The strict credit standards of credit institutions will not affect their credit support for businesses and individuals affected by the Covid-19 pandemic, deputy governor of the State Bank of Vietnam (SBV) Dao Minh Tu said at a press conference on June 2.
Responding to concerns that the refusal by credit institutions to lower credit standards would make it hard for businesses and individuals to access credit packages, Tu noted that lowering credit standards meant reduced credit safety for credit institutions and the country’s banking and financial system. Therefore, these institutions have to comply with safety regulations.
“Credit support for businesses and credit safety must always happen in parallel,” Tu said.
SBV has taken a number of measures to support businesses affected by the Covid-19 pandemic including debt rescheduling. From January to May, SBV lowered interest rates and interest rate ceilings twice for prioritised sectors.
As of May 20, capital mobilisation increased 1.85%, while credit grew 1.32 percent compared to late 2019.
https://english.thesaigontimes.vn/77044/stringent-credit-standards-will-not-affect-lending-sbv.html
