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SBV urges lenders to not relax credit approval conditions

The State Bank of Vietnam has urged lenders to not relax credit approval conditions but set tighter control on foreign currency lending and granting loans in high-risk sectors.

The State Bank of Vietnam (SBV) has urged lenders to not relax credit approval conditions but set tighter control on foreign currency lending and granting loans in high-risk sectors.

The central bank has encouraged the creditors to further cut costs in order to reduce lending interest rates, and prioritise loans for priority production and business areas outlined by the Government.

SBV urges lenders to not relax credit approval conditions - 1
 

A bank teller is counting money at a branch of Bao Viet Bank. (Photo: VNA)


It said it will deploy flexible monetary policies which will be closely incorporated with fiscal and other macro-economic policies to boost economic recovery. It will also pay particular attention to keeping inflation under control and stabilising macro-economy.

The SBV has also called on the banks to accelerate digital transformation, modernise their payment and operation systems, and promote the use of contactless transactions, given that the pandemic is likely to linger on and technology is deemed as key to boost economic growth in the “new normal”.

The bank has requested the lenders to take better measures so as to restructure and handle bad debts to ensure the banking security, following the newly-approved project on restructuring credit institutions and non-performing loans from 2021 – 2025.