According to the State Bank of Vietnam's (SBV) report on the implementation of Resolution No. 62/2022/QH15 on questioning activities at the 3rd Session of the 15th National Assembly , it has not yet been possible to completely end the practice of assigning credit growth targets.
The State Bank of Vietnam (SBV) points out that, given the heavy burden of supplying capital to the economy still primarily falls on the banking credit channel, failure to control credit growth could lead to a repeat of the negative consequences seen before 2011, causing macroeconomic instability, increased inflation risks, and higher bad debt risks, threatening the safety of the banking system.
Meanwhile, the credit institution system is still in the process of restructuring and handling bad debts, gradually improving governance standards in accordance with international practices.
Therefore, the State Bank of Vietnam believes that maintaining the credit limit tool is necessary to ensure the safety of the banking system's operations. "The removal of this measure needs to be done cautiously, with an appropriate roadmap, ensuring the necessary conditions are met when sufficient control and replacement measures are in place, and gradually implemented in accordance with market conditions," the State Bank of Vietnam affirmed.
Prior to 2023, the State Bank of Vietnam (SBV) assigned credit growth targets to each credit institution. To continue implementing the National Assembly and Government 's policy of gradually abolishing credit growth targets, in August 2024, the SBV announced several groups of credit institutions that are now allowed to independently manage their credit growth in 2024.
According to the State Bank of Vietnam, credit growth to date has remained safe, efficient, and healthy, limiting the increase and emergence of bad debts, ensuring the safety of credit institutions' operations; directing credit towards production sectors and priority areas - drivers of economic growth; and maintaining strict control over sectors with potential risks.
As a result, by September 30, 2024, credit across the entire system increased by 9% compared to the end of 2023 (compared to a 6.92% increase in the same period). Currently, credit institutions still have considerable room for growth in credit to provide lending capital to the economy.
Source: https://vietnamnet.vn/vi-sao-ngan-hang-nha-nuoc-chua-the-bo-room-tin-dung-2455272.html
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