Vietnamese central bank raises credit growth cap for local banks

The State Bank of Vietnam (SBV) on Monday raised its cap on the local banking system's credit growth for this year by 1.5 to 2.0 percentage points.

It said in an announcement released the same day that banks with good liquidity and offering low interest rates will enjoy an increase in their credit growth.

Noting that these are "flexible measures" in the current context, the bank said it will closely monitor the situation, especially the inflation to work on monetary and credit policies for 2023.

The bank's governor also requested credit institutions to provide credit for businesses, especially those operating in such fields as agriculture, exports, small and medium enterprises.

In October, the SBV approved to expand credit growth limits for 15 commercial banks, marking the first time that the bank has loosened its credit limits on a whole bunch of banks simultaneously.