Trang Chủ
The conference was participated and directed by Deputy Prime Minister Ho Duc Phoc, Governor of the SBV Nguyen Thi Hong and the entire Board of Directors of the SBV, leaders of units under the State Bank of Vietnam, credit institutions... at the central bridge and connected to the bridges of the State Bank branches in provinces and cities.
Effectively operating monetary policy to support economic growth
Speaking at the conference, Deputy Prime Minister Ho Duc Phoc reviewed important results in socio-economic development in 2024, thereby praising and appreciating the contributions of the
SBV banking sector to the country's development.
Accordingly, the SBV has operated monetary policy reasonably and effectively; interest rates have been stable and tend to decrease to support economic development; good credit growth; stable exchange rates; credit support for customers affected by storm No. 3; restructure two banks; liquidity is guaranteed...
Agreeing with the directions and tasks set by the SBV for 2025, Deputy Prime Minister Ho Duc Phoc emphasizes several key contents that the banking sector needs to focus on implementing:
Continue to closely monitor the world economic situation to prepare promptly, appropriately, and effective management solutions; coordinate monetary policy, fiscal policy, and other policies to ensure the safety of the banking system, reduce bad debt, and provide capital to promote economic development.
Deputy Prime Minister Ho Duc Phoc noted that the restructuring and streamlining of the SBV's apparatus must ensure the normal operation of the banking system to serve socio-economic development without interruption. The Deputy Prime Minister also requested the State Bank and credit institutions to continue to effectively implement capital support solutions for businesses, especially small and medium-sized enterprises, in the spirit of "win-win."
Strengthening security and ensuring safety in banking payment activities, promoting the development of digital banking and electronic payments, and improving customer convenience. Continuing to implement measures to support capital for green development, green production, green consumption, and clean energy; handling bad debts; restructuring weak banks.
In addition, the Deputy Prime Minister also noted that the SBV must operate monetary policy, interest rates, and exchange rates stably and reasonably, control inflation well, and manage credit appropriately to promote development.
Strengthen anti-money laundering; continue to improve the institutional system in the banking sector; promptly deploy measures to support customers facing risks due to natural disasters and epidemics.
In particular, the SBV needs to consider the Vietnam Bank for Social Policies as an important tool to ensure social security in order to have appropriate and effective investment measures.
"In the coming time, SBV needs to strengthen inspection and control work, promptly prevent violations of the law, ensure transparency and equality among banks and enterprises, and ensure the safety of the banking system," Deputy Prime Minister Ho Duc Phoc emphasized.
The Banking industry with a lot of important milestones in 2024
Speaking at the conference, SBV Governor Nguyen Thi Hong said that from the beginning of the year, the SBV Party Committee has clearly identified the orientation and key tasks and, on that basis, assigned specific tasks to each field of work. Thanks to the strong direction from the Government and the Prime Minister, along with the close coordination with central and local ministries, branches, and the support of businesses and people, 2024 is a year marked by the success of the banking system's operations, demonstrated through the following aspects:
Monetary policy management has contributed to controlling the average inflation in 11 months at 3.69%. The SBV has also had solutions to remove difficulties as well as manage credit, thereby contributing to supporting economic growth at a high level compared to other countries in the world and the region. The lending interest rate level has decreased compared to the end of 2023. The basic exchange rate is stable in the context of strong fluctuations in the international market. International organizations highly appreciate the results of monetary and banking policy management.
"The SBV has made significant progress in restructuring the banking system and weak addressing banks. In 2024, it compulsorily transferred two of the four zero-dong banks." The remaining two banks are being submitted to competent authorities for early approval in 2024. With a sense of urgency, ait is hoped that in 2024, all four banks will be compulsorily transferred.
In the field of payment and digital transformation, in 2024, the banking industry continues to affirm its retaining and leading role, receiving high appreciation from the National Steering Committee on Digital Transformation. In addition, other activities of the SBV also achieved positive results.
Specifically, in interest rate management, the SBV continues to maintain the operating interest rates in the context of world interest rates remaining high, creating conditions for credit institutions to access capital sources from the SBV at low costs, thereby creating conditions to support the economy; continue to direct credit institutions to reduce operating costs to strive to reduce lending interest rates, and at the same time require credit institutions to report and publicly announce the average lending interest rate, the difference between deposit and average lending interest rates on the credit institution's website . According to the interest rate report of commercial banks, up to now, the lending interest rate level has continued to decrease by about 0.96%/year compared to the end of 2023.
In credit management, in 2024, implementing the direction of the Government and the Prime Minister on flexible, effective, and timely credit growth management, meeting credit capital for the economy. The SBV has proactively adjusted the credit growth target for credit institutions twice on August 28, 2024, and November 28, 2024, according to specific principles, ensuring publicity and transparency in the condition that inflation is well controlled below the target level and promptly meet capital for the economy, supporting production and business development.
The SBV also requires credit institutions to implement instructions on monetary and credit activities strictly, regulations on credit granting to improve business efficiency, ensure system safety and stabilize the monetary market; increase credit growth safely, effectively, and healthily; limit the increase and occurrence of bad debts, ensure the safety of credit institutions' operations; direct credit to production sectors, priority sectors, sectors that are the driving force for economic growth according to the policies of the Government and the Prime Minister; strictly control sectors with potential risks; continue to maintain stable deposit interest rates and make further efforts to reduce lending interest rates through cost reduction, simplification of administrative procedures, increased application of information technology, and digital transformation.
With the synchronous solutions of SBV, as of December 13, credit in the whole economy increased by about 12.5% compared to the end of 2023. Credit focus on production, business, and priority sectors.
At the same time, the SBV continues to direct credit institutions to promote the implementation of credit programs such as The 120,000 billion VND program for loans for social housing, workers' housing, apartment renovation and reconstruction projects, Credit programs for forestry and fishery sectors... In particular, the banking sector has promptly implemented solutions to support and remove difficulties for customers affected by storm No. 3.
In managing gold trading activities, with the attention and direction of the Government, the synchronous solutions of the SBV, and the coordination of relevant ministries and branches, up to now, the initial basic goal of handling and controlling the price difference between SJC gold bars and world gold prices within a suitable range have been achieved.
The stability and safety of the credit institution system continues to be maintained, and the legitimate rights of depositors are guaranteed. Bad debts are focused on being handled and controlled in the context of economic and business difficulties, affecting the debt repayment capacity of an enterprise. Finally, the legal system on currency and banking activities continues to be focused on completion, ensuring the banking system operates safely and closely following practical requirements, responding promptly to international trends, standards, and practices. The SBV has been and is in the process of drafting and submitting to competent authorities for amendments and supplements to documents detailing and guiding the implementation of the Law on Credit Institutions 2024 to ensure synchronous implementation with the provisions of the law.
In the coming time, the SBV will continue to closely monitor market developments and the domestic and foreign economic situation to proactively, flexibly, promptly, and effectively manage monetary policy, closely and harmoniously coordinate with fiscal policy to support economic growth priorities, promote production and business, and at the same time contribute to stabilizing the macro economy and controlling inflation.
According to the SBV, 2025 is the final year of implementing the socio-economic development plan for the 2021-2025 period, which is of importance in preparing for the new Government term. Therefore, the SBV will focus on key tasks, specifying groups of solutions to achieve the set goals and improve the banking effectiveness of monetary policy management and operations.
Communication Department (translation)
