Governor of the State Bank of Vietnam Nguyen Thi Hong (Photo: VietnamPlus Speaking at an online conference to boost credit of the banking sector on February 20, Hong stressed that this year, credit institutions must keep credit growth close to reality. It is important to continue to cut down operation costs, thereby reducing lending interest rates for people and businesses.
According to her, propelling credit growth is the key task in 2024 to ensure ample capital for the economy.
This year, the central bank will steadfastly follow the Government and Prime Minister’s directives on prioritising support for growth coupled with macro-economic stability and inflation control.
Aligned with the targeted economic growth of around 6-6.5% and inflation of about 4-4.5% set by the National Assembly and the Government, the SBV aims for a credit growth of around 15% this year, subject to adjustments.
Director of the SBV Department of Credit for Economic Sectors Ha Thu Giang reported that after accelerating strongly to reach 13.71% in the last weeks of 2023, credit growth of the banking system in the first month of this year decreased by 0.6% against the end of 2023.
As of January 31, deposit and lending interest rates continued to show a downward trend, falling by 0.15% and 0.25% a year, respectively, compared to those in late 2023.
The State Bank of Vietnam requests to promote credit growth in the first months of the year. (Photo: VietnamPlus) She also pledged efforts to streamline loan procedures and create favourable conditions for firms and residents to access capital in support of production and daily lives, thereby contributing to curbing loan shark practices.
To boost credit growth, instead of only allocating a part of credit growth quota for banks at the beginning of the year as previously, the SBV this year has assigned the entire credit growth target of 15% for banks in early January.
Director of the SBV Department of Credit for Economic Sectors Ha Thu Giang (Photo: VietnamPlus) General Director of Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) Nguyen Thanh Tung said that the bank's credit by the end of January dropped 2.3% from the figure at the end of 2023.
The reason is that growth in both retail and wholesale credit declined due to gloomy economic situation, difficulties in production and business, and decreasing incomes, he explained.
Tung said that in the coming time, Vietcombank will continue to offer loans at interest rates lower than the general market level, to support businesses and people during the current difficult period./.
VNA
