The State Bank of Vietnam (SBV) has raised the domestic banking system’s credit growth limit by 1.5-2.0 percentage points from the previous 14 per cent.

The central bank said in an announcement released on December 5 that local banks that meet liquidity requirements and offer low interest rates on loans will enjoy an increase in their credit growth.

“These are flexible measures for the time being,” the bank said.

It said it will closely monitor the situation, especially inflation, to work on monetary and credit policies for 2023.

Earlier, the SBV demanded that local commercial banks tighten credit and improve liquidity while prioritizing key sectors in the economy such as agriculture, exports, small and medium-sized enterprises (SMEs), and supporting industries.