­­State Bank assigns credit growth target of 15% for banks

The SBV said that sticking to the Resolution of the National Assembly, the direction of the Government and the Prime Minister, the SBV aims for credit growth in 2024 of about 15% and flexibly adjusts in accordance with actual developments and situations.

In order to create favorable conditions for credit institutions to provide credit capital to meet the needs of economic growth, the SBV assigned all credit growth targets oriented at 15% and requested credit institutions to control credit growth in 2024.

The principle of calculating the growth target is stipulated by the SBV according to the formula: Maximum credit balance until 31/12/2024 = Credit balance on 31/12/2023 + [Ranking score in 2022 x 3.5% x (Credit balance on 31/12/2023 - Credit balance exceeds the credit growth target announced by the SBV in 2023 (if any))] - Sales of credit balances to be sold in 2024 and have not collected up to the time of calculating the credit balance (if any).

By the end 2024, banks with 100% foreign capital, joint venture banks controlling credit growth (including exchange rate adjustment factor) shall not exceed the above-mentioned credit balance. The remaining credit institutions control credit growth (including exchange rate adjustment) not to exceed the above-mentioned credit balance throughout 2024.

Outstanding credit to get a control credit growth targets include: loans; discounting, re-discounting negotiable instruments and other valuable papers; financial leasing; factoring; payments on behalf of individuals or organizations in case the guaranteed individual or organization fails to fulfill its obligations when payment is due; credit card issuance; purchase and investment in corporate bonds (excluding bonds of Vietnam Asset Management One Member Limited Liability Company); other credit granting operations approved by the SBV.

The SBV requests credit institutions to implement safe credit growth, in accordance with the risk management capacity, liquidity situation and capital mobilization capacity of credit institutions, secure credit quality, use capital for proper purposes and efficiency, limit bad debts from increasing and arising, ensure the operation safety of credit institutions.

At the same time, it is strictly forbidden to grant credit against the law, wrong objects, the granting of credit to the board of directors, executives and related persons of credit institutions, ecosystem enterprises, backyard enterprises... with preferential interest rates while people and businesses with legitimate and legal needs face difficulties in accessing credit capital.

Credit institutions must continue to maintain the stability of deposit interest rates and strive to reduce lending rates. Regularly review to cut and reduce administrative procedures, simplify credit granting processes and procedures, ensure compliance with legal laws, create favorable conditions and support businesses and people to access bank credit.

In 2024, the SBV will closely monitor developments and actual situation to manage credit growth proactively, flexibly, promptly, effectively and scientifically, closely following the situation to thereby supporting the system of credit institutions to ensure sufficient supply of credit capital to serve the economy and the safety of the credit institution system, associated with promoting priority for economic growth, macroeconomic stability, inflation control.

On the basis of assessing developments and the actual situation appropriately, the SBV will adjust the increase of the oriented credit growth target in 2024 and actively adjust the credit growth target of each credit institution to send to each one, creating conditions for these to provide sufficient and timely credit capital for the economy.