The State Bank of Vietnam (SBV) has just issued document number 1088/NHNN-CSTT on February 7, 2024 regarding credit growth in 2024 to credit institutions and branches of foreign banks.
The content of document number 1088/NHNN-CSTT states that on December 31, 2023, the State Bank of Vietnam (SBV) announced the credit growth target for 2024 to be about 15% for credit institutions and branches of foreign banks (CIs) in order for them to actively and resolutely promote credit growth and implement solutions to meet the capital needs of businesses and individuals, contributing to economic growth.
However, credit growth in early 2024 is relatively low compared to recent years. Therefore, the SBV requires CIs to enhance credit growth solutions starting from the early months of 2024 according to the tasks and solutions set forth by the Governor of the SBV in Directive number 01/CT-NHNN on January 15, 2024 to contribute to promoting economic growth.
Specifically, the SBV requires CIs to effectively implement the solutions and tasks stated in Directive number 01/CT-NHNN on January 15, 2024, Resolution number 103/2023/QH15 on November 9, 2023 of the National Assembly on the economic and social development plan for 2024, and Resolutions of the Government on the main tasks and solutions for implementing the economic and social development plan and state budget estimates for 2024, tasks and solutions to improve the business environment, and enhance national competitiveness in 2024 (Resolution number 01/NQ-CP on January 5, 2024, Resolution number 02/NQ-CP on January 5, 2024, and related Resolutions).
The SBV also requires resolute implementation of credit growth solutions that are accurate and hit the target from the beginning of the year, promptly meeting the credit capital needs of the economy, directing credit towards production business sectors, priority sectors, and economic growth drivers in accordance with the Government’s directions and the Prime Minister’s directions; tightly controlling credit in potential risk areas to ensure safe and effective credit activities.
In addition, CIs should review and simplify credit approval procedures and processes, optimize digital transformation in credit approval processes, reduce costs to strive for lower loan interest rates; create favorable conditions for individuals and businesses to access bank credit, especially through digitized channels, products, and services.
CIs should diversify banking products and services that are suitable for each customer segment and market, industry, the legitimate and legal capital needs for people’s lives and consumption by individuals and businesses. Actively and proactively communicate timely, clearly, fully, and accurately about the policies, products, and services of CIs to help people and businesses better understand and thereby contribute to promoting the Comprehensive Financial Strategy.
According to the SBV, CIs are required to actively and proactively implement effective and practical programs connecting banks and businesses, proactively coordinate with party committees, local authorities, political-social organizations to organize exchanges and dialogues with loan customers to grasp and promptly handle the difficulties and obstacles of customers in an effective, practical, and substantial manner, thereby expanding the access to credit capital for businesses and individuals.