Credit growth increases in Vietnam
2022.12.05 07:41
[ad_1]
Credit growth increases in Vietnam
Budrigannews.com – On Monday, the central bank of Vietnam stated that it had increased the range of 1.5 to 2.0 percentage points for this year’s 14% cap on the local banking system’s credit growth.
The local property and financial markets have been experiencing a credit crunch over the past few weeks as a result of increases in the policy rate set by the central bank.
“These are flexible measures for the time being,” the central bank stated in a statement, “Banks with good liquidity and offering low interest rates will be eligible for an increase in their credit growth.”
In order to prepare monetary policies for the coming year, the central bank stated that it would closely monitor the situation, particularly inflation.
Vietnam has perhaps of the quickest developing economy in Asia, upheld by solid assembling and hearty products. Strong credit expansion is another important factor in its economic expansion.
Despite recovering from the COVID-19 pandemic, the economy has recently faced numerous obstacles.
The central bank has increased its policy rates by a total of 200 basis points, allowing the dong currency to weaken against the dollar as a result of lower global demand and a stronger U.S. dollar.
The economy is facing a credit crunch as a result of the rate increases and the government’s move to tighten regulations on corporate bond issuance and restrict their refinancing.
[ad_2]
