HCMC – Prime Minister Pham Minh Chinh has ordered the State Bank of Vietnam (SBV), the central bank, to regulate the financial market in a way that facilitates access to credit.
In a recent directive on fueling credit growth between now and the end of the year, the PM said delays and bottlenecks in injecting capital into the economy must be removed.
The directive said the central bank needs to draw lessons from the regulation of credit growth in 2022 and swiftly review lending operations in the banking system.
PM Chinh told the central bank to submit a report by December 1. Deputy Prime Minister Le Minh Khai has been assigned to oversee, guide, inspect, and enforce actions within his jurisdiction.
The Government Office has been tasked with monitoring and overseeing matters within its purview, reporting any issues that exceed its authority to the prime minister.
Under the current circumstances, households and businesses are finding it hard to gain access to loans even though commercial banks are sitting on mountains of idle cash.
Data from the SBV showed that in the year to October 24, loans to the economy had expanded by 6.81% against the end of 2022. Credit to businesses, which account for over 50% of total outstanding loans, is expected to be below the 14% growth target, with projections now estimating growth of a mere 12%.
By the end of September 2023, total outstanding real estate loans and outstanding consumer loans had reached VND2.74 quadrillion, up by 6.04% versus December 2022.
