State Bank of Vietnam (SBV) regarding the inspection of credit growth management.

Chính phủ yêu cầu thanh tra việc điều hành tăng trưởng tín dụng của NHNN - Ảnh 1. — Up to now, credit growth in 2023 is still low, not reaching the set target.

The document stated, Recently, the Government , the Government Standing Committee and Government leaders have issued many written instructions requesting the State Bank to synchronously, promptly and effectively implement solutions to manage credit growth.

Determine the credit growth limit for the whole year of 2023 in accordance with the practical situation, ensure sufficient credit capital to serve the economy and the safety of the credit institution system, increase access to credit for businesses and people, contribute to removing difficulties for production and business, and promote economic growth.

However, up to now, credit growth in 2023 is still low, not reaching the set target. Access to credit capital is still difficult, the allocation of credit growth limits to credit institutions is not really scientific, timely, and effective, and there are still comments from National Assembly deputies and experts.

In order to promptly strengthen state management and improve the efficiency of credit growth management, Deputy Prime Minister Le Minh Khai requested the Government Inspectorate to conduct an inspection of the performance of the assigned functions and tasks of the State Bank in credit growth management, building, assigning, and managing credit growth targets and limits in 2022 and 2023, and the management and supervision of credit growth implementation; report to the Prime Minister on the implementation in December and the inspection results in January 2024.

Previously, on November 29, the State Bank of Vietnam sent a document to credit institutions announcing the additional credit growth rate for credit institutions publicly and transparently according to specific principles and criteria.

Accordingly, credit institutions with outstanding credit balances reaching 80% of the announced credit target will be proactively granted additional credit limits based on the 2022 ranking; at the same time, priority will be given to credit institutions that focus credit on priority areas of the Government and have lowered lending interest rates to low levels in the recent past.

At the same time, the State Bank requires credit institutions to provide safe and healthy credit, support businesses, ensure credit growth in line with risk management capacity, capital mobilization ability, as well as balance sufficient capital sources for credit provision, continue to maintain stable mobilization interest rates and actively reduce lending interest rates, direct credit to production and business sectors, priority sectors and growth drivers according to the Government's policy, promptly meet the capital needs of people and businesses.

Strengthening the review and reduction of administrative procedures, simplifying lending processes and procedures, both ensuring compliance with regulations and creating favorable conditions for customers to access bank credit, supporting businesses and people to restore production and business.

Since the beginning of the year, the State Bank of Vietnam has determined that credit growth in 2023 will be around 14-15% and will be flexibly adjusted in accordance with developments and actual situations, creating favorable conditions for credit institutions to provide credit capital for the economy.

By July, the State Bank had allocated credit limits to the entire credit institution system with a total growth rate of 14.5%. However, the past 11 months have shown that economic growth is still facing difficulties, the economy's capital absorption capacity and credit demand are still weak. By November 22, the entire system's credit growth had only reached 8.21%, lower than the target set at the beginning of the year.

The credit growth of the credit institution system is uneven, some credit institutions have quite high growth, some credit institutions have low growth, even negative growth. Therefore, the State Bank proactively supplements credit limits, credit institutions do not need to request.

From now until the end of the year, the State Bank will continue to closely monitor market developments to have timely and appropriate management solutions, proactively supplement limits, and be ready to support liquidity to create conditions for credit institutions to provide credit capital for the economy.

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