On the afternoon of October 17, the State Bank of Vietnam (SBV) held a regular press conference for the third quarter of 2024.
Announcing the information, Permanent Deputy Governor of the State Bank of Vietnam Dao Minh Tu said that up to this point, credit growth in the entire economic sector reached 9% compared to the end of 2023, reaching 14.7 million billion VND.
The Standing Deputy Governor said: There is no such thing as banks only mobilizing capital without releasing capital to the economy. The outstanding debt is higher than the mobilized capital, showing that banks mobilize as much as they lend, and even use the capital from the bank's own equity.
According to Deputy Governor Dao Minh Tu, recently, monetary policies of many countries have changed, for example, the US cut interest rates, leading to a number of countries reducing interest rates to create conditions for economic growth. This factor also affects our country's economy.
"I think that with the current growth rate, the target of GDP growth and inflation control is completely achievable.
I went on business trips and surveyed many localities and found that businesses have fundamentally resolved the difficulties caused by the COVID-19 pandemic, orders have returned, and the indicators are generally quite positive. Although there are still difficulties such as public investment disbursement, some key projects are still facing difficulties, but the Government is focusing on resolving them" - the Permanent Deputy Governor said.
Notably, in the third quarter of 2024, storm No. 3 caused a huge impact, causing the economy to stagnate. The banking industry alone had 160 trillion VND of outstanding debt affected.
"If there was no storm No. 3, our economy would have had good growth momentum. The government has given very strong instructions to achieve and exceed this year's plan," said Mr. Tu.
From that context, the Permanent Deputy Governor said that the State Bank continues to operate monetary policy proactively and flexibly.
Firstly, monetary policy management has contributed to stabilizing the macro-economy, controlling inflation, supporting liquidity for credit institutions, and stabilizing the monetary and foreign exchange markets.
Second, the State Bank continues to maintain the operating interest rates to facilitate credit institutions to access capital from the State Bank at low costs, contributing to supporting the economy; directing credit institutions to continue to reduce costs to reduce lending interest rates, publicize average lending interest rates, the difference between average deposit and lending interest rates as well as information on lending interest rates of credit packages, programs, and products on the bank's website. As a result, the interest rate level continues to decrease compared to the end of 2023.
Third, the State Bank of Vietnam manages exchange rates flexibly and appropriately, contributing to absorbing external shocks; at the same time, synchronously coordinates monetary policy tools.
Fourth, many solutions, policies and credit programs have been implemented synchronously and drastically by the State Bank, ensuring sufficient capital supply for the economy and promoting economic growth.
To facilitate credit institutions to provide credit capital for the economy, on December 31, 2023, the State Bank assigned all credit growth targets for 2024 to credit institutions and publicly announced the determination principles so that credit institutions can proactively implement credit growth.
However, in the context of low credit growth in the economy; the credit growth of credit institutions is uneven, some credit institutions have low growth, even negative growth while some credit institutions have increased close to the target announced by the State Bank, on August 28, 2024, the State Bank announced the additional credit growth for credit institutions to ensure publicity and transparency. Accordingly, from August 28, 2024, credit institutions with a credit growth rate in 2024 reaching 80% of the target announced by the State Bank in early 2024 will be proactively adjusted to increase credit balance based on the credit institution's rating score.
"The State Bank's viewpoint is to operate an open monetary policy to support more capital for the economy. The State Bank will continuously support capital and ensure liquidity for banks.
In the context of macroeconomic conditions that ensure inflation, support growth, and ensure exchange rate relations, we will leave open our views on interest rate management in the coming time.
Credit will still focus on key projects, BOT projects, industry credit programs, policy credit..." - said the Permanent Deputy Governor.
