State Bank grants additional credit limits to banks

On November 29, the State Bank of Vietnam sent a document to credit institutions (CIs) announcing the additional credit growth rate for CIs publicly and transparently according to specific principles and criteria. Accordingly, CIs with outstanding credit to date reaching 80% of the announced credit target will be proactively supplemented with an additional limit based on the 2022 ranking, while giving priority to CIs that focus credit on priority areas of the Government and have lowered lending interest rates to low levels in the recent past.

Some banks with fast credit growth will be granted additional credit limits.

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 capacity, 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. Strengthen review, cut administrative procedures, simplify 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 has determined that the credit growth rate 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 2023, the State Bank has 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 capital absorption capacity and credit demand of the economy are still weak. By November 22, the credit growth of the entire system had only reached 8.21%, lower than the target set at the beginning of the year. The credit growth rate 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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