Loosen credit growth targets

The State Bank of Vietnam (SBV) has announced an adjustment to increase the credit growth target for 2024 for credit institutions (CIs) according to specific principles, ensuring publicity and transparency. According to the State Bank, this adjustment was made under the condition that inflation was well controlled below the target set by the National Assembly and the Government and to implement the direction of the Government and the Prime Minister on flexible and effective credit growth management, promptly meeting capital needs for the economy, supporting production and business development.

The State Bank demands that credit institutions diligently follow the directives of the Government, the Prime Minister, and the State Bank itself. They must effectively implement solutions regarding credit activities to enhance business efficiency, ensure the safety of the financial system, and stabilize the monetary market. Ensure safe and effective credit growth, direct credit into production, business, priority sectors and economic growth drivers. Continue to have policies to remove difficulties in accessing credit for businesses and people. Continue to maintain stable deposit interest rates and make further efforts to reduce lending interest rates through cost reduction, simplification of administrative procedures, increased application of information technology, and digital transformation.

In the coming time, the State Bank will continue to closely monitor domestic and international market developments, be ready to support liquidity to create favorable conditions for credit institutions to provide credit to the economy and promptly have appropriate monetary policy management solutions.

Beginning in 2024, the State Bank set a credit growth target of approximately 15% for credit institutions. As of November 22, 2024, the overall credit has increased by 11.12% compared to the end of 2023. In Binh Duong, by the end of December 2024, the total mobilized capital is estimated at VND 337,000 billion, an increase of 9.25%; outstanding loans are estimated at VND 354,000 billion, an increase of 7.46% compared to 2023.

Reported by Thanh Hong - Translated by Ngoc Huynh