The State Bank of Vietnam studies the roadmap to remove credit room

DNHN - The State Bank of Vietnam (SBV) is considering a roadmap to remove the credit room mechanism as directed by the National Assembly and the Government.

Deputy Governor of the State Bank of Vietnam, Phạm Quang Dũng, emphasized the importance of proactive and flexible credit management in the current context. This not only helps the SBV adapt to macroeconomic fluctuations but also contributes to effectively controlling inflation. To ensure the sustainable development of the banking system, the SBV will continue to publicly and transparently assign annual credit growth targets to credit institutions. This not only creates clarity in management processes but also increases investor and business confidence in the financial market.

Financial experts believe that removing the credit room will create many opportunities for commercial banks. Without being restricted by rigid credit limits, banks will have more autonomy in developing business plans and lending strategies. This allows them to be more flexible in meeting the capital needs of businesses and individuals. Moreover, the SBV can use tools such as reserve requirements to control credit growth, thereby minimizing the risk of overheating growth and ensuring the stability of the financial market.

The Q2 financial report shows a positive picture of credit growth within the banking system. Notably, eight banks recorded impressive credit growth rates of over 10% by June 30. Banks such as NCB, LPBank, HDBank, and Techcombank stood out with growth rates of 16%, 15.2%, 13%, and 12.9%, respectively. This not only reflects high credit demand from businesses and consumers but also demonstrates the attractiveness of banks in providing diverse and flexible financial products. This growth is evidence of the banks' ability to seize opportunities and adjust to market demands.

Despite many positive signs, the SBV still needs to closely monitor macroeconomic factors and the existing inflationary pressures. The application of credit control measures must be carefully considered to both support economic recovery and ensure macroeconomic stability. The road ahead will not be simple, but adjustments in credit management could open up new directions for the banking system, thereby contributing to long-term sustainable economic development. Investors and businesses need to pay attention to these changes to take advantage of opportunities in an increasingly dynamic market.

However, while the SBV is seeking to remove the credit room, there are still many challenges that the institution faces. Inflationary pressures remain present, requiring the SBV to balance supporting economic recovery with controlling inflation. At recent meetings, National Assembly deputies pointed out that the application of the credit room could lead to a "application-approval" situation, causing difficulties for banks in their development process.

Key interest rates, one of the important tools of the State Bank of Vietnam, will be adjusted flexibly to promote economic development. According to Dr. Lê Xuân Nghĩa, many other countries have successfully applied system safety indicators, such as liquidity ratios and the Capital Adequacy Ratio (CAR), to effectively control credit. These measures not only help banks maintain stability but also create conditions for the economy to develop sustainably in a volatile environment.

The study of the roadmap to remove the credit room marks an important step in the process of credit liberalization in Vietnam's banking sector. This not only reflects the SBV’s determination to reform the financial system but also creates opportunities for banks to develop more diverse financial products and services. Although there are still many challenges ahead, this shift shows that the economy is experiencing positive signals. Banks are becoming more flexible in their operations and capital provision, creating favorable conditions for businesses and consumers.

The readiness of banks to adapt to these changes will not only benefit themselves but the entire economy. This will encourage investors and businesses to closely follow market developments to take advantage of new opportunities in the future. As the economy recovers, being able to capture information and market trends will be a decisive factor for success in investment and business activities.

Finally, investors need to be aware that changes in credit policies will affect the operations of the entire financial system. To optimize profits and minimize risks, it is crucial to closely monitor policy changes as well as macroeconomic conditions. This way, they can make smart investment decisions, contributing to the stable and sustainable development of Vietnam's economy.

Phan Chinh