Vietnam’s credit growth in 2024 set at 15%

High credit growth target

On December 31, 2023, the State Bank (SBV) issued a document to credit institutions on the credit growth plan for 2024.

Accordingly, closely following the Resolution of the National Assembly and the direction of the Government and the Prime Minister, the State Bank set the credit growth target for 2024 at about 15%, however, the target will be flexibly adjusted in accordance with developments and actual situations.

This growth target is much higher than the goal set for 2023.

To create favorable conditions for credit institutions to provide credit capital to meet economic growth needs, the State Bank of Vietnam assigned the credit growth target of 15% and required credit institutions to control credit growth this year.

This is to ensure a timely supply of enough credit capital to serve the needs of businesses and people, contributing to promoting economic growth, stabilizing the macroeconomy, and ensuring major balances of the economy.

Credit institutions are required to control credit growth, including exchange rate adjustments, from exceeding the above credit balance throughout 2024.

According to the regulations of the State Bank, outstanding credit to control credit growth targets include lending, discount and rediscount of negotiable instruments and other valuable papers, financial leasing, factoring, credit card issuance, and buying and investing in corporate bonds, etc.

The SBV requires banks to implement safe credit growth, in accordance with the risk management capacity, liquidity situation and capital mobilization ability of credit institutions, ensuring credit quality.

At the same time, it is strictly prohibited to grant credit that is not in accordance with the law, to the wrong subjects, and to grant credit to the board of directors, executive board and related persons of credit institutions and businesses in the system with preferential interest rates while people and businesses with legitimate and legal needs have difficulty accessing credit capital.

In addition, the State Bank requires credit institutions to continue to maintain stable deposit interest rates and strive to reduce lending interest rates.

Based on the appropriate assessment of developments and the actual situation, the State Bank will adjust the credit growth target for 2024 and proactively adjust the credit growth target of each credit institution, creating conditions for credit institutions to provide sufficient and timely credit capital to the economy.

Accordingly, credit institutions do not need to submit a written request to adjust credit growth targets to the State Bank of Vietnam.

Source: SBV, theleader

Compiled by VBI