Banks with almost no credit room are granted additional credit by the State Bank

Banks with good credit growth rates have their room expanded by the State Bank - Photo: QUANG DINH

Loosening room for banks to increase credit effectively

The State Bank has just sent a document to credit institutions about credit growth in 2024.

In order to implement the direction of the Government and the Prime Minister on flexible, effective and timely credit growth management, meeting credit capital for the economy and controlling inflation, stabilizing the macro economy, banks with outstanding loan growth rate of 80% or more of the assigned target will have their credit limit increased based on their rating points.

The State Bank also noted that banks must not exceed the prescribed credit balance at any time during the year.

As for 100% foreign-owned and joint venture banks, outstanding credit balance at the end of 2024 must not exceed the granted level.

In addition to credit growth, the regulator also requires banks to strictly implement instructions on monetary and credit activities and regulations on credit granting.

Demand for stable interest rates

Banks are required to continue to maintain stable deposit interest rates and increase the implementation of solutions to reduce operating costs and simplify lending procedures.

The State Bank aims for a credit room of 15% in 2024 and allocates all room from the beginning of the year, in order to create favorable conditions for banks to proactively provide capital to meet economic growth needs.

However, as of August 26, the entire system's credit only reached 6.63%, much lower than the target set at the beginning of the year.

In addition, the State Bank said that credit growth among banks was uneven, with some banks experiencing low growth or even negative growth, while some banks increased close to their assigned targets.

Source: https://tuoitre.vn/ngan-hang-gan-het-room-tin-dung-duoc-ngan-hang-nha-nuoc-cap-them-20240829151348956.htm