The State Bank of Vietnam (SBV) has just announced an adjustment to increase the credit growth target (TTTD) for 2024 for credit institutions (CIs), implemented according to specific, public and transparent principles. Notably, the SBV proactively implemented this additional limit, without requiring CIs to request it.
This move is part of the SBV's monetary policy direction, closely following the National Assembly's Resolution and the direction of the Government and the Prime Minister. The SBV continues to adhere to the goal of controlling inflation, stabilizing the macro-economy and supporting reasonable economic growth, through close coordination of fiscal policy and other macroeconomic policies.
Flexible credit growth adjustment
Since the beginning of 2024, the SBV has assigned a credit growth target of about 15% to credit institutions according to Directive No. 01/CT-NHNN dated January 15, 2024. By August 28, 2024, the SBV has proactively adjusted this target to meet the capital needs of the economy. According to statistics, by November 22, 2024, credit in the whole system increased by 11.12% compared to the end of 2023, lower than expected.
In the context of inflation continuing to be well controlled, under the targets set by the National Assembly and the Government, the State Bank of Vietnam has decided to further adjust the credit growth limit. This move aims to promptly meet capital needs for production and business activities, contributing to promoting economic development.
Ensure system safety and stability
Along with increasing credit limits, the SBV requires credit institutions to strictly comply with the instructions from the Government, the Prime Minister and the SBV. Credit institutions need to implement solutions to improve operational efficiency, ensure system safety, stabilize the monetary market, and at the same time direct credit to production and business sectors, priority sectors and economic growth drivers. For sectors with potential risks, the SBV requires strict control to limit the risk of instability.
In addition, the State Bank encourages credit institutions to continue implementing policies to support businesses and people to access credit more easily. At the same time, banks need to maintain stable deposit interest rates and reduce costs to reduce lending interest rates. Simplifying administrative procedures, enhancing the application of information technology and digital transformation are also emphasized.
Ready to support the market
In the coming time, the SBV will continue to closely monitor domestic and international market developments and is ready to support liquidity to facilitate credit institutions to provide timely credit to the economy. The SBV will flexibly implement monetary policy management solutions, in accordance with the practical context, ensuring the achievement of socio-economic development goals in 2024.
