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Prime Minister Pham Minh Chinh attends the conference to review banking activities in the first 6 months |
This morning, in Hanoi, Prime Minister Pham Minh Chinh attended a conference to review banking activities in the first 6 months of the year and implement tasks for the last 6 months of 2023.
At the conference, the State Bank of Vietnam (SBV) reported that, following the resolutions of the National Assembly and the Government and the macroeconomic and monetary developments, in the first 6 months of 2023, the SBV has focused on the synchronous implementation of measures as well as drastic management of monetary policy and banking activities.
Regarding interest rate management, in the context that the world interest rate level continues to increase and anchor at a high level, implement the policy of the National Assembly, the direction of the Government and the Prime Minister on reducing lending interest rates in order to remove difficulties for the national economy, businesses and people, the State Bank has continuously adjusted down 4 times the interest rates with a reduction of 0.5 - 2 percent a year.
With the sector’s determination and efforts, the market interest rate level has tended to decrease. By the end of June, the average deposit and lending interest rates of new transactions in Vietnamese dong of commercial banks decreased by about one percent per year compared to the end of 2022. Commercial banks have actively adjusted lending interest rates and implemented preferential credit programs/packages to reduce lending interest rates with a reduction of about 0.5 percent - 3 percent a year for new loans.
In exchange rate management, the State Bank of Vietnam has closely followed the market situation to manage the exchange rate appropriately while combining monetary policy tools to stabilize the foreign currency market, contributing to the control of inflation and macroeconomic stability.
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Governor of the State Bank Nguyen Thi Hong |
According to the central bank, the domestic foreign currency market and exchange rate are relatively stable, market liquidity is smooth, and the legal needs of foreign currency are fully met. The State Bank can buy foreign currencies from credit institutions to supplement the state foreign exchange reserves. About the credit growth target in 2023, the State Bank of Vietnam on July 10 increased the credit growth target in 2023 for credit institutions with a system-wide delivery rate of about 14 percent.
The credit balance of the economy reached over VND12.49 quadrillion (US$528,893,952,962), an increase of 4.73 percent compared to the end of 2022. Of VND12.49 quadrillion, credit institutions continued to provide capital to the manufacturing sectors on the list of priorities, according to the policy of the Government, actively contributing to the country's GDP growth.
The State Bank of Vietnam has directed commercial banks to deploy a credit program of VND 120 trillion for investors, buyers of social housing, worker housing, and renovation and reconstruction projects of old apartment buildings. Commercial banks will provide credit programs whose capital will be taken from their own capital with a lower lending rate of 1.5 percent - 2 percent of the average lending rate of banks in the market according to the Government's direction.
In the coming time, the SBV will continue to keep an eye on macroeconomic developments, domestic and international financial and monetary markets for management of the monetary policy and banking operations in harmony with fiscal policy and other macroeconomic policies.
Moreover, the SBV will continue urging credit institutions to reduce lending interest rates and cut unnecessary fees to support businesses’ recovery and production development.
The State Bank continues to direct credit institutions to pour capital into production and business fields in the list of priorities according to the Government's policy as well as strictly control credit in potentially risky areas while creating favorable conditions for businesses and people to access bank credit capital. Commercial banks were directed to carry out a credit package of VND 120,000 billion from the capital of commercial banks in accordance with the Government’s guidelines.
