HCMC – The State Bank of Vietnam (SBV) decided last night (December 5) to increase the credit growth limit for this year by 1.5 to 2.0 percentage points, reversing its persistent stance on loan growth.
With inflationary pressure on its mind, the SBV, the country’s central bank, earlier affirmed that it would not let credit growth surpass the 14% target.
In the recent past, the central bank did give extra credit growth quotas to the top four State-owned commercial banks and a couple of banks involved in the restructuring of ailing banks.
Explaining its decision to raise the credit growth limit, the SBV said external factors were less of a concern while liquidity in the banking system had improved.
The central bank requested commercial banks to prioritize lending to sectors such as agriculture, export, supporting industries, and small and medium enterprises.