Vietnam c.bank governor: won't remove cap on credit growth in banking system
Monday, November 06, 2023, 11:35 GMT+7
Vietnam's central bank will not remove its cap on annual credit growth in the local banking system, governor Nguyen Thi Hong said on Monday.
Hong said removing the cap, which is set at 14% for this year, could result in excessive lending, noting the ratio of bank loans to gross domestic product in Vietnam is already high.
Banks' total lending as of Oct 27 rose 7.1% from the end of last year, according to the central bank.
"Credit growth in the first 10 months of this year was lower than expected as demand for loans from businesses was weak," Hong told parliament in Hanoi.
Last week, Hong said Vietnam was seeking to boost credit growth by encouraging domestic consumption, adding that a recovery in the real estate market would also help support the growth.
