Adjusting credit growth targets for banks
On the afternoon of July 15, the State Bank of Vietnam (SBV) had information to adjust credit growth targets for credit institutions. Several commercial banks have received decisions to adjust credit growth in 2021.
According to the State Bank, the adjustment of credit growth targets of credit institutions is to ensure principle of consistency to achieve the objectives of monetary policy management and implement the Government's policy of "controlling the pandemic while developing the economy".
The adjustment of credit growth targets is made on the basis of the request of the credit institutions, assessing the operation situation, financial capacity, management and ability to expand credit of each credit institution; Priority is given to credit institutions implementing the Government's policy and the State Bank's direction in reducing lending interest rates in order to share difficulties and accompany businesses and people.
In early 2021, the State Bank of Vietnam granted credit growth targets for credit institutions from 6.5 to 12% on average. As of June 2021, more than 10 commercial banks had reached the level of credit growth target granted and asked for an increase. Recently, the State Bank of Vietnam has decided to grant credit growth for some commercial banks from 8.5% to 12.1% after meeting some of the above conditions, especially the reduction of lending interest rates in order to share difficulties, accompany customers.
The SBV's monetary policy management motto is to be proactive, flexible, and closely coordinate with fiscal policy and other macroeconomic policies to achieve targeted inflation control, support stabilizing the macro-economy, contributing to the recovery of economic growth despite many difficulties and complicated developments of the Covid-19 pandemic.
The management of monetary policy has contributed to supporting the recovery of the domestic economy, GDP growth in the first six months of the year reached 5.64%, inflation was under control, the average of six months over the same period of 1.47%. The currency and foreign exchange markets remained stable, the liquidity of credit institutions was ensured, credit increased from the beginning of the year and higher than the same period last year, the interest rate level continued to decrease.
In order to contribute to the recovery of economic growth in the context of the adverse impact of the Covid-19 pandemic, and at the same time not being subjective to inflation risks, in parallel with the synchronous implementation of other monetary policies and solutions, the SBV adjusted credit growth targets for credit institutions to ensure the principle of ensuring consistency to achieve the objectives of monetary policy management and implementing the Government's policy of "controlling the pandemic while developing the economy".
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