Commercial banks asked to further lend for production and business

SBV's request came as an official dispatch to credit institutions and foreign bank branches on credit growth in 2022.

Accordingly, the SBV requires credit institutions that still have room to actively disburse loans into production and business, especially in priority fields such as agriculture, rural areas, export, small and medium-sized enterprises, supporting industries, high-tech enterprises, and other fields that are drivers for economic growth.

In addition, credit institutions must ensure stable liquidity, safe banking operations, and strictly control credit from potentially risky areas.

Going forward, the SBV will provide appropriate management solutions following the government's policy and demands of commercial banks and enterprises.

In 2022, the SBV sets a credit growth target of 14 per cent. By the end of August 2022, the credit growth of the economy reached nearly 10 per cent. Because numerous commercial banks ran out of room, at the beginning of September 2022, the SBV increased the credit limit for 15 commercial banks by 1 to 4 per cent. The bank's credit room adjustment is based on commercial banks' application and rating scores.

The announcement and adjustment of credit growth for credit institutions are based on assessing their performance, controlling inflation, stabilising the money market, and encouraging credit institutions to enhance their business administration operational safety, and contributing to a healthy banking system.

The SBV also affirmed further plans for creating favourable conditions for people and businesses to access bank credit, contributing to economic recovery.