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Prime Minister Nguyen Xuan Phuc speaking and leading the conference on the implementation of banking duties in 2021 – Photo: VGP
Speaking at the conference on the implementation of banking tasks in 2021 on December 26, Prime Minister Nguyen Xuan Phuc said that in the past 5 years, the banking industry has come a long way and has successfully completed assigned tasks.
The strongest operating rate reduction in the region
In 2020, we will face many challenges, especially the translation of COVID-19. The banking industry, as a vital element of the economy, entered very early in the spirit of “anti-epidemic as anti-enemy”, proactively responding to the impact of the COVID-19 epidemic, storms and floods, to overcome problems and support the economy.
Operate monetary policy in an active, flexible and skillful manner, helping to maintain macro stability, controlling inflation and promoting economic growth. Credit growth is almost 11%.
“In particular, I thank you many times for reducing operating rates, from the beginning of the year until now, 3 times to reduce operating rates, about 1.5-2% / year, the deepest decrease in the region.” . Said the Prime Minister.
The Prime Minister also highly appreciated the efforts and initiative of the State Bank in coordinating ministries and branches to work with international partners to address big issues, not to have major impacts on Vietnam’s trade and investment systems, such as the multilateral assessment. the Asia Pacific Group Multilateral Review Team on Anti-Money Laundering (APG); prevention of money laundering, financing against terrorism in Vietnam; Assessments by the US Department of Finance and US Agencies for Vietnam …
However, the Prime Minister said that while the State Bank and credit institutions have made great efforts to reduce interest rates on loans, they have not yet met the expectations of businesses and individuals, especially for interest on old loans, medium and long-term interest rates. Many commercial banks have quite large profits, taking profits to the maximum.
Due to the influence of COVID-19, the risk of insolvency increases. Therefore, along with credit expansion to support economic recovery, the State Bank and lending institutions must have solutions to manage bad debts and limit recently-arisen bad debts.
There are still many shortcomings, weaknesses and mistakes of credit institutions that need to continue to be rectified and handled promptly, especially for compulsory buy-out banks, weak banks and the fund system. people’s credit.
Definitely not lacking credit capital for productive and commercial establishments
Banco del Estado has a specific strategy and plan to deal with the new situation in all fields, especially financial and banking. The Prime Minister, who knew all levels, branches and the entire banking sector in depth, was determined not to back down from difficulties, to take a strong step forward in a tight plan.
The State Bank needs to calculate how much credit growth there will be in 2021 to contribute to growth because for Vietnam, credit remains an important channel for development. It is necessary to focus on perfecting the monetary, credit and banking institutions in accordance with the development requirements in the new stage.
Continue to actively and flexibly manage monetary policy tools, coordinating closely with fiscal and other policies to control inflation, stabilize the macroeconomy, and promote economic development. – society.
“Definitely the banking industry does not allow capital to be credited for productive and commercial establishments, especially in the fields of agriculture, rural areas and farmers, in the fields of export, high technology …”, saved the Prime Minister. Italy.
The bank not only grants loans but also provides practical support, helping companies to have an effective and sustainable production plan, both beneficial for the bank and for companies, and at the same time, it is necessary to continue to verify strictly control risks .
The Prime Minister expressed his hope that, in this difficult context, the banking sector would not aim to make a profit, but would continue to share with investors, companies and individuals to support the development of production.
The question the Prime Minister posed to the bankers was “how do you share with the people this year, how do you lower interest rates, how to lend to other people, not how much profit.” “.
It is necessary to continue promoting the restructuring of credit institutions, handling bad debts from weak banks. This is a key task in the coming times. The Prime Minister raised the problem and requirements for banks that reduce the rise in bad debts, successfully handle outstanding bad debts and ensure that the system of credit institutions and each institution is developed in a stable manner. sustainable, in which the goal is to have a number of commercial banks at the top of the largest, best quality and most effective banks in the region.
Ms. Nguyen Thi Hong, Governor of the State Bank – Photo: QUANG HIIEU
Reporting at the conference, Ms Nguyen Thi Hong, Governor of the State Bank, said that in 2020, the banking industry determines that the key task is to eliminate difficulties for the production and business activities of enterprises, people. population affected by the COVID-19 pandemic.
On the basis of analyzing and evaluating the impact of epidemics and natural disasters on productive and commercial activities, Banco del Estado has asked commercial banks to focus on solving credit difficulties, exempting and reducing interest and commissions paid to the customers. These are practical solutions, at the right time when production and business activities stagnate, revenues decline …
Specifically on the management of interest rates, reported at the conference, Lieutenant Governor Dao Minh Tu said that from the beginning of 2020 until now, the State Bank of Vietnam has reduced interest rates three times synchronously with a total of 1., 5-2.0% / year. The State Bank is one of the central banks with the largest cuts in executive interest rates in the region. At the same time, the deposit interest rate ceiling decreased between 0.6% and 1.0% annually; The maximum lending rate for priority sectors also decreased by 1.5% per year compared to the end of 2019.
As a result, as of November, the average lending rate decreased by 1% per annum on average compared to the end of 2019. The maximum short-term lending rate in VND for some sectors and priority fields was 4.5 years.
To share the difficulties with clients affected by the COVID-19 epidemic, credit institutions have restructured payment terms for approximately 270,000 clients with outstanding loans of almost VND 355,000 million; exemption, reduction and reduction of interest rates for almost 590,000 clients with outstanding loans of more than 1 million trillion VND Especially, credit institutions have granted new loans of almost 2.3 million dong with preferential interest rates between 0.5 and 2.5% lower than before for more than 390,000 customers.
To continue supporting production and commercial activities, in 2021, the State Bank of Vietnam plans to increase credit by 12%, in line with economic developments and timely meeting the capital needs of companies and individuals. people.
