- High credit growth targets require cooperation within Vietnam's financial sector.
- The State Bank of Vietnam balances inflation control with support for economic growth.
- The State Bank of Vietnam implements credit allocation principles as directed by the government.
State Bank of Vietnam coordinates measures to boost SME capital access
What happened
The State Bank of Vietnam is coordinating measures to improve capital access for Small and Medium Enterprises through the commercial banking sector. As of September 18, 19 commercial banks registered to participate in this program, offering a total credit scale of $16.28 billion. Loans under this program carry interest rates at least 1 percentage point below the standard lending rates of participating banks.
From vir.com.vn
Why it matters
The initiative addresses a significant gap in SME financing; FiinGroup reported that only 20.5% of SMEs currently have outstanding bank loans. This gap is wider for micro enterprises, which access bank credit at 8.8%, compared to 61.4% of large enterprises.
The State Bank of Vietnam is implementing credit allocation principles as directed by the government while balancing inflation control with support for economic growth.
From vir.com.vn
Who's involved
- State Bank of VietnamCoordinates measures to facilitate SME capital access through the banking sector.
- BanksParticipates in the program by offering subsidized loans to Small and Medium Enterprises.
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The entities involved
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State Bank of Vietnam
central bank
Related events
- The State Bank of Vietnam monitors state-owned banks like Vietcombank and addresses funding pressures in the banking system.
- The State Bank of Vietnam must carry out resolution plans for poor-performing institutions, following direction from the Prime Minister.
- The State Bank of Vietnam encourages commercial banks to utilize data-driven lending models in their operations.
- Phạm Đức Ấn serves as the Governor of the State Bank of Vietnam.