SBV Governor asked credit institutions to cut costs to lower interest rates

On July 27, 1977, the Governor of the State Bank of Vietnam (SBV) Le Minh Hung had a meeting with credit institutions in some central provinces to listen to the banks report on the operation, To implement the policies of the Government, the State Bank related to the implementation of interest rate policy, credit, bad debt handling.

The governor emphasized: "The SBV branch and the commercial bank branches are particularly frank with regard to the proposed petition because there are many SBV departments and departments, and the leaders of the commercial banks are meeting here. Let us find solutions to remove the implementation of the direction of the Government, the SBV to meet the requirements of economic development of the locality.

Interest rates fall, credit growth is reasonable, directed to production
The majority of credit institutions in the area said that in the first 6 months of the year, the management of monetary policy and banking activities achieved important success is to stabilize the market confidence, Managing monetary policy such as stabilizing exchange rates, interest rates, rational credit growth, directing credit flows to production and priority sectors of the Government, contributing to macroeconomic stability. This is an important foundation for the development of credit institutions in the area stable and safe.

Regarding the concrete results, the Bank for Agriculture and Rural Development, the Bank for Investment and Development of Vietnam, the Industrial and Commercial Bank of Vietnam, the Sacombank Commercial Joint Stock Bank and the VP Bank, Short-term loans are commonly lowered at 6-9% per annum, with interest rates of 6-6.5% per annum for the preferred sector and 6.8-9% / Year, good customer interest rate from 4-5% / year.

Credit growth in the area is lower than the national average, but credit flows focus on production and priority areas of the Government, especially some banks have implemented some credit programs. Her assistance was also affected by the marine environment and loans under Decree 67. Regarding the restructuring and handling of bad debts, credit institutions in the locality are actively taking active part in implementing the restructuring plan. It was approved by the Prime Minister and the Resolution on Bad Debts was approved by the National Assembly in accordance with the guidance of the SBV.

The difficulties and obstacles of credit institutions in the proposed area focus on a number of issues such as: finding good customers for lending is also a problem for local credit institutions though Credit institutions have the policy of actively seeking customers; Mortgage loans are also problematic due to regulations on keeping documents or more specific instructions to implement Resolution on dealing with bad debt.

Reduce costs, improve operational quality to reduce interest rates
This is one of the directions of the governor for credit institutions in general and credit institutions in particular.

SBV governor Le Minh Hung said that in the first half of this year, the banking sector made positive contributions to the local economy. Thanks to the Government's steadfast guidance in macroeconomic stability and inflation control, the banking system has developed safe and healthy and the healthy and safe development of the banking system. Contributing to macro stability. Governor stressed some important results in the banking sector gained in the first 6 months as contributing to curb inflation and stabilize macro-economy; Although there are many pressures on interest rates, the lending interest rates, priority areas, terms have fallen to support the 6.7% growth target; Credit growth in the first 6 months of 2009 was more than 9% without any acceleration in the last months of the year, credit flow to manufacturing, Priority areas and risk are controlled; Foreign currency market and exchange rate stability, leading the market; Restructuring and dealing with bad debts are being implemented drastically with the aim of developing a safe and healthy system.

After answering the recommendations and proposals of credit institutions in the area, the Governor of the State Bank Le Minh Hung directed as follows:

On monetary policy management: Continue to consistently direct the Government and the Prime Minister in coordinating fiscal and monetary policy to stabilize the macro in order to control inflation. Banks in the area should implement monetary policy and banking activities to contribute to achieving basic inflation target of 1.8-1.9%; To have a balance in other areas to control inflation below 4% in 2017.

For interest rates: Governor directs the entire system to reduce costs, improve operational efficiency to reduce interest rates. The banking system has a basis to reduce lending rates as the government continues to stabilize macroeconomic stability. The SBV reduced the benchmark interest rates on both the open market and refinanced funds to support banks to continue lending at lower interest rates.

Regarding credit, the State Bank has consistently and consistently requested the commercial banks to focus on putting credit into the priority sector of the Government, controlling credit in the risk field, increasing Credit growth is about 18%. However, the State Bank of Vietnam is not rigid but flexible to manage and direct the management of the Government and the Prime Minister to put more credit into production and business. The commercial banks in the area should coordinate with functional agencies to strengthen the program to connect banks with businesses, to push capital into the economy. At the same time, banks must be politically accountable for the implementation of Decree 55 and Decree 67 of the Government to share difficulties with relatives, not to trouble people in accessing capital.

Regarding the restructuring and handling of bad debts: To request the commercial banks in the locality to drastically implement the scheme on restructure of credit institutions approved by the Government and the Resolution on dealing with bad debts, Assembly passed. Credit institutions follow closely the Directive of the Prime Minister, the action programs of the banking sector, the direction of the Governor of the State Bank for effective and effective implementation. In the spirit of straightforwardness we recognize the shortcomings and limitations such as inadequate legal basis, poor supervision and supervision capacity, weak management capacity of some banks, The staff does not meet the ethical standards of the industry ... We need to see and take measures to improve the quality of operations of credit institutions such as transparency information, improve the quality of operations into Traction monitoring, executive management, Information technology system, standards, regulations, staff morality standards. At the same time, organizations are required to draw up the restructuring plan of the credit institution itself to submit to the State Bank. The implementation of restructuring and handling of bad debts to ensure discipline, publicity, transparency and strictly handle violations.

According to Le Thi Thu Sen

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