The Government Office has just announced the Prime Minister's conclusion on solutions to remove difficulties in credit growth for production and business, promoting growth and macroeconomic stability.
Accordingly, the Prime Minister directed that credit institutions need to closely follow the development of sectors and industries in the country to have flexible approaches to credit provision for the economy, production and business with a focus on three driving forces of growth including consumption, export, and investment.
Moreover, commercial banks and credit institutions must have timely, flexible and effective responses and policy response in managing and promulgation of credit policy mechanisms must be close to reality.
Under the PM’s instruction, the State Bank of Vietnam has to direct credit institutions to review lending procedures and collateral to support businesses and people in accessing credit capital more conveniently and easily. Simultaneously, credit institutions must ensure the safety of the whole system.
The Prime Minister also requested to review, consolidate and improve the quality of operations of non-bank credit institutions such as financial companies, financial leasing companies, people's credit funds, and financial micro institutions to stimulate credit demand, increase the supply of official credit capital, and contribute to the elimination of black credit organizations.
Along with that, PM Chinh ordered commercial banks and credit institutions to continue to have timely, flexible and effective solutions for disbursement of the VND120 trillion (US$5.12 billion) credit program for preferential loans to develop social housing, worker housing, and rebuild old apartment buildings. He emphasized that tough penalties will be imposed on commercial banks that asked customers to do additional requirements making it difficult for businesses investing in real estate projects and home buyers to access credit capital. Furthermore, a preferential credit package of VND 15,000 billion for the forestry and fisheries sectors should be continued.
The Prime Minister also requested to promote the disbursement of capital for a credit package of VND40,000 billion with 2 percent interest rate support from the state budget under the economic development recovery program. Related agencies should have proposals on new support packages for green and digital transformation projects.
In particular, the Prime Minister requested to complete the compulsory purchase of banks of poor-performing commercial banks at zero Vietnamese dong according to the direction of the Politburo in 2023.
The Prime Minister also requested to strongly and more effectively strengthen the inspection, examination and supervision of credit institutions. Inspectors should give warnings or throw the book on violating establishments. Responsible agencies should carry out inspection, examination, and supervision and strictly handle violations according to regulations regarding cross-ownership at credit institutions and credit granted to businesses in the ecosystem. Giving consultation, and introduction of corporate bonds and insurance are also prohibited under the PM’s instruction. Inspections must be completed in January 2024.
The Prime Minister assigned the Ministry of Public Security to work with relevant agencies to continue the policy and handle intentional violations as per the present regulations.
Additionally, the Ministry of Public Security has drastic solutions to handle violations of organizations and individuals disguising currency businesses, creating conditions to strengthen and develop the system of financial institutions lending to consumers with the aim of preventing activities of black credit organizations.
Last but not least, the Ministry of Public Security should closely liaise with the State Bank of Vietnam to urgently have solutions to prevent and handle cross-ownership, negative credit growth limits, illegal lending, and manipulation at banks. credit institutions for the healthy development of credit institutions and national financial and monetary security.
