Trang Chủ
Overcome difficulties and successfully complete the set tasks
Speaking at the opening of the Conference, Ms. Nguyen Thi Hong, Governor of the SBV, said that there were many difficulties and challenges in 2023 amid slow world economic growth, high inflation, global trade decline, strong fluctuations in basic commodity prices, geopolitical conflicts, and central banks in many countries continued to keep high levels of prime rate. Domestically, the growth drivers of exports, investment, and consumption faced challenges due to low world demand, while businesses faced many difficulties due to the decline of order and market...
Although there are many difficulties and challenges, Governor Nguyen Thi Hong said that in the given context, the Party, National Assembly, and Government have promptly assessed the situation and set policies, directions, and leadership to synchronously, drastically, and flexibly direct and implement solutions.
By the end of 2023, the banking industry has basically achieved the set targets and goals, which are: Contributing to controlling inflation and maintaining macroeconomic stability; The currency and foreign exchange markets were basically stable; Interest rates decreased, bringing interest rates back to pre-COVID-19 rates; Vietnamese Dong is one of the most stable currencies in the region and the world. In 2023, the Vietnamese Dong lost value by about 2.9%; Banking operational safety is guaranteed, and digital transformation content met the targets set in the Project of Banking Industry Digital Transformation...
More specifically, the SBV's report presented at the Conference highlighted seven crucial points in the overall results of the banking industry in 2023, which are:
Firstly, monetary policy management has contributed to stabilizing the macroeconomy and keeping inflation at about 3.2-3.4%. The banking system has provided liquidity to support credit institutions and stabilized the currency and foreign exchange markets. The SBV has purchased foreign currencies to increase state foreign exchange reserves. Inflation was kept stable, and foreign exchange reserves were increased, which contributed to raising Vietnam's national credit rating by Fitch.
Secondly, the SBV has implemented four consecutive reductions in prime rates, with a decrease of 0.5-2.0%/year in the context of increasing and highly pegged global interest rates. At the same time, the SBV has directed credit institutions to reduce costs and synchronously apply measures to reduce lending interest rates. To date, deposit interest rates and lending interest rates of new transactions at commercial banks have decreased by more than 2.5%/year compared to the end of 2022.
Thirdly, exchange rates were managed flexibly by domestic and foreign situations, contributing to absorbing external shocks and stabilizing the foreign exchange market and the currency's value. Liquidity was smooth, and legal foreign currency needs were fully met.
Fourthly, the SBV has synchronously and drastically implemented many solutions, policies, and credit programs, focusing all resources to ensure a sufficient capital supply for the economy and promote economic growth... With this system of synchronous directions and solutions, by December 31, 2023, credit increased by 13.71% compared to the end of 2022.
Fifthly, the stability and safety of the system of credit institutions continued to be maintained, and the legitimate rights and interests of depositors were protected. Bad debts were handled and controlled while the economy, production, and business faced many difficulties, affecting businesses' ability to repay debt.
Sixthly, non-cash payment indicators grew positively. In 2023, the number of non-cash payment transactions increased from 50.3 to 99.1%, and the value increased from 5.4 to 10.8% depending on the payment method. The banking industry was also a pioneer in digital transformation; Many products and services provided to customers have been digitized, of which many operations have been 100% digitized, contributing to supporting access to banking services...
Seventhly, the legal framework on currency and banking activities continued to be improved, ensuring the banking system to be operated safely while closely meeting practical requirements and responding promptly to trends, standards, and international practices.
Five goals and tasks for the bank's operations in 2024
Entering 2024, the SBV forecasted that the global economic outlook and international markets would continue to develop complicatedly. Domestically, the economy is expected to continue facing many difficulties and challenges. In that context, the banking industry has issued specific directions to overcome difficulties and challenges and successfully complete the set goals.
The report on the "Action Program of the SBV to implement the direction of the Government, the Standing Government, and the Prime Minister on banking operations in 2024," stated by the Standing Deputy Governor Dao Minh Tu at the Conference, points out five general goals and tasks for the SBV's operations in 2024, including:
Firstly, operating monetary policy proactively, flexibly, promptly, and effectively, coordinating synchronously, harmoniously, and closely with fiscal policy and other macroeconomic policies to contribute to promoting economic growth associated with macroeconomic stability, controlling the 2024 inflation target at an average rate of about 4-4.5%, and stabilizing the currency market, foreign exchange and banking system. Economic growth should be supported to reach the target of about 6-6.5%.
Secondly, managing credit in harmony with macroeconomic developments to promote economic growth, control inflation, stabilize the macro economy, and ensure the operational safety of credit institutions. The credit growth of the entire credit institution system should be managed to reach about 15% in 2024, with adjustments appropriate to developments and actual situations. The mechanism for managing credit growth should also be innovated.
Thirdly, drastically and effectively implementing the Project "Restructuring the system of credit institutions associated with handling bad debts for the period 2021-2025", contributing to the development of a system of credit institutions operating soundly, with high quality, efficiency, openness, and transparency in accordance with the law and asymptotically meeting international standards and practices. Focusing on effectively implementing plans to handle weak credit institutions and restructuring commercial banks placed under special control according to the direction of competent authorities. Directing credit institutions to promote the handling and recovery of bad debts, improve credit quality, and prevent and restrict new bad debts from arising and striving to have an on-balance sheet bad debt ratio (excluding weak credit institutions) below 3% by 2024.
Fourthly, focusing on researching, editing, and perfecting mechanisms, policies, and regulations on banking organization, examination, and supervision; Strengthening innovation, improving the effectiveness and efficiency of inspection, examination, and supervision of the banking industry. Focusing on inspection, examination, and supervision of areas with potential risks to prevent, detect, and strictly handle risks, shortcomings, and violations of credit institutions, contributing to ensuring security and discipline of the currency and banking market.
Fifthly, effectively implementing the Plan for Digital Transformation in the banking sector by 2025, with a vision to 2030; the Scheme on Cashless Payment Promotion in Vietnam for the 2021-2025 Period; and the Strategy for developing information technology in the banking industry by 2025, with a vision to 2030. Continuing to implement solutions to promote cashless payments, digital banking activities, and security and safety in banking operations.
Striving the hardest to achieve the best results in 2024
Speaking at the Conference, Prime Minister Pham Minh Chinh acknowledged, appreciated, and praised the efforts, high determination, and results achieved by the banking industry in 2023, making an important contribution to the country's overall achievements in a complex and challenging situation.
Emphasizing the outstanding achievements of banking operations in 2023, the Prime Minister stated that the SBV had made an important contribution to the Government's goals of stabilizing the macroeconomy, controlling inflation, ensuring major balances, and stabilizing the foreign exchange market and exchange rates. The SBV has managed monetary policy proactively, flexibly, and promptly and coordinated harmoniously with fiscal policy and other macro policies, contributing to advising on timely policy changes from "tight" to "relaxed and flexible". The value of Vietnamese Dong is kept stable compared to other currencies in the region. These positive results help our economy continue to be highly appreciated by many prestigious international organizations.
With many specific solutions and policies, the SBV has actively supported businesses and people in overcoming difficulties, restoring production and business, and promoting economic growth. Notably, it implemented four consecutive reductions in operating interest rates. It also drastically managed credit growth in the fourth quarter and at the end of 2023. By December 31, 12, credit across the economy increased by about 13.71% compared to the end of 2023.
Notably, in 2023, the amount of deposits into the banking system from residents and economic organizations reached more than 13,5 million billion VND, the highest deposit level in the banking industry's history. This shows people's improved incomes and trust in the Party, State, and banking system. This is an excellent resource for developing the country.
Regarding the operating orientation in 2024, the Prime Minister said that 2024 is a very important year in implementing the 5-year socio-economic development plan 2021-2025 according to the Resolution of the 13th Party Congress and the Resolution of the National Assembly.
The Prime Minister asked the banking industry to continue to thoroughly grasp the "five determinations" that the Government identified in 2023, namely: Determined to overcome all difficulties, overcome all challenges; Determined not to say no, not say difficult, not say yes but not do it; Determined to protect officials who dare to think, dare to do for the common good, think truthfully, speak truthfully, act truthfully, effectively; Determined to remove difficulties, promote production and business, and ensure people and businesses are genuinely benefited; Determined to strive their best to achieve the best results in 2024.
To successfully complete the assigned goals and tasks in 2024 and the period 2021-2025, the SBV and the entire banking industry need to closely follow the Conclusions and Resolutions of the Central Government, the National Assembly, and the Government and materialize the Conclusions and Resolutions into reality to implement specific goals and tasks in 2024.
"Do not let the Government be passive or surprised by monetary policy, do not let congestion in currency circulation, do not let people and businesses lack capital when needing support from the banking system, do not let negative, corruption, loopholes in the management of the banking system, find methods to develop the banking system quickly, comprehensively, and sustainably, make an important contribution to bringing the country to develop quickly and sustainably according to the Resolution of the 13th Congress," the Prime Minister emphasized. The Prime Minister also highlighted the need to manage a harmonious and reasonable balance between growth and inflation, ensuring one promotes the other.
Regarding specific tasks, the Prime Minister requested that developments and the domestic and international economic situation continue to be closely monitored for timely policy responses, focusing on proactive, flexible, timely, and effective monetary policy management in close and harmonious coordination with reasonable, and focused expansionary fiscal policies and other macro policies based on good macroeconomic foundations.
The Prime Minister welcomed the fact that the SBV has new mechanisms for credit management in 2024 by immediately assigning a credit limit of 15% to all credit institutions from January 1 and, at the same time, asked the SBV to pay attention to flexible, timely and appropriate credit management as well as strengthening the monitoring, examination, and supervision of credit growth.
The Prime Minister requested that the banking system continue to drastically and effectively implement credit solutions to remove difficulties, promote production and business development, and help people and businesses access credit better and more accurately, focusing on priority areas and promoting effective implementation of preferential credit programs and policies.
Continuing to drastically implement the Project "Restructuring the system of credit institutions associated with handling bad debts for the period 2021-2025", striving to achieve the set goals; Providing timely and effective solutions to control bad debts and ensure the security and safety of the credit institution system. Actively innovating and enhancing the effectiveness and efficiency of banking inspection, examination, and supervision to promptly prevent, detect, and strictly handle risks, shortcomings, and violations, contributing to ensuring security and discipline in the monetary and banking markets.
Continuing to promote digital transformation, innovation in banking activities, and cashless payments and expanding the digital ecosystem to meet the needs of the economy promptly. The Prime Minister highlighted the need for appropriate credit policies to priority and emerging areas, including green transformation, digital transformation, circular economy, energy transition, strategic and medical infrastructure, medical education...
Focusing on reviewing and perfecting the legal framework to promote safe, sound, smooth, sustainable development of monetary and banking activities, meeting practical requirements, and keeping up with trends, standards, and international practice. Focusing on completing and submitting to the National Assembly for consideration and approval of the Law on Credit Institutions (amended) at the next Conference. Immediately reviewing, evaluating, amending, and supplementing legal documents regulating operations inconsistent with practice creates favorable conditions for businesses and people to access capital.
Focusing on developing the staff, building a leaner, more effective, and efficient apparatus, and restructuring and improving the quality of the staff, civil servants, and public employees. Further promoting innovation, daring to think, do, and take responsibility.
Strengthening the apparatus and enhancing inspection, examination, and supervision activities to prevent, warn, and stop early, from afar, with focus and decisive action. "Treatment must be decisive until the patient becomes healthy," identified as one of the key breakthrough tasks in 2024.
Promoting simplification, administrative procedure reduction, and maximum decentralization of authorities and powers so that subordinates can handle the rapid developments of banking activities promptly. Strengthening the close, synchronous, and effective coordination. Continuing to innovate and improve communication work, especially guiding people, such as giving a warning that the higher the interest rate, the greater the risk...
Regarding credit institutions and banking associations, the Prime Minister praised their maturity and rapid development. International partners highly valued some commercial banks and bought their shares...
The Prime Minister hopes that banks will continue to earnestly implement and comply with the guidelines and policies of the Party, State, Government, and SBV, ensuring effective, safe, and sound business; share more with people and businesses in the context of many difficulties and challenges, develop together in the common ecosystem, further promote the trust of people and businesses; Review conditions and procedures (especially collateral and lending procedures) to support businesses and people in accessing credit capital more conveniently, while ensuring system safety. The Prime Minister warned the banking system to avoid the situation where people go to the bank to deposit money at a bank,, that bank’s staff introduces investment channels with higher interest rates and profits, but they are riskier.
The Prime Minister affirmed the Government's opinion in protecting economic entities' legitimate rights and interests, not criminalizing economic relations but strictly handling violations.
As the economy's lifeblood, the tasks and requirements set for the banking industry in 2024 and the coming time are very high and challenging. Still, the Prime Minister believes that the banking industry will continue to bring into play achievements, strive to overcome difficulties and challenges, successfully complete tasks and responsibilities assigned by the Party, the State, and the people, and achieve results in 2024 that are higher than in 2023.
Thanking Prime Minister Pham Minh Chinh for his comprehensive and profound comments at the Conference, Governor Nguyen Thi Hong said that this is a great source of encouragement for the banking industry to overcome 2024, which is forecasted to have many difficulties and challenges. "The Party Committee and the SBV's Board of Directors seriously adopt the Prime Minister's instructions. The banking industry promises to strive to promote the results achieved to achieve the goals and fulfil tasks set in 2024 successfully," SBV Governor Nguyen Thi Hong expressed.
Department of Research and International Cooperation (translation)
