To: Credit institutions and foreign bank branches

Implementing order of the Government and Prime Minister, based on market development and credit, interest growth of credit institution in recent time, Governor of the State Bank of Vietnam (SBV) hereby requests credit institutions and foreign bank branches (hereinafter referred to as “credit institutions”) to implement the followings:

1. On the basis of credit growth criteria notified by the SBV, credit institutions shall balance funding sources to promptly satisfy loan capital demand of the economy and minimize risks. Focus credit extension on manufacturing, business, priority sectors (agriculture, rural areas, export, small and medium enterprises, auxiliary industries, enterprises utilizing high technology); economic drives according to direction of the Prime Minister (investment, consumption, and export); build industrial zones; grant the general public mortgage loans; housing projects that are soon to be completed and transferred, have adequate and timely mortgage payment, have adequate legitimacy and liquidity, especially projects for social housing, worker’s housing, and commercial housing at appropriate cost.

2. Closely monitor credit risks in corporate bond investment, risky sectors such as securities investment, trading, real estate, especially credit extension for real estate investment and trading, control the level of credit largely in major customers/groups of customers, large-scale projects, and high-ranking sections, etc.

3. Continue to promote implementation of interest subsidies in accordance with Decree No. 31/2022/ND-CP dated May 20, 2022 of the Government and Circular No. 03/2022/TT-NHNN dated May 20, 2022 of the State Bank of Vietnam.

4. Continue to reduce operating costs, administrative procedure costs, and unnecessary costs in order to facilitate reduction of loan interest in accordance with Resolution No. 43/2022/QH15 dated January 11, 2022 of the National Assembly.

SBV shall monitor credit institutions that increase interest rate and take actions against these credit institutions.

For your strict compliance./.

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PP. GOVERNOR
DEPUTY GOVERNOR




Dao Minh Tu