A representative of the State Bank said that banks' liquidity is currently very abundant, but in reality, in early 2024, after 2 months, credit growth was slower than the same period of previous years.
At the regular Government press conference in February 2024 on the afternoon of March 2, answering the press about the reasons for the low credit growth situation and solutions to overcome it in the coming time, Deputy Governor of the State Bank of Vietnam (SBV) Pham Thanh Ha said: The State Bank has assigned all credit targets of 15% to credit institutions by December 31 so that credit institutions can be proactive in credit growth.
In fact, in early 2024, after 2 months, credit growth was slower than the same period of previous years, with the fact that liquidity was abundant but credit growth was slow compared to the same period of previous years.
According to Mr. Pham Thanh Ha, the common reason is seasonal factors. January and February are Tet months, so credit activities will decrease and borrowing activities will not grow as much as in the fourth quarter of last year. In addition, the world economy has not really improved, our main markets have not developed strongly, affecting output and export factors, while the domestic market is still difficult, so demand for credit has also decreased.
Presenting solutions, Mr. Pham Thanh Ha said: In early February, the State Bank of Vietnam issued a document directing credit institutions to focus on promoting credit growth solutions, strengthening review and simplifying lending procedures to increase customers' access to capital; focusing on enhancing digital transformation applied to credit processes to increase access to capital and more widely popularize banking credit activities.
At the same time, organize an industry-wide conference to boost bank credit, support businesses and promote credit growth.
In the first two months of the year, credit growth was slower than the same period of previous years. Illustrative photo
In the coming time, the State Bank will continue to review documents under the newly issued Law on Credit Institutions; review guiding documents and decrees to ensure amendments in accordance with the decrees and Laws, increasing access to credit capital for borrowers.
On the lender side, liquidity is abundant and banks are ready to provide capital for the economy. However, there needs to be more synchronous policy coordination among agencies to enhance businesses' access to credit.
On the borrower side, the State Bank also encourages enterprises to actively implement solutions to restructure their operations, have more feasible investment or production and business projects, and demonstrate the feasibility of their projects; be transparent, and enhance financial capacity so that lenders (credit institutions, commercial banks) can appraise and provide loan services to borrowers conveniently in the coming time.
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