State Bank allocates full credit growth limit for the year

Today, the State Bank has further allocated credit growth limits for banks to nearly reach the annual ceiling of 14%.

Since the beginning of the year, the State Bank has set a target of 14-15% for credit growth this year, with adjustments to suit the reality. At a press conference held by the State Bank at the end of June, Deputy Governor Dao Minh Tu said that in February, the agency had assigned a credit target of 11% to commercial banks. During this period, the management agency continued to assign the remaining growth quota for this year to banks, up to 14%.

In recent years, the State Bank has often divided the credit room expansion into several phases, falling at the beginning, middle and end of the year. Rarely does this agency allocate all credit limits right from the middle of the year.

According to the State Bank, this "room" allocation helps banks promptly provide more credit capital for the economy . This move is part of the operator's efforts to remove difficulties for production and business under the Government's direction in the context of economic growth in the first 6 months of the year being lower than expected.

At the end of June, the total outstanding loans of the entire system were VND12.4 trillion, up just over 4.7% compared to the end of 2022. The main reason was not due to a lack of "room" but due to businesses reducing their production and business scale in the context of poor output and high interest rates. Meanwhile, at the same time last year, credit increased by 8-9% compared to the beginning of the year, many banks reached the growth limit.

The annual room allocation is carried out by the manager based on the proposal of each credit institution, the operational situation, financial capacity, management and healthy credit expansion ability of each unit, ensuring liquidity and operational safety of the entire system.

The State Bank requires banks to resolutely have solutions to promote safe and effective credit growth, directing credit to production and business sectors, priority sectors and growth drivers according to the Government 's policies.

In the coming time, this agency said it will continue to closely follow domestic and international market developments, ready to support liquidity to create favorable conditions for banks. At the same time, the operator will monitor and review the credit growth situation of the entire system in the last months of the year to have appropriate management solutions.

Quynh Trang

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