SBV adjusts credit growth targets and measures of monetary policy management

12/07/2023 12:07

Having closely followed the Resolutions of the National Assembly, the guidance of the Government and the Prime Minister, the State Bank of Vietnam (SBV) has managed the monetary policy in an active, flexible and effective manner in collaboration with the fiscal policy and other macro-economic policies in order to control the inflation, contributing to maintaining the macro-economic stability, supporting the economic growth.

 Accordingly, the SBV has managed to maintain an abundant liquidity to be ready to provide capital for the economic recovery and development. So far, the SBV has four times reduced the key interest rates; promulgated the Circulars on the rescheduling of debt payment and maintenance of the debt groups, creating favorable conditions for customers to continue their capital turnovers and to access new loans; directed the credit institutions to simplify the lending procedures. Thanks to those measures, the stability of the money and the forex markets has been maintained; the liquidity of the credit institutions has been ensured. As of June 30, 2023, the credit outstanding of the economy reached over VND 12,400 trillion, an increase of 4.73% as compared to that of 2022.

Right from the beginning of 2023, based on the targets for the economic growth and the inflation as set by the National Assembly and the Government, the SBV had set the credit growth rate target at about 14-15%, with appropriate adjustments in alignment with the practical situations. In the context when the economic growth rate in the first half of 2023 was lower than the established target, and the difficulties with the capital sources for the economy, implementing the Government’s and the Prime Minister’s directions on resolving the difficulties to promote production and business operations, as well as to maintain the macro-economic stability, promoting the economic growth in parallel with the synchronous implementation of other monetary tools and policies, the SBV has decided to adjust the credit growth targets for the credit institutions in order to provide more credit resources to promptly meet the capital demand of the economy, while still paying high attention to the inflation risks.The adjustments of the credit growth targets in 2023 have been conducted based on the requests by the credit institutions, the assessments of the operational performance, the financial capabilities, the governance and the abilities of extending safe and sound credit of each credit institution. Accordingly, on July 10, 2023, the SBV has decided to adjust the credit growth target for 2023, which allows a common credit growth rate target of 14% applied to the entire banking system.
Also, the SBV has requested the credit institutions to: (i) continue to strictly and effectively implement Directive No.01/CT-NHNN of the SBV Governor on the key tasks of the banking sector in 2023; focusing on implementing strongly and determinedly the measures to promote the credit growth in a safe and effective manner, improving the credit quality, directing credit into production and business operations, the priority areas and sectors, and the drivers of the economic growth in accordance with the Government’s policy, meeting promptly the capital demands of the people and businesses; (ii) strengthen the reviews aimed at reducing the administrative procedures, simplifying and shortening the lending processes and procedures, ensuring full compliance with the applicable laws in order to enable customers to access bank loans, thereby supporting businesses and the people to recover their production and business operations, ensuring safe and sound banking operations, etc.
In the coming time, the SBV would continue to closely monitor the developments in the international and domestic markets and stand ready to support the liquidity for the credit institutions to provide the economy with the needed capital. Besides, the SBV would continue to monitor and supervise the credit growth situation in the entire banking sector in the remaining months of 2023 in order to conduct appropriate management measures./.
Source: sbv.gov.vn
 



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