HANOI (Reuters) – The State Bank of Vietnam (SBV) said on Wednesday it had raised credit growth caps for some banks this year, based on their latest operating results, market developments and proposals.

The move is intended to boost lending for some banks without encouraging excessive credit growth, and only banks that meet certain interest rate and bad debt management requirements will be allowed to adjust credit growth upwards. their credit, the SBV said. He did not name any bank.

In 2012, Vietnam experienced a non-performing loan crisis that has been blamed for dampening several years of meteoric growth in Southeast Asia’s manufacturing hub.

“Thanks to this increase, businesses and individuals will have better access to capital. However, the capital granted must go to priority areas for the government, such as production, and not to areas at risk,” the SBV said.

Several local banks have already approached the overall credit growth limit of 14% for 2022, and the risk remains of a further increase in non-performing loans, he added.

Vietnam is targeting growth of 6.0% to 6.5% and inflation below 4% this year. Consumer prices in August rose 2.89% from a year earlier. Credit growth was 9.91% at the end of 2021.

(Reporting by Phuong Nguyen; Editing by Martin Petty and Kanupriya Kapoor)