The State Bank of Vietnam (SBV) has just announced an adjustment to the credit growth target for credit institutions in 2023. Specifically, the SBV has decided to increase the credit target (room) for the entire banking system to about 14%.
The State Bank of Vietnam said that, closely following the National Assembly's Resolution and the direction of the Government and the Prime Minister, the agency has operated monetary policy flexibly and effectively, coordinated synchronously with fiscal policy and other macroeconomic policies to control inflation and support reasonable economic growth.
Accordingly, the State Bank has operated to maintain abundant liquidity, ready to provide capital for economic recovery and development, continuously adjusted down the operating interest rate 4 times, issued a circular to restructure debt repayment terms and maintain the debt group, creating conditions for customers to continue to rotate capital and access new loans, and directed credit institutions to review and simplify lending procedures.
By June 30, 2023, the economy's outstanding credit balance reached over VND 12.4 million billion, an increase of 4.73% compared to the end of 2022.
From the beginning of 2023, based on the economic growth and inflation targets of the National Assembly , the Government and the State Bank of Vietnam aim for credit growth in 2023 of about 14-15%, with adjustments appropriate to the actual situation.
In the context of economic growth in the first 6 months of the year being lower than the proposed scenario, economic capital sources facing difficulties, implementing the direction of the Government and the Prime Minister in removing difficulties for production and business, stabilizing the macro-economy, promoting growth; in parallel with the synchronous implementation of other monetary policy solutions and tools, the State Bank adjusted the credit growth target for credit institutions to provide more credit capital to promptly meet the needs of the economy but not subjective to inflation risks.
The State Bank of Vietnam has decided to increase the credit target for the entire banking system by about 14%.
The adjustment of credit growth targets for credit institutions is carried out by the State Bank based on the credit institutions' proposals, operational situation, financial capacity, governance and ability to expand healthy credit of each credit institution, ensuring liquidity and operational safety of the credit institution system.
Accordingly, on July 10, 2023, the State Bank adjusted the credit growth target for 2023 for credit institutions to a system-wide level of about 14%.
The SBV requires credit institutions to continue to seriously and effectively implement Directive 01 dated January 17, 2023 of the Governor of the SBV on key tasks of the banking sector in 2023; focus on strongly and drastically implementing solutions to promote safe and effective credit growth, improve credit quality, 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.
In addition, it is necessary to strengthen the review, cut down on administrative procedures, simplify and shorten lending processes and procedures, ensure compliance with legal regulations to facilitate customers' access to bank credit, thereby actively supporting businesses and people to restore production and business, ensuring the safe operations of credit institutions, etc.
In the coming time, the State Bank will continue to closely follow domestic and international market developments, ready to support liquidity to create conditions for credit institutions to provide credit to the economy, and at the same time monitor and review the credit growth situation of the entire system in the last months of the year to have appropriate management solutions .
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