Headquarters of the State Bank of Việt Nam in Hà Nội. — Photo cafef.vn

The State Bank of Việt Nam on Thursday announced it would increase credit growth target for credit institutions, for the second time this year.

Although total credit in the system has increased, it remains several per cent below the target set at the beginning of 2024.

The measure is being proactively implemented by the State bank, without loan requests from credit institutions, as inflation has been under control and below the target set by the National Assembly and Government.

It aims to provide timely capital to the economy and support production and business development.

Additionally, the State bank will maintain stable deposit interest rates and make further efforts to reduce lending rates by cutting costs and simplifying administrative procedures.

It will closely monitor domestic and international market developments and stand ready to create liquidity and support credit institutions in providing credit to the economy.

The State bank requires credit institutions to strictly follow the Government’s directives on flexible and efficient credit management, using credit measures to support businesses and stabilise the monetary market.

They are also encouraged to implement policies to ease access to credit for businesses and individuals.

This is the second credit growth adjustment that the State bank has implemented this year.

Credit growth target was set at approximately 15 per cent at the beginning of the year. On August 28, the State bank proactively increased the target.

As of November 22, total credit in the system had increased by 11.12 per cent compared to the end of 2023, but remains below expectations. — VNS