Want to be in the loop?
subscribe to
our notification
Business News
BANKS GET ONE-OFF CREDIT GROWTH QUOTA ALLOCATIONS FOR 2024
The State Bank of Vietnam (SBV), the country’s central bank, has made one-off credit growth quota allocations for commercial banks right at the start of 2024, instead of using the recurring allocation system as seen in previous years.
The central bank has set the credit growth target at 15% for the banking system.
These credit growth quotas may be adjusted based on the actual market situation.
Last year, the SBV aimed for a credit growth rate of 14% to 15%. However, as of December 29, credit growth in the banking system was a mere 11%.
To make things more predictable, the SBV allocated credit growth quotas for banks in the beginning of the year, thus eliminating the need for banks to request a credit growth quota expansion as in previous years.
The SBV determines a credit growth quota for a bank based on factors such as outstanding loans for 2023, 2022 bank rankings, outstanding debts to be sold in 2024, and unrecovered loans.
For 100% foreign-owned banks and joint venture banks, outstanding loans at the end of 2024 must not exceed the approved quotas.
These changes in credit management by the State Bank of Vietnam follow repeated requests by the prime minister to inject capital into the economy.
Source: The Saigon Times
Related News
VIETNAM’S GDP TO GROW 5.5% THIS YEAR – WB
This forecast is based on the assumption of a moderate recovery in manufacturing exports in 2024, fueled by rebound growth of 8.5% year-on-year in the fourth quarter of 2023 and 17.2% year-on-year in the first quarter of 2024, reflecting strengthening global demand, said Dorsati Madani, senior country economist at the WB in Vietnam.
FARE REFUND FOR VISA REJECTION
Cathay Pacific will offer full refunds for cases of visa rejection to provide you with the confidence to explore the world with ease. If you are planning to fly to a destination that requires an entry visa, you can now book with greater peace of mind.
FOUR COMMODITIES POST Q1 EXPORT VALUE OF OVER 5 BILLION USD
The total export turnover of agricultural, forestry, and fisheries products in the first three months of 2024 is estimated to reach 13.53 billion USD, an increase of 21.8% compared to the same period of 2023.
MOIT PROPOSES SCHEME TO BOOST RENEWABLE ENERGY PROCUREMENT
The proposed Direct Power Purchase Agreement (DDPA) mechanism, outlined in the draft decree, targets organisations and individuals consuming electricity from the 22kV power grid or higher, with a monthly consumption averaging 500,000kWh. However, residential households are excluded from direct procurement.
REAL ESTATE BONDS PLACE PRESSURE ON ISSUING FIRMS
The ministry’s recent report underscores concerns within Vietnam’s corporate bond market for 2023 and 2024. It emphasizes the critical need to address hindrances to the real estate sector in line with the objectives provided in Government Resolution No. 33/NQ-CP, which aims to stabilize the industry.
DA NANG CUSTOMS FOCUSES ON DEVELOPING CUSTOMS-BUSINESS PARTNERSHIPS
Da Nang Customs Department issued an action plan for developing customs-business partnership in 2024. One of the new events this year is the workshop on “Settlement reports for enterprises engaged in outsourcing, export production and export processing” held in Da Nang Customs Department on April 16, 2024.