State Bank of Vietnam sets 15% credit growth target

By Quynh Trang   January 2, 2024 | 08:17 pm PT
State Bank of Vietnam sets 15% credit growth target
An employee counts Vietnamese banknotes at a bank in Ho Chi Minh City. Photo by VnExpress/Thanh Tung
The State Bank of Vietnam has set banks a credit growth target of 15% this year, up one percentage point from last year’s target.

In the event, credit growth in 2023 was only 11% as of Dec. 21.

The central bank has also given each bank a fixed growth target for full-year 2024. In the past it used to divide the year into shorter periods, forcing banks to demand a rise in the cap once each target is achieved.

Domestic banks cannot exceed the target at any time during the year, while foreign banks must not exceed it by the end of the year.

The central bank also warned banks against lending at low interest rates to their executives and the latter’s associates.

Prime Minister Pham Minh Chinh in November ordered the central bank to improve its credit policy to ensure credit is available to everyone in a timely manner.

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