Speaking at the Government's regular press conference in August 2024, SBV's Standing Deputy Governor Đào Minh Tú reported that, as of September 7th, the total outstanding credit had increased by 7.75%. While this figure remains somewhat distant from the 2024 target of 15%, Deputy Governor Tú highlighted that the early months of the year witnessed a contraction in credit growth. However, from April onwards, credit expansion began to accelerate, with notable momentum in July and August.
At the same point in 2023, credit growth stood at a modest 5.33%, yet the final figure for that year reached 13.71%. "This year, given the prevailing economic conditions and the overall positive outlook compared to previous periods, we are optimistic about reaching the 15% target," Tú shared.
The SBV representative emphasized that the 15% growth rate is a guiding objective rather than a rigid mandate. The primary focus at this stage is on fostering credit expansion to support broader economic growth through increased investment.
Since the start of the year, SBV has actively implemented measures to stimulate credit growth. In late 2023, the central bank assigned a 15% credit growth ceiling to all commercial banks, allowing them to proactively manage their lending activities.
Additionally, SBV has taken concrete steps to gradually lower interest rates. Current data shows that the average lending rate for new loans stands at 6.23%, down by 0.86% compared to the end of 2023. In contrast, the deposit rate is at 3.84%, a marginal increase of 0.23%, driven primarily by smaller commercial banks.
In terms of exchange rates, SBV has maintained relative stability. As of now, the Vietnamese đồng has depreciated by only 1.5% against the U.S. dollar, a figure much lower than many other economies. SBV intends to continue stabilizing the exchange rate to encourage foreign investment.
Liquidity, both within the economy and in the banking system, remains ample. This abundance of liquidity, coupled with credit room and capital resources, ensures that commercial banks have a strong capacity to lend. The critical challenge now lies in stimulating demand for capital. Strengthening businesses' demand for credit and their capacity to absorb capital will require concerted efforts, including macroeconomic policy interventions.
In parallel, SBV has accelerated the adoption of technology in credit operations, facilitating more seamless experiences for both borrowers and lenders. The focus remains on channeling funds into priority sectors, in line with the government's directives.
Furthermore, SBV has committed to expanding the scale of preferential lending packages. The credit package for seafood exports, initially projected at VND 30 trillion, has already surpassed expectations, reaching VND 36 trillion. Earlier today, the Prime Minister directed SBV to raise the package's value to around VND 50-60 trillion.
The VND 140 trillion credit package for social housing will also see enhanced terms. Interest rates under this program will be 3% lower than the average medium- to long-term lending rates of state-owned commercial banks. This represents an additional 1% reduction from the previous differential of 2%. Moreover, loan terms will be extended from 5 years to 10 years, further aiding individuals in accessing affordable housing.
“With the current credit outstanding and the proactive measures in place, SBV is confident that we will not only meet the 15% credit growth target but also contribute significantly to the economy's overall growth target of 6.5% to 7%,” Deputy Governor Tú concluded.
Source: theleader
