Bank credit increases again in March hinh anh 1

According to the SBV, the credit of the banking system in the first two months this year decreased by 0.72% compared to the end of last year. Low credit growth in the first months of a year is common. The average credit growth in the first two months in the 2013-23 period was 0.56%. Credit declines in the first two months were also seen, in 2014, 2018 and 2024.

However, experts say the credit decrease in the first two months of 2024 was more serious because this year's conditions are different from the previous years, as the SBV this year assigned the entire credit growth quota of 15% for commercial banks right in the first month instead of only allocating a part of the quota at the beginning of the year as previously.

Therefore, the SBV in February had to send an official dispatch to credit institutions stating that despite the application of supporting policies to boost credit from the beginning of the year, credit growth this year was still quite low compared to recent years.

To boost credit growth, the SBV has requested credit institutions to firmly implement effective credit growth solutions since early February. Accordingly, credit institutions must review to simplify lending procedures with an aim to increase people's ability to access capital.

Besides, they must focus on strengthening digital transformation in the credit process to increase access to capital and more widely popularise banking credit activities.

In addition, the SBV said it was necessary to improve the operational efficiency of funds such as the credit insurance fund for small- and medium-sized enterprises (SMEs), and the development fund for SMEs, to enhance SMEs' ability to access credit.

The SBV also noted credit must focus on production, business and the Government’s priority sectors, as those are the country’s economic growth drivers. Banks also need to strictly control credit for potentially risky sectors to ensure safe and effective operations.

On the borrower side, the SBV has also encouraged enterprises to actively implement solutions to restructure operations; have more feasible investment, production and business projects; prove the feasibility of the projects; and strengthen transparency and financial capacity so that credit institutions can appraise and provide loan services to borrowers conveniently in the coming time./.VNS