Credit institutions are having favorable conditions to provide loans.

DNVN - Sharing at the press conference on the results of banking activities in the third quarter of 2024, Permanent Deputy Governor Dao Minh Tu said that up to now, the credit of the whole system has increased by about 9% compared to the end of 2023. With good liquidity and much room for credit growth, credit institutions currently have favorable conditions to provide loan capital.

According to Deputy Governor Dao Minh Tu, in the first 9 months of 2024 and the third quarter of 2024, the domestic and world economies will have both advantages and disadvantages. In the world, inflation in many countries continues to cool down although it is still unpredictable, reinforcing the trend of lowering interest rates of central banks. In particular, the US Federal Reserve Bank (FED)'s adjustment to lower interest rates has helped reduce the pressure on monetary policy management of many countries in the world, including Vietnam.

Domestically, although there are still many difficulties and challenges, especially the damage caused by storm No. 3 in the northern localities, with the drastic and close direction of the Government and the Prime Minister, economic growth in the first 9 months of 2024 maintained a positive trend, with each quarter higher than the previous quarter. Inflation was appropriately controlled and actively supported economic growth.

Permanent Deputy Governor Dao Minh Tu speaks at the press conference on information on banking performance in the third quarter of 2024.

For the banking sector, monetary policy has contributed to stabilizing the macro-economy, controlling inflation; supporting liquidity for credit institutions, and stabilizing the money and foreign exchange markets.

The State Bank of Vietnam (SBV) continues to maintain the operating interest rates to facilitate credit institutions to access capital from the SBV at low costs, contributing to supporting the economy. At the same time, it directs 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 for credit packages, programs, and products on the bank's website. As a result, interest rates continue to decrease compared to the end of 2023.

“To date, credit in the entire system has increased by about 9% compared to the end of 2023. With good liquidity and much room for credit growth, credit institutions currently have favorable conditions to provide loans to the economy,” Mr. Tu emphasized.

Regarding credit programs/packages, the Standing Deputy Governor said that the State Bank continues to direct credit institutions to promote the implementation of credit programs such as: the VND 120,000 billion program for loans for social housing, workers' housing, apartment renovation and reconstruction projects; credit programs for the forestry and fishery sectors... In particular, the banking sector urgently and promptly implements solutions to support and remove difficulties for customers affected by storm No. 3.

The stability and safety of the credit institution system continues to be maintained, and the legitimate rights of depositors are guaranteed. Bad debts are focused on being handled and controlled in the context of economic and business difficulties, affecting the ability of enterprises to repay debts. However, bad debts tend to increase, especially after the storm No. 3.

From now until the end of the year, the State Bank will continue to operate monetary and credit policies more openly to ensure capital to support the economy, thereby supporting economic growth.

At the same time, interest rates are managed in line with market developments, macroeconomics, inflation and monetary policy targets. Directing credit institutions to grow credit safely and effectively, directing credit to production and business sectors, priority sectors and growth drivers.

The State Bank of Vietnam continues to strictly control credit in areas with potential risks. Review and simplify procedures to facilitate businesses and people to access bank credit; expand credit to serve production and business, life and consumption, contributing to limiting "black credit".

Hoai Anh

Source: https://doanhnghiepvn.vn/kinh-te/tai-chinh-ngan-hang/cac-to-chuc-tin-dung-dang-co-dieu-kien-thuan-loi-cung-ung-von-vay/20241017040217903