After the recent increase in credit limit, the State Bank of Vietnam (SBV) has granted 13.6 percent of the total 14 percent credit room in 2022. The SBV continues to prioritize inflation control and macroeconomic stability, maintaining low lending interest rates to support businesses and economic recovery.
About 15 commercial banks have just been allowed to expand their credit limit by 1 percent to 4 percent by the State Bank, but this time expansion has not satisfied the market's thirst for capital after a long wait.
The State Bank of Vietnam has announced adjustment of credit limit for 2022 for fifteen commercial banks by 1 percent to 4 percent, and at the same time requested banks to step up disbursement of the 2-percent interest rate support package as per Decree 31/2022/ND-CP.
The last two quarters of the year are the time when production, business activities, and consumer demand typically see an uptick. As a result, commercial banks are actively introducing interest rate incentive programs to boost credit demand.
From October 2022, Vietnam's leaders aimed at a stable macro policy with a focus on controlling inflation. However, from the beginning of April 2023 until now, the Government is determined to stimulate domestic demand.
The Government Office has issued the conclusion of the Government Standing Committee in a meeting about missions and measures to stabilize the macro-economy, control inflation, promote growth, and ensure major balances in the national economy.
According to the State Bank of Vietnam (SBV), by the beginning of July, the whole economy's credit reached VND11.4 quadrillion, up 9.35 percent, while it only increased by about 6 percent in the same period last year. In this context, Governor of the State Bank of Vietnam Nguyen Thi Hong has recently sent a message on maintaining the orientation of credit growth of 14 percent in 2022 and, at the same time, gave many guidelines to help enterprises access the 2-percent interest rate support loan package.
In the context of credit limitations in banks, Vietnam Thuong Tin Commercial Joint Stock Bank (VietBank) has just launched a preferential loan program of up to VND8,000 billion (US$346 million) dedicated to individual customers serving livelihood demands and business activities.
The discussion for granting credit limits to commercial banks heated up at the third session of the fifteenth National Assembly when delegate Mr. Trinh Xuan An from Dong Nai asked the Governor of the State Bank of Vietnam to explain the rationality behind the credit room allocation mechanism, and whether it interfered with bank operations.
At a meeting with Ho Chi Minh City on the task of socio-economic development, disbursement of public investment capital, and the progress of key projects, Prime Minister Pham Minh Chinh said that it is necessary to design a tool to control investment activities in corporate bonds.