SBV gives the green light to increase credit

Commercial banks and other credit institutes whose credit growth reached 80% of the targets set by the central bank at the beginning of the year, will have their credit limit increased, stated the State Bank of Vietnam (SBV).
A customer deposits a large amount of cash at a commercial bank in Hanoi. (Photo: VNA)

A customer deposits a large amount of cash at a commercial bank in Hanoi. (Photo: VNA)

The Central bank said in a statement that increasing the limit is part of the SBV’s proactive measures, and commercial banks and other credit institutes need not request it.

Meanwhile, the Central bank advised commercial banks and other credit institutes to comply with its directives and regulations, saying they were designed to enhance business efficiency, ensure system safety and stabilise the monetary market

Credit growth must be carefully planned to ensure safe and sustainable development of the market, to minimise bad debts and to protect the system. Available credit should prioritise production industries, growth-driving pillars and economic sectors of strategic importance. Sectors that were determined as high-risk must be closely monitored.

"In the coming months, the SBV will continue watching domestic and international market developments, be ready to support the market’s liquidity while creating favourable conditions for commercial banks and other credit institutes to increase credit and implement suitable monetary policies," said the SBV.

Le Thu Uyen, a banking analyst at VPBank Securities (VPBankS), said that the Central bank’s policy of increasing credit limits allows banks to compete aggressively for credit room and market share. As a result, interest rates may become more favourable, benefiting borrowers but potentially leading to a slight decrease in banks’ net interest margin.

Commercial banks and other credit institutions that have reached 80% of their allowed credit room since the beginning of the year will have it adjusted, depending on their credit ratings.

Commercial banks, including ACB, HDBank, LPBank and Techcombank, were reported to have reached or were about to fulfil the 80% requirement, and will have their credit room increased from 18% to 18.7%.

As of August 26, the market’s credit growth increased by 6.63% compared to the end of 2023. The Government has set a target of 15%, meaning an additional 8.37%, or the equivalent to over VNĐ1.135 quadrillion can be added until the end of the year./.

Source: VNS
en.vietnamplus.vn

Related News

Latest News

Big 4 banks estimate positive business results in 2024

Big 4 banks estimate positive business results in 2024

One of the country’s biggest banks expects results to be the best for four years.
Flexible and proactive when exchange rates still fluctuate in 2025

Flexible and proactive when exchange rates still fluctuate in 2025

VCN - In the last days of 2024, as many forecasts, the US Federal Reserve (Fed) continued to cut interest rates, pushing the USD index up, creating pressure on domestic exchange rates. Therefore, domestic exchange rate management policies need to continue to be flexible and appropriate, thereby supporting businesses in import and export.
Issuing government bonds has met the budget capital at reasonable costs

Issuing government bonds has met the budget capital at reasonable costs

VCN - According to the State Treasury's report, capital mobilization through the issuance of government bonds has ensured mobilization to meet the capital needs of the state budget at reasonable costs.
Bank stocks drive market gains as VN-Index closes final Friday of 2024 on a positive note

Bank stocks drive market gains as VN-Index closes final Friday of 2024 on a positive note

Việt Nam’s stock market ended the final Friday of 2024 on a positive note, with banking stocks leading the rally and VN-Index successfully surpassing the 1,275-point mark.

More News

Banks still "struggling" to find tools for handling bad debt

Banks still "struggling" to find tools for handling bad debt

VCN - According to financial experts, the rising trend in bad debt continues to pose significant challenges to debt resolution and recovery efforts at credit institutions (CIs).
Forecast upbeat for banking industry in 2025

Forecast upbeat for banking industry in 2025

In a recent report, ACB Securities Companies analysts said that the net interest margin (NIM) of banks in 2025 will increase by five basis points over 2024.
Ensuring financial capacity of bonds issuers

Ensuring financial capacity of bonds issuers

VCN - The Ministry of Finance is finalizing the draft Decree amending and supplementing Decree No. 155/2020/ND-CP detailing the implementation of a number of articles of the Securities Law. The amendment aims to continue to perfect the legal framework and overcome some shortcomings arising in the practice of the securities market.
Finance ministry announces five credit rating enterprises

Finance ministry announces five credit rating enterprises

One more company has been granted the certificate of eligibility since August.
The capital market will see positive change

The capital market will see positive change

VCN – Vietnam’s capital market has more balanced, harmonious and sustainable. However, besides the achievements, the market still faces many potential challenges. In order for the capital market to become an effective and sustainable capital mobilization channel, further improving the quality of goods and diversifying investors in the market is a key direction.
Corporate bond issuance value rises by 60 per cent

Corporate bond issuance value rises by 60 per cent

In the first 11 months of 2024, the total value of corporate bond issuances reached nearly VNĐ403 trillion, a 60 per cent increase year-on-year.
Slower mobilization than credit may put pressure on interest rates

Slower mobilization than credit may put pressure on interest rates

VCN - According to the latest data from the State Bank of Vietnam (SBV), deposits in the banking system as of the end of September 2024 reached more than 14 million billion VND, an increase of 4.9% compared to the beginning of the year, but the rate was still slower than credit, which could put pressure on interest rates.
Fed’s foreseen rate cuts affect foreign exchange rate

Fed’s foreseen rate cuts affect foreign exchange rate

After the Fed’s move, the US dollar index (DXY) on December 19 hit nearly 108, the highest level in the past year.
Untying the knot for green finance

Untying the knot for green finance

VCN - Green finance is a crucial resource for greening businesses. Completing the policy framework for green finance is urgently needed to unlock this capital flow.
Read More

Your care

Latest Most read
Big 4 banks estimate positive business results in 2024

Big 4 banks estimate positive business results in 2024

One of the country’s biggest banks expects results to be the best for four years.
Flexible and proactive when exchange rates still fluctuate in 2025

Flexible and proactive when exchange rates still fluctuate in 2025

In the last days of 2024, as many forecasts, the US Federal Reserve (Fed) continued to cut interest rates, pushing the USD index up, creating pressure on domestic exchange rates.
Issuing government bonds has met the budget capital at reasonable costs

Issuing government bonds has met the budget capital at reasonable costs

VCN - In summary of 2024, the State Treasury report said that in the context of many fluctuations in the global economic situation, the disbursement rate of domestic public investment capital is still slow, and the state budget balance is high, the State
Bank stocks drive market gains as VN-Index closes final Friday of 2024 on a positive note

Bank stocks drive market gains as VN-Index closes final Friday of 2024 on a positive note

Việt Nam’s stock market ended the final Friday of 2024 on a positive note, with banking stocks leading the rally and VN-Index successfully surpassing the 1,275-point mark.
Banks still "struggling" to find tools for handling bad debt

Banks still "struggling" to find tools for handling bad debt

VCN - According to financial experts, the rising trend in bad debt continues to pose significant challenges to debt resolution and recovery efforts at credit institutions (CIs).
Mobile Version