Delivering his opening speech, First Deputy Governor Dao Minh Tu said that although the domestic economy had experienced a positive recovery and inflation had remained stable during the first six months, it continued to face many challenges due to the impacts from the global economy and internal issues within the domestic economy. In that context, the SBV had identified two key political tasks: maintaining inflation control and macroeconomic stability, and promoting credit growth to support the economy.
In terms of interest rate management, the SBV has continued to maintain key interest rates to create favorable conditions for credit institutions to access capital resources from the SBV at low costs. In addition, the SBV has also directed credit institutions to further reduce their costs to lower lending interest rates and requested credit institutions to publicize their average lending interest rates, as well as information about the interest rates of various credit packages and programs.
Regarding the exchange rate, the Deputy Governor informed that the SBV had implemented various flexible solutions to keep the exchange rate at an appropriate level while still fully meeting the demands of businesses. As a result, the exchange rate had been quite stable, with the depreciation of the VND against the USD estimated at 4.4%.
Regarding the management of gold trading operations, the Deputy Governor stated that under the leadership of the Government, with good coordination from relevant Ministries and agencies, and the efforts of the SBV, the gap between domestic and international gold prices has been significantly narrowed.
In terms of the credit growth management, the SBV had implemented a lot of solutions, policies and credit programs in a synchronized manner. On December 31, 2023, the SBV had assigned all credit growth targets for 2024 to the credit institutions and publicly announced its principles for determining these targets, allowing proactive implementation by the credit institutions. As of the end of June 2024, the credit growth rate had increased by 6% compared to the end of 2023, with credit focusing on drivers of economic growth and meeting the new trends, such as green credit.
In addition to that, the credit institutions have been actively implementing various credit programs, such as the VND 120,000 billion program for lending to social housing, workers’ housing, and the renovation and reconstruction of old apartment buildings, as well as the credit support program for the forestry and fisheries sectors.
During the first six months of 2024, the stability and safety of the credit institutions' system continued to be maintained, ensuring the legitimate rights of all depositors. Regarding the restructuring of the banking industry, all banks’ restructuring plans have been approved and are now being actively implemented.
Regarding payment activities, the legal frameworks, mechanisms, and policies on non-cash payments and digital banking continued to be amended and improved, creating favorable conditions for the development of non-cash payments, promoting digital banking operations, the application of new technologies, and ensuring security and safety in payment activities. Moreover, the banking sector has promoted communication and financial education to improve the public's knowledge and skills in accessing and using online banking services. As a result, cashless payment and digital transformation in the banking sector have continued to achieve positive results.
Regarding the improvement of the legal framework, Deputy Governor Dao Minh Tu stated that the legal documents on monetary and banking operations had continued to be improved, ensuring both safe and sound banking operations and full compliance with international standards and practices. On January 18, 2024, the revised Law on Credit Institutions was passed by the 15th National Assembly and came into effect on July 1, 2024.
Continuing to manage the monetary policy in a flexible and proactive manner
Regarding the credit growth, the SBV would manage the credit growth and the credit structure appropriately, meeting the capital demand of the economy, to achieve the double targets of controlling the inflation and supporting the economic growth; continuing to promote credit in the key areas and the drivers of the economy; promoting the targeted credit programs and policies; removing difficulties for businesses and the people; strictly controlling credit for the potentially risky areas; reviewing and improving the legal frameworks to facilitate the supply and the access to the banks’ credit.
In the remaining months of the year, the SBV would implement strongly and effectively the Scheme on restructuring the system of credit institutions in association with resolving NPLs in the 2021-2025 period, contributing to developing a prudent banking sector; promoting the resolution of NPLs, improving the credit quality, preventing and minimizing newly arising NPLs; effectively implementing the Plan for Digital Transformation in the banking sector by 2025, with vision to 2030, etc.
Also at the press conference, Deputy Governor Dao Minh Tu and representatives of several SBV entities answered the questions from the media about the monetary policy management and the banking operations…
Source: sbv.gov.vn