HÀ NỘI — The State Bank of Việt Nam (SBV) on Thursday announced that it has raised the credit growth target for commercial banks to support economic growth amid controlled inflation, in line with the Government’s directives.

As of July 28, total outstanding loans had increased by 9.64 per cent compared to the end of last year, the SBV said in a statement on its website.

The adjustment of credit growth quotas was made based on specific principles to ensure transparency, the SBV noted, adding that it proactively raised the quotas without requiring proposals from credit institutions. The announcement did not specify the scale of the adjustments.

Earlier this year, the central bank set the annual credit growth target at 16 per cent.

The SBV emphasised that credit expansion must be implemented prudently and effectively, with a focus on priority sectors aligned with the Government’s economic growth strategy, while closely monitoring credit flows into high-risk areas.

The SBV also stated that it will strive to maintain stable deposit rates and reduce lending rates through cost-cutting, digitalisation, streamlined administrative procedures, and internal restructuring.

Policies to ease access to credit will be promoted, the central bank said, pledging to monitor both domestic and international financial markets to ensure liquidity and a steady flow of credit into the economy, alongside timely implementation of monetary policy to maintain financial stability.

The SBV also called on credit institutions to strengthen credit risk management and accelerate the resolution of bad debts. — VNS