HANOI The State Bank of Vietnam (SBV) said on Wednesday that it has raised the limits on credit growth for some banks this year based on their latest operational results, market changes, and proposals.
The move is meant to help some banks lend more without encouraging too much credit growth. The SBV said that banks will only be able to adjust their credit growth up if they meet certain requirements about interest rates and how they handle bad debt. It didn’t say what banks they were.
In 2012, there was a crisis of loans that weren’t being paid back in Vietnam. This was blamed for putting a stop to the Southeast Asian manufacturing hub’s years of fast growth.
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“With the increase, businesses and people will be able to get their hands on more money. “But the money that is given must go to areas that are important to the government, like production, and not to areas that could be risky,” said the SBV.
Several local banks are already close to the overall credit growth limit of 14% for 2022, and the risk of more non-performing loans is still there, the report said.
This year, Vietnam wants to grow by 6% to 5% and keep inflation below 4%. In August, consumer prices were 2.89% higher than they were a year earlier. At the end of 2021, the growth rate of credit was 9.91%.
