Banking system posts credit growth of 13.5% in 2023

Vietnam’s credit growth reached around 13.5% in 2023 although unprecedented developments of the global economy posed formidable challenges to the country’s monetary policy, Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu said on January 3.

According to Tu, the result was spurred by the drastic direction of the Prime Minister and resolve of the banking sector in the past year.

Earlier, the central bank set a credit growth target for the year at about 14-15%, with flexible adjustments in accordance with the actual development so as to stabilise the macro-economy and support economic growth in a rational fashion.

The SBV rolled out an array of measures, policies and programmes to ensure sufficient capital for the economy, helping the country achieve the GDP growth rate of around 5%, the official stressed.

Focus was sharpened on the completion of legal framework on lending as well as the simplification of lending procedures, the strengthening of the connectivity between commercial banks and enterprises across the nation, and the development of special credit programmes.

Tu said the central bank has set a credit growth target of 15% for the domestic banking system in 2024, with possible adjustments in line with the development of the macro-economy and inflation rates.

The bank will continue directing credit institutions to prioritise capital for critical spearheads - investment, consumption and export that drive the economic growth, the official said, adding it will strictly control the credit in potentially risky areas.

Additionally, the central bank will accelerate the implementation of the national target programmes, create favourable conditions for businesses and local people to get access to capital, and remove bottlenecks in the expansion of consumer credit so as to combat loan sharks.