HCMC – The State Bank of Vietnam (SBV) plans to phase out credit growth quotas for banks, targeting a 16% expansion in overall lending, according to SBV deputy governor Dao Minh Tu.
Speaking at a Government meeting chaired by Prime Minister Pham Minh Chinh on February 11, Tu said the transition aims to provide greater flexibility for banks while aligning with macroeconomic goals. The conference, attended by commercial bank leaders, focused on ways to fuel economic growth while keeping inflation in check.
The Government has set a GDP growth target of at least 8% for 2025.
The SBV will gradually reduce and ultimately eliminate individual credit growth limits for commercial banks. Instead, it will manage credit expansion based on economic conditions without requiring banks to submit a formal request. Tu emphasized that while credit policy will be adjusted to enhance financial flexibility, the SBV remains committed to maintaining monetary stability and inflation control.
In 2024, the SBV maintained low interest rates to support lending. By year-end, lending rates had dropped by 1.24 percentage points compared to 2023, reducing borrowing costs for businesses and individuals.
Last year, credit growth reached 15.08%, injecting VND2.2 quadrillion into the economy, while total loan disbursements hit VND23 quadrillion. The SBV also completed the restructuring of four weak banks and kept bad debt levels below 3%.
Tu noted that the SBV is working to ease credit access for businesses and individuals, expanding various lending programs to support economic recovery. Debt restructuring policies have also helped borrowers navigate financial difficulties amid recent economic challenges.
Looking ahead, the SBV faces policy challenges from global trade uncertainties, exchange rate volitality, and shifting interest rates. Authorities aim to maintain monetary stability while fostering economic expansion. The central bank will continue coordinating monetary policy with fiscal measures and other macroeconomic tools to sustain growth in 2025.
