The State Bank of Vietnam (SBV) requires credit institutions with room to actively disburse loans for production and business, especially in priority areas.
|Commercial banks asked to further lend for production and business |
SBV's request came as an official dispatch to credit institutions and foreign bank branches on credit growth in 2022.
Accordingly, the SBV requires credit institutions that still have room to actively disburse loans into production and business, especially in priority fields such as agriculture, rural areas, export, small and medium-sized enterprises, supporting industries, high-tech enterprises, and other fields that are drivers for economic growth.
In addition, credit institutions must ensure stable liquidity, safe banking operations, and strictly control credit from potentially risky areas.
Going forward, the SBV will provide appropriate management solutions following the government's policy and demands of commercial banks and enterprises.
In 2022, the SBV sets a credit growth target of 14 per cent. By the end of August 2022, the credit growth of the economy reached nearly 10 per cent. Because numerous commercial banks ran out of room, at the beginning of September 2022, the SBV increased the credit limit for 15 commercial banks by 1 to 4 per cent. The bank's credit room adjustment is based on commercial banks' application and rating scores.
The announcement and adjustment of credit growth for credit institutions are based on assessing their performance, controlling inflation, stabilising the money market, and encouraging credit institutions to enhance their business administration operational safety, and contributing to a healthy banking system.
The SBV also affirmed further plans for creating favourable conditions for people and businesses to access bank credit, contributing to economic recovery.
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To stabilise the currency rate in the face of fluctuations in the international market, the State Bank of Vietnam (SBV) early last week raised the operating interest rate for the second time in a month.
| ||SBV adjustments calm liquidity of currency |
While the problem of the VND’s liquidity has been stabilised, the economy is still facing challenges regarding macro-stability and exchange and interest rate pressure, according to financial experts.
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Most of the listed commercial banks in the country recorded a sharp increase in the loan/deposit ratio (LDR) at the end of the third quarter of 2022 compared to last year.