Deputy Governor of the National Bank: There is no longer a mechanism to ask and give room for credit

The new method of granting credit lines is a step towards changing the operating organizational mechanism of the National Bank. It reflects objective transparency and no longer requires and gives the mechanism like the previous house granting. Deputy Governor Tao Mintu said that the 2024 credit growth target that the National Bank has allocated to credit institutions is 15%, and has been fully allocated from the beginning of the year.

At this credit growth rate, approximately VND 20 billion will be provided to the economy through lending channels in the banking system. The Executive Deputy Governor of the National Bank also emphasized that this is a target growth rate and will be adjusted based on actual market conditions. “If credit demand is good and the capital needs of the economy are higher, credit growth can be 16%, not just 15%.”

In addition, leaders of the National Bank also stated that they will continue to guide credit institutions to guide credit to production and operation areas, priority areas and growth drivers (investment, consumption, exports) in accordance with government policies.

The vice president emphasized that the credit line is a change in the operating mechanism. It used to be an allocation mechanism, but now it is an investment mechanism. Because last year, some banks completely increased housing prices, even at a negative rate.

“We are starting to increase, which is a message that the capital invested in the economy must be stronger. If any bank’s quota is used up, the National Bank may consider increasing the quota, so the capital is too little and not enough, and it is all thrown into the backyard or the ecology. The National Bank will supervise this. We confirm that by 2024, there will no longer be a credit room request mechanism,” Deputy Governor Dao Minh Tu said.

>> Credit growth will reach about 13.5% in 2023