Trang Chủ
That is one of the key tasks of the banking industry in the remaining 6 months of 2023, informed by the State Bank of Vietnam (SBV) at the Conference to review the first 6 months of the year and implement tasks for the remaining 6 months of 2023 of the banking industry took place on July 15, 2023.
Accompanying businesses, people and the economy
Following the content of the Resolutions of the National Assembly and the Government and the macroeconomic and monetary developments, in the first 6 months of 2023, the SBV focused on synchronously and drastically implementing solutions to manage the monetary policy and banking activities.
"In which, operating monetary policy firmly, flexibly, proactively, timely and effectively, contributing to controlling inflation, stabilizing the macro-economy and supporting and prioritizing growth" – First Deputy Governor Dao Minh Tu affirmed.
Specifically, in terms of interest rate management, the SBV has continuously adjusted interest rates down 4 times with a reduction of 0.5-2.0%/year in the context that the world interest rate level continues to rise and stay at high level; creating conditions for credit institutions to access capital from the SBV at a lower cost, thereby reducing lending interest rates to assist customers in removing difficulties, restoring production and business and continue to reduce the market interest rate level.
In addition, the SBV has implemented many synchronous measures such as issuing many guiding documents, working directly with credit institutions to request the implementation of measures to reduce deposit interest rates, reduce costs, thereby creating room to reduce lending interest rates for customers; coordinate with the Banking Association to mobilize the consensus of member credit institutions to continue reducing lending interest rates.
“With the efforts and determination of the whole industry, the market interest rate level has tended to decrease. By the end of June 2023, the average deposit and lending interest rates of new transactions in VND of commercial banks decreased by about 1.0% per year compared to the end of 2022. Due to the policy lag, it is expected that the lending interest rate level for the economy will continue to decrease in the near future” - Deputy Governor Dao Minh Tu informed.
Regarding exchange rate management, the SBV has closely followed the market situation to manage the exchange rate flexibly and appropriately, synchronously coordinating monetary policy tools to stabilize the foreign currency market, contributing to controlling inflation and stabilizing macroeconomic. The domestic foreign currency market and exchange rate are relatively stable, market liquidity is smooth, and legal foreign currency needs are fully met. The SBV can buy foreign currency from credit institutions to supplement the state foreign exchange reserves.
Regarding credit management, the SBV has continued to administer appropriate credit solutions, ensuring capital supply for the economy but not being subjective to inflation risks. Right from the beginning of the year, the SBV has oriented credit growth for the whole year to about 14-15% (higher than the previous years), with adjustments in line with the actual situation, meeting the capital demand of credit to the economy in order to contribute to controlling inflation and supporting economic growth. The SBV has allocated credit growth targets for each credit institution. At the same time, the direction is to direct credit to production and business fields, priority fields (agriculture and rural areas, exports, small and medium-sized enterprises, supporting industries, and technology-applied enterprises) and the drivers of economic growth; strictly control credit in potentially risky areas.
On July 10, 2023, the SBV increased the credit growth target in 2023 for credit institutions with a system-wide allocation of about 14%.
By June 30, 2023, the credit to the economy reached over VND 12.49 million billion, increasing 4.73% compared to the end of 2022. In which, the credit structure continued to focus capital on the manufacturing sector, a priority field according to the policy of the Government, positively contributing to GDP growth of the whole country.
The whole banking sector has also made great efforts, showed responsibility, and coordinated with relevant ministries to implement drastically and synchronously many specific solutions to create conditions for businesses and people to have more favorable access to credit such as:
Firstly, urgently review and promulgate Circular No.06/2023/TT-NHNN amending and supplementing a number of articles of Circular No.39/2016/TT-NHNN, in the direction of supplementing a number of regulations, such as: loans by electronic means; lending to customers to repay loans before maturity at other credit institutions; lending to customers to pay foreign loans in the form of deferred payment of goods and services…
The SBV is still urgently reviewing lending procedures and fees and applicable fees and charges by credit institutions to consider and direct credit institutions to cut unnecessary fees and charges.
Secondly, promulgate Circular No.02/2023/TT-NHNN stipulating that credit institutions and foreign bank branches restructure debt repayment terms and maintain debt groups in order to support customers in difficulty.
By the end of June 2023, there were over 18,800 turns of customers whose repayment term was restructured and the debt group remained unchanged; the total outstanding balance (principal and interest) is structured to keep the debt group unchanged at nearly VND 62,500 billion.
Thirdly, promulgate Circular No.03/2023/TT-NHNN, contributing to increasing liquidity, removing difficulties, and promoting the development of the corporate bond market.
The SBV has organized credit symposiums and working sessions to identify difficulties and problems and propose solutions for a number of industries and fields such as small and medium-sized enterprises, cooperatives, and real estate, petroleum, aquatic products, forest products, key agricultural products; direct credit institutions to continue to allocate capital, develop and diversify consumer credit products, create favorable conditions to meet people's legitimate needs, and contribute to limiting ursury.
For the real estate sector, the SBV has directed credit institutions to focus their capital on projects that are legally qualified, capable of selling products, repaying loans in full and on time, meeting real needs of the people, especially projects of social housing, worker housing, housing suitable to people's incomes and types of real estate for production, business and social security with high efficiency, debt repayment capacity and development; strictly control the granting of credit to the real estate sector with a high risk ratio, perform well the valuation of collateral assets, especially in areas with the phenomenon of land fever and real estate. Directing commercial banks to implement a loan program of VND 120,000 billion for investors, buyers of social housing, worker housing, renovation and rebuilding projects of old apartments from April 2023 equal to the resources of commercial banks with a lower lending rate of 1.5-2% than the average lending rate of banks in the market.
In addition to commercial credit, the SBV also facilitates the Bank for Social Policies to implement preferential credit programs for the poor, other policy beneficiaries and three national target programs. As of June 30, 2023, the total outstanding policy credit reached VND 304,431 billion, increasing 7.4% compared to 2022; in which the program of socio-economic recovery and development reached over VND 19 trillion; the national target program for socio-economic development in ethnic minority and mountainous areas according to Decree No.28/2022/ND-CP reached over VND 1,500 billion; the national target program on building new rural areas has reached more than 1.7 million billion VND.
In the restructuring process of the system of credit institutions associated with bad debt settlement, the SBV continues to drastically implement the tasks and solutions stated in the Project on Restructuring the system of credit institutions associated with bad debt settlement in the 2021 -2025 period.
Digital transformation and non-cash payments are promoted. The legal framework for payment activities and bank number conversion continues to be perfected. The whole industry has actively implemented the Project on developing the non cash payment project for the period of 2021-2025 and the Plan on digital transformation of the banking sector to 2025, with a vision to 2030.
The SBV has also actively developed plans, deployed connections, and exploited population information at the National Population Database, chip-based citizen ID cards, and electronic identification accounts (VNeID) for public services, credit information and anti-money laundering. At the same time, coordinate with the Ministry of Public Security to sign and accelerate the implementation of the Plan to implement the tasks in Project No.06...
Agreement for a common mission
Besides the effective management of the SBV, it is impossible not to mention the consensus, active response and serious implementation of credit institutions. Credit institutions have issued many policies and programs to support businesses and people, especially businesses that are able to recover.
Vice Chairman and General Secretary of the Banking Association Nguyen Quoc Hung said that credit institutions have seriously implemented their commitments to reduce deposit and lending interest rates at the call of the Banking Association, thereby restoring the common deposit interest rates, reducing interest rates for new loans and existing loans with a reduction of 0.5-3%/year.
Specifically, according to Agribank Chairman Pham Duc An, since the beginning of the year, Agribank has spent trillions dong to support businesses and people. The bank has reduced lending interest rates 7 times. The lending interest rate has decreased by 2-4%/year compared to the end of 2022. They also actively restructure debt according to Circular 02 for more than 2,000 customers....
BIDV Chairman Phan Duc Tu informed that the bank has done research and developed a separate mechanism and program for each customer; promoting credit financing according to the supply chain, implementing a conference to connect banks and businesses; reducing lending interest rates; lowering lending rates for both new and old loans. In the last 6 months, BIDV has lowered interest rates 4 times with a reduction of 0.5-2% depending on each object. BIDV also launched 25 credit packages with a scale of VND 484,000 billion.
Vietcombank's General Director Nguyen Thanh Tung said that in the first 6 months of the year, Vietcombank pioneered 10 reductions in deposit interest rates and 5 reductions in lending rates for all segments of individual and corporate customers. They proactively deploy a series of lending programs with preferential interest rates for priority segments and subjects: preferential VND and USD short-term lending programs; loan program for FDI customers...
According to Mr. Nguyen Duc Vinh - General Director of VP Bank, the bank itself has done a lot to respond to the policy of the SBV. The bank has accepted a reduction in profit, as VPBank estimates a decrease of nearly VND 1,000 billion in profit. Compared to the interest rate in the previous period, VP Bank now has an interest rate product reduced by nearly 5%.
10 key solutions of the banking industry in the last 6 months of the year
In the last 6 months of 2023, on the basis of sticking to the goals set out at the beginning of the year and the guidelines and directions of the National Assembly, the Government, the Prime Minister, the SBV determined to focus on directing the implementation. Key solutions include:
Firstly, closely follow macroeconomic developments, domestic and international financial and monetary markets to continue operating monetary policy and banking operations firmly, proactively, flexibly, timely and effectively coordinate harmoniously, reasonably and closely with fiscal and other macroeconomic policies. Meanwhile, interest rate management is consistent with the macro balance, inflation and monetary policy objectives. Continue to implement solutions to reduce lending interest rates, contribute to removing difficulties for people and businesses, and support economic recovery.
Secondly, manage volume growth and rational credit structure, meet the credit capital needs of the economy in order to contribute to controlling inflation and supporting economic growth. Continue to direct credit institutions to increase credit throughout the year at a reasonable rate; directing credit capital into production and business fields, priority fields and growth drivers of the economy according to the Government's policy; ensure safe and effective credit operations; continue to strictly control credit in potentially risky areas; create favorable conditions for businesses and people to access bank credit capital.
Continue to direct commercial banks to deploy a credit package of VND 120,000 billion from the capital of commercial banks in accordance with the direction of the Government. Step up the implementation of the banking sector's tasks in the Socio-economic Recovery and Development Program and the National Target Programs. Continue to review and research solutions to support people and businesses in a number of industries and fields under the direction of the Government and the Prime Minister...
Closely monitor and supervise the implementation of the policy of restructuring the repayment term and keeping the debt group unchanged in order to support customers in difficulty according to Circular 02/2023/TT-NHNN; promptly guide and remove arising problems (if any).
Thirdly, continue to implement the Project on Restructuring the system of credit institutions associated with bad debt settlement in the 2021-2025 period and bad debt settlement in accordance with Resolution No.42. Close monitor and supervise directing credit institutions to develop and implement drastically and effectively restructuring plans associated with bad debt settlement; strengthen credit quality control, handle bad debts, set up risk provisions in accordance with the law; actively implement measures to control and limit bad debts arising in order to ensure the bad debt ratio on the balance sheet at a safe level.
Fourthly, increase the efficiency and effectiveness of examination work; improve the effectiveness of macro and micro safety supervision. In which, focusing on implementing the inspection plan in 2023; continue to comprehensively monitor the activities of credit institutions to promptly detect and warn potential risks.
Fifthly, improve the quality and effectiveness of money laundering prevention and combat, especially the analysis and handling of suspicious transaction reports. Continue to carry out the tasks after the multilateral assessment of Vietnam's mechanism of prevention and combat against money laundering and terrorist financing.
Sixthly, continue to review, amend and supplement the legal framework, mechanisms and policies on monetary, banking operations, ensuring the money market and banking operations in a safe, healthy and informed manner. transparent and sustainable. In which, focus on completing the draft Law on Credit Institutions (amended) to report to the Government and National Assembly at the 6th Session held in October 2023; continue to study and review the necessity of amending the Law on the State Bank of Vietnam and the Law on Deposit Insurance.
Seventhly, continue to promote digital transformation in banking and non-cash payment activities, meeting the requirements of new business models and products and services on the basis of information technology, digital banking, digital payment. Enhance security and safety in payment and digital transformation activities.
Eighthly, continue to drastically implement administrative reform, improve the business environment, improve the credit coefficient and trust of people and businesses in the mechanisms, policies and operations of the banking sector. Strengthen discipline and operating discipline in all monetary and banking activities.
Ninthly, proactively and promptly inform and communicate about the SBV's operating mechanisms, policies, and solutions, issues of public concern related to currency and banking activities and strengthen trust of people, businesses and investors in the macroeconomic policy of the Government and the operation of the SBV.
Tenthly, continue to seriously and effectively implement other tasks of the sector.
Communication Department
