State Bank increases credit targets, 'pumps' capital into the economy
According to the SBV leader, closely following the Resolution of the National Assembly , the direction of the Government and the Prime Minister, the SBV is operating monetary policy proactively, flexibly, promptly and effectively. The solutions are implemented synchronously, harmoniously and closely with fiscal policy as well as other macroeconomic policies. The goal is to promote strong economic growth, while still ensuring macroeconomic stability, controlling inflation and major balances of the economy.
From the beginning of 2025, the SBV has assigned credit growth targets to credit institutions. The SBV maintains reasonable credit growth, targeting about 16% in 2025, to meet the capital needs of the economy, promoting growth from the Government's GDP target of 8%. According to data updated to July 28, 2025, credit across the system has increased by 9.64% compared to the end of 2024. This result shows that credit continues to be promoted, contributing to meeting the capital needs of the economy.
In the context of inflation being controlled in line with the targets set by the National Assembly and the Government, along with the implementation of the Government's and the Prime Minister's instructions on appropriate and effective credit management, the SBV has taken timely action. Specifically, on July 31, 2025, the SBV announced an adjustment to increase the credit growth target for 2025 for credit institutions.
The adjustment of this indicator is carried out according to specific principles, ensuring publicity and transparency. This is a proactive decision of the State Bank, according to which credit institutions do not need to make a request as before. This policy demonstrates flexibility and proactiveness in management, creating conditions for credit institutions to increase their ability to supply credit in accordance with the actual needs of the economy.
Along with adjusting targets, the SBV also requires credit institutions to strictly implement the directions of the Government, Government leaders and the SBV. Credit institutions need to resolutely organize and implement credit solutions, improve business efficiency, ensure system safety and contribute to stabilizing the monetary market.
Credit growth must ensure safety and efficiency, focusing on production and business sectors, priority sectors and economic growth drivers according to the policies of the Government and the Prime Minister. At the same time, credit institutions must strictly control credit in potentially risky sectors to avoid causing imbalances or increasing bad debts in the system.
On the other hand, to support businesses and people, the State Bank requires credit institutions to maintain stable deposit interest rates while striving to reduce lending interest rates. This measure will be implemented through reducing operating costs, enhancing the application of information technology, simplifying administrative procedures and restructuring the organizational structure.
At the same time, policies to remove difficulties in accessing credit capital continue to be implemented to support businesses and people to recover and develop production and business. Credit institutions must provide credit in accordance with legal regulations and the direction of the State Bank in Directive No. 01/CT-NHNN dated January 20, 2025 on organizing the implementation of key tasks of the banking sector in 2025.
In addition, the State Bank requires credit institutions to strictly comply with legal regulations on safety ratios, credit limits for customers, debt classification and risk provisioning. This helps strengthen credit risk control, improve loan quality and limit the occurrence of bad debt in the future.
Credit institutions also need to step up appraisal work before granting credit, and at the same time strengthen inspection and supervision after granting credit to ensure effective use of loan capital, avoid loss and misuse... At the same time, this agency is also ready to support liquidity when necessary, creating favorable conditions for credit institutions to provide credit effectively. Adjustments in operating policies will be implemented flexibly, in accordance with the actual situation to both promote growth, control risks and ensure macroeconomic stability.
Previously, at the Government Conference with localities on socio-economic development, the Prime Minister requested to soon remove the credit growth limit. The Government leader requested the State Bank to soon remove administrative tools in managing credit growth, instead following the market mechanism. Instead, this agency needs to shift its management to the market mechanism and develop a set of criteria for controlling credit safety.
Mr. Pham Chi Quang - Director of the Monetary Policy Department, State Bank of Vietnam (SBV) said: Since the beginning of 2024, the SBV has switched to assigning credit targets to controlled credit institutions (CIs), instead of applying them uniformly as before. By 2025, credit targets have been completely removed for foreign banks and non-bank financial institutions. Currently, they only apply to domestic commercial banks. This is considered an important stepping stone in the roadmap towards completely abolishing the credit "room" tool.
Mr. Minh
Source: https://baochinhphu.vn/nhnn-tang-chi-tieu-tin-dung-bom-von-cho-nen-kinh-te-102250731174957903.htm
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