Nguyen Thi Hong, Governor of the State Bank of Vietnam (SBV), said that in the first nine months of 2022, the SBV has been leading monetary policy proactively and flexibly while coordinating it closely with political budgetary and macroeconomic measures to contribute to the recovery of the economy. It also remained vigilant in the face of inflationary risks to help maintain macroeconomic stability.
The SBV submitted to the government for approval and implementation a policy of supporting the interest rate of 2% for businesses through commercial banks. Cashless payment has increased sharply while the restructuring of credit institutions along with the settlement of non-performing loans has been promoted, inspection and monitoring carried out frequently and strictly, she noted.
The Prime Minister applauded the efforts of the entire banking sector, saying the sector has made important contributions to the country’s achievements. He said the sector simultaneously fulfilled two tasks: helping to curb inflation and stabilize the macro-economy, and providing credit to the economy.
He cited statistics showing that by the end of September, total credit supply had reached VND 11.55 quadrillion ($478.5 billion), up 10.8 percent from the previous year. end of 2021. Commercial banks have been steadily growing in terms of size, quality, and financial capacity. The total assets of joint-stock banks now stand at approximately VND 7.5 quadrillion, including more than VND 7 quadrillion from the four state-owned commercial banks.
In particular, commercial banks have also exercised their social responsibility by actively engaging in poverty alleviation, responding to natural disasters, and donating medical supplies and money to the Covid-19 vaccine fund.
During the meeting, the Head of Government also highlighted some shortcomings, difficulties and challenges facing the banking sector, including the rapid and complex changes in the global situation, the surge in inflation and interest rates in the world and the sharp depreciation of many currencies. Meanwhile, Vietnam’s economy is still small and has great openness but limited resilience; people and businesses have been hit hard by the Covid-19 pandemic; equity, corporate bond and real estate markets revealed some problems; and the financial strength, quality, management capacity and technology of commercial banks remain modest.
Prime Minister Chinh instructed the SBV to maintain a tight, prudent yet proactive, flexible and effective monetary policy while harmoniously combining it with fiscal and other policies to control inflation, stabilize the macro economy, boost growth and to guarantee the great balances of the economy.
He also asked the central bank to carry out the plan for restructuring credit institutions and settling bad debts; intensify the treatment of underperforming commercial banks; revise and align the legal framework on monetary, credit and banking issues with international practices and the Vietnamese situation; increase inspection and supervision; improve staff capacity; ensuring system security; and continue the digital transformation of the sector.
For commercial banks, he asked them to strengthen their governance, management and financial capacity; improve the quality and efficiency of service and credit; ensuring transparency; modernize operations and improve competitiveness; develop digital banking and cashless payment; expand their networks; improving the efficiency of credit distribution; stimulate non-credit services and green credit; and continue to take social responsibility.
The Prime Minister also requested ministries and sectors to work closely with the SBV to address relevant issues, especially commercial banks’ opinions and proposals, so that the sector can develop strongly and sustainably to contribute more to development. national.