Credit growth likely to hit 14 percent in 2021: SBV Deputy Governor
Credit growth has reached 12.97 percent so far and is likely to hit 14 percent this year, Standing Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu said in a press conference on the SBV's governance of monetary policies and banking operation on December 28.
Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu speaks at the event (Photo: SBV)
Hanoi (VNA) – Credit growth has reached 12.97percent so far and is likely to hit 14 percent this year, Standing DeputyGovernor of the State Bank of Vietnam (SBV) Dao Minh Tu said in a pressconference on the SBV's governance of monetary policies and banking operation onDecember 28.
The credit growth is likely to reach 14 percent in2021 though there are only a few days left, as credit expands very stronglytowards the end of the year, he emphasized.
He went on to voice concerns over an increase innon-performing loans this year, saying it is one of the big challenges to thebanking system in 2022 and the following years.
This year, the bad debt ratio has to date edged up to 3.79percent, he said, adding that the rate would even reach 8.2 percent if taking into account restructured debts.
Tu attributed the increase to the worst-ever fourth wave ofCOVID-19 outbreaks in Vietnam, noting that bad debts are unwanted consequences of the COVID-19outbreak and it can riseeven higher if the pandemic continues to cause troublesto businesses in the coming time.
This year, the SBV has undertaken measures to improve creditquality, direct credits to production and priority sectors and tighten controlon those poured into high-risk areas, such as real estate, stock market,Build-Operate-Transfer (BOT) and Build-Transfer (BT) transport projects. It hasalso strengthened risk management on consumer credit and provided enterprisesand individuals with broader access to banks’ loans.
In 2022, the central bank will continue flexibly governing monetarypolicy tools in tandem with fiscal and other macro-economic policies to supportpost-pandemic economic growth, he said./.
Deputy Governor of the State Bank of Vietnam Dao Minh Tu said that favourable conditions will be created to facilitate businesses’ access to loans, but credit quality still needs to be guaranteed and bad debt needs to be controlled in the short, medium, and long terms.
The State Bank of Vietnam (SBV) has extended the credit growth limits for the third time this year to some commercial banks to meet rising capital demands at year-end.
Many banks have increased their interest rates to attract more depositors after getting a credit growth quota expansion from the State Bank of Vietnam (SBV).
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Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu speaks at the event (Photo: SBV) 
