Banks get one-off credit growth quota allocations for 2024

HCMC – 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. These credit growth quotas may be adjusted based on the actual market situation. 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. For 100% foreign-owned banks and joint venture banks, outstanding loans at the end of 2024 must not exceed the approved quotas.