Credit growth has reached 12.97 percent so far and is likely to hit 14 percent this year, Standing Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu said in a press conference on the SBV's governance of monetary policies and banking operation on December 28.

 

The credit growth is likely to reach 14 percent in 2021 though there are only a few days left, as credit expands very strongly towards the end of the year, he emphasized.

 

He went on to voice concerns over an increase in non-performing loans this year, saying it is one of the big challenges to the banking system in 2022 and the following years.

 

This year, the bad debt ratio has to date edged up to 3.79 percent, he said, adding that the rate would even reach 8.2 percent if taking into account restructured debts.

 

Tu attributed the increase to the worst-ever fourth wave of COVID-19 outbreaks in Vietnam, noting that bad debts are unwanted consequences of the COVID-19 outbreak and it can riseeven higher if the pandemic continues to cause troubles to businesses in the coming time.

 

This year, the SBV has undertaken measures to improve credit quality, direct credits to production and priority sectors and tighten control on those poured into high-risk areas, such as real estate, stock market, Build-Operate-Transfer (BOT) and Build-Transfer (BT) transport projects. It has also strengthened risk management on consumer credit and provided enterprises and individuals with broader access to banks’ loans.

 

In 2022, the central bank will continue flexibly governing monetary policy tools in tandem with fiscal and other macro-economic policies to support post-pandemic economic growth, he said./.

VNA