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PM urges strengthening of credit growth management

The Saigon Times

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HCMC – Prime Minister Pham Minh Chinh has written to three government ministers telling them to strengthen credit growth management in a way that helps fuel economic growth.

The PM sent Official Dispatch 1403/CD-TTg yesterday, December 22, to the Governor of the State Bank of Vietnam, the Minister of Public Security, and the Inspector General of the Government to deal with the credit growth management matter, particularly irregularities.

Official Dispatch 1403 follows Official Dispatch No. 1224/CD-TTg issued on November 26, 2023 by the PM regarding the monetary policy management in the final months of 2023, and the Government Office’s  Announcement No. 527/TB-VPCP on December 18 this year informing the conclusions made by the PM at a conference on resolving problems with lending to production and business.

The latest dispatch orders the State Bank of Vietnam (SBV), the central bank, to urgently implement the tasks assigned in Official Dispatch No. 1224 and Announcement No. 527 to cope with issues such as favoritism, group interests, malpractices and corruption in credit growth management.

The Governor of the SBV is tasked with intensifying inspections, checks, controls and monitoring of the use of assigned credit growth quotas by credit institutions, and ensuring that loans will go to priority areas like consumption, export and investment.

The SBV must ward off improper lending, especially to leaders, executives and related individuals of credit institutions and businesses in their ecosystem, and shadow businesses at lower-than-normal interest rates.

The central bank must work closely with the Ministry of Finance and relevant agencies to strictly handle improper advice and introduction of customers for investment in or purchase of corporate bonds, and for buying insurance at credit institutions.

The Government Inspectorate must work with the central bank and relevant agencies to urgently carry out the tasks assigned in Document No. 9444/VPCP-V.I issued on December 1 this year by the Government Office regarding inspection of the management of credit growth.

The Ministry of Public Security must coordinate with relevant agencies to strictly handle organizations and individuals that violate laws on corporate bond issuance, credit growth, allocation of credit growth quotas, and brokerage, consulting and sale of insurance at commercial banks.

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