Almost 300,000 Billion VND Disbursed into the Economy in Just 10 Days

DNHN - In just the last 10 days of 2023, banks disbursed a net amount of nearly 300,000 billion VND into the economy through lending channels, bringing the entire system’s credit growth for the year to 13.5%.

Speaking at a press conference on banking tasks on the morning of January 3rd, Deputy Governor of the State Bank of Vietnam Dao Minh Tu said that as of the end of 2023, the entire system’s credit growth had reached approximately 13.5% compared to 2022.

According to the Deputy Governor, this credit growth rate has not yet reached the target of 14-15% set by the SBV at the beginning of the year. However, in the context of low credit demand throughout 2023, this is still a positive growth rate.

The aforementioned credit growth rate also drove economic growth of around 5% (lower than the set target but still a high growth rate globally). At the same time, it supported businesses and individuals in overcoming difficulties and recovering production and business activities.

“The above growth rate is also equivalent to the banking industry providing an additional 1.5 million billion VND to the economy last year, which is also very large,” the Deputy Governor emphasised.

Notably, according to previously released data from the General Statistics Office, as of December 21st, 2023, the economy’s credit growth had only reached 11.09%. Thus, in just the last 10 days of 2023, the entire banking industry’s credit growth reached 2.41%, equivalent to nearly 290,000 billion VND that banks disbursed into the economy during the same period.

This is a very rapid credit growth rate compared to the average in the first half of the previous year.

For 2024, Deputy Governor Dao Minh Tu said that the SBV has assigned a credit growth target of 15% to credit institutions, which was assigned in full at the beginning of the year. With this credit growth rate, an equivalent of approximately 2 million billion VND will be provided to the economy through the banking system’s lending channels. The SBV’s Deputy Governor also emphasised that this is a target growth rate and will be adjusted according to the actual market situation. “If credit demand is good and the economy’s capital demand is high, the credit growth rate could be 16% instead of just 15%.”

In addition, the SBV’s leadership also said that it will continue to direct credit institutions to channel credit into production and business sectors, priority sectors, and growth drivers (investment, consumption, export) in line with the government’s policies.

At the same time, it will tightly control credit in areas with potential risks. The regulatory authority also aims to continue effectively implementing the Scheme for restructuring the system of credit institutions in conjunction with handling bad debts for the 2021-2025 period; focusing on effectively implementing solutions to handle weak credit institutions.

Directing credit institutions to step up the handling and recovery of bad debts, with the target for 2024 being a non-performing loan ratio (excluding weak commercial banks) of less than 3%.

At the same time, it will strengthen inspection, examination, and supervision of the banking industry, inspect areas with potential risks to prevent, detect, and strictly handle risks, shortcomings, and violations of credit institutions, thereby contributing to ensuring security and discipline in the monetary and banking market.

P.V