On May 30, the State Bank of Vietnam (SBV) issued document No. 4462/NHNN-CSTT requesting credit institutions and branches of foreign banks (collectively referred to as CIs) to implement several measures regarding credit and interest rates.
Specifically, the SBV instructed CIs to continue vigorously implementing cost-saving measures, simplifying lending procedures, enhancing the application of information technology, and digital transformation in lending processes, aiming to strive for a 1-2% annual reduction in lending interest rates.
Additionally, the SBV mandated that CIs allocate capital to traditional growth drivers, emerging sectors, green transformation, circular economy, social housing, and other priority areas to support businesses and individuals in developing production and business, enhancing access to bank credit in accordance with the directives of the Government and the Prime Minister.
They were also directed to maintain stable and reasonable deposit interest rates, consistent with capital balance capabilities, credit expansion, risk management capabilities, and stable monetary and interest rate market conditions.
Furthermore, CIs were required to continue deploying effective credit growth solutions, accurately meeting targets, promptly meeting the credit capital needs of the economy.
Focusing on priority sectors, and striving to achieve system-wide credit growth of 5-6% by the end of the second quarter of 2024.
The SBV also emphasized the importance of closely monitoring credit in potentially risky sectors to ensure safe and efficient credit operations.
Previously, the SBV had issued directives requiring its provincial branches and CIs to actively participate in bank-enterprise connection programs.
roactively coordinate with local Party committees and authorities to dialogue with customers, grasp and promptly address difficulties and obstacles, thereby expanding access to credit for businesses and individuals.
These “hot” directives from the SBV are in line with the Government’s directives in Official Letter No. 18 dated March 5, Official Letter No. 32 dated April 5, Directive No. 14 dated May 2, Conclusion Announcement No. 231/TB-VPCP dated May 18, and continue to implement tasks outlined in Directive No. 01 dated January 15 on organizing and implementing key tasks of the banking sector in 2024.
