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SBV may consider lifting credit growth targets: Analysts

The central bank may consider lifting credit growth targets for several banks to support economic growth, according to Bao Viet Securities.
SBV may consider lifting credit growth targets: Analysts ảnh 1Bao Viet Securities said the central bank may consider lifting credit growth targets for several banks to support economic growth (Photo: VNA)

Hanoi (VNA) - Thecentral bank may consider lifting credit growth targets for several banks tosupport economic growth, according to Bao Viet Securities.

Bao Viet Securities analysts said in a report that there was immense pressureon the Government to loosen monetary policy as Vietnam was determined toachieve the GDP growth target of 6.7 percent for the full year, however, thefiscal policy was struggling with disbursement of public investment.

Until the end of May, disbursement of public investments reached 88 trillionVND, only equivalent to 30.6 percent of the full year’s estimate, according tothe General Statistics Office.

[Banking sector sees 6.53 percent in credit growth]

Bao Viet Securities said when fiscal policy did not support growth well,pressure would intensify on the monetary policy. Lifting credit growth targetsfor several banks might be an option to consider, the analysts said.

When the monetary policy was loosened, the liquidity of the banking systemwould be increased, which would create favourable conditions for Governmentbond issuance. The State Treasury, to date, has completed more than 70 percentof the bond issuance plan of 2017.

The General Statistics Office revealed that credit growth reached 7.54 percentin the first six months of this year. The central bank set credit growth targetat 18 percent this year.-VNA
VNA
#central bank #State Bank of Vietnam #credit growth targets #economic growth #Bao Viet Securities #loosen monetary policy #GDP growth target of 6.7 percent #fiscal policy #banking system #Government bonds #Vietnam #Vietnamese #Vietnam news #updated Vietnam news #Vietnamplus #Vietnam News Agency
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