State Bank adjusts credit growth target

According to the State Bank of Vietnam, as of August 26, credit in the entire system increased by 6.63% compared to the end of 2023, much lower than the target set at the beginning of the year; credit growth of credit institutions was uneven, with some credit institutions experiencing low growth, even negative growth, while some credit institutions increased close to the target announced by the State Bank of Vietnam.

Therefore, in order to implement the direction of the Government and the Prime Minister on flexible, effective and timely credit growth management, meeting credit capital for the economy and controlling inflation, stabilizing the macro-economy, the State Bank proactively adjusted credit growth targets for credit institutions, while continuing to implement the policy of the National Assembly and the Government on gradually removing the measure of assigning credit growth targets.

The State Bank of Vietnam affirmed that this agency always closely follows the Resolution of the National Assembly, the direction of the Government and the Prime Minister in operating monetary policy firmly, proactively, flexibly, effectively, synchronously and closely coordinating with fiscal policy and other macroeconomic policies to control inflation according to the target, contributing to stabilizing the macro economy and supporting reasonable economic growth.

In the coming time, the State Bank will continue to closely monitor domestic and international market developments, be ready to support liquidity to create conditions for credit institutions to supply credit to the economy and promptly have appropriate monetary policy management solutions.

According to the separate financial reports of the second quarter of 2024 of 30 commercial banks, the total loan capital reached 12,328 trillion VND.

The four state-owned commercial banks (Agribank, VietinBank, Vietcombank, BIDV) lead the market in lending, with total outstanding loans reaching over VND6.34 trillion as of June 30. The lending market share of the Big4 banks accounts for 52% of the total market share of the 30 banks combined.

If calculating the Top 10 largest lending banks in the first 6 months of the year, the total loan capital of these 10 banks reached 9,598 trillion VND, accounting for 78% of the total outstanding debt of all 30 banks.

BIDV Bank leads the market in terms of loan capital with more than VND 1,840 trillion as of June 30, up 5.9% compared to December 31, 2023 and accounting for 15% of the total loan market share.

Agribank and VietinBank had outstanding loans as of June 30 reaching VND1.59 and VND1.55 million billion, respectively, achieving credit growth of 2.59% and 6.69% compared to the end of 2023.

Vietcombank achieved the lowest outstanding loan balance in the Big4 group with more than 1.35 million billion VND, credit growth reached 7.75%.

In terms of lending market share of 30 banks, Agribank accounts for 12.9%, VietinBank accounts for 12.64% and Vietcombank accounts for 11%.