Banks strive to promote credit, support the economy

Conference on Promoting bank credit, contributing to economic growth and launching the State Bank of Vietnam in Region 5 (Thai Nguyen, Bac Ninh, Bac Giang, Cao Bang, Bac Kan and Lang Son) organized by the State Bank of Vietnam - Photo: VGP/HT

Credit drives regional economic growth

This is the opinion of Mr. Doan Thai Son, Deputy Governor of the State Bank of Vietnam at the Conference on Promoting bank credit, contributing to promoting economic growth and launching the State Bank of Vietnam in Region 5 (Thai Nguyen, Bac Ninh, Bac Giang, Cao Bang, Bac Kan and Lang Son) organized by the State Bank of Vietnam on the afternoon of March 18 in Thai Nguyen.

According to Deputy Governor Doan Thai Son: The State Bank of Vietnam (SBV) has implemented many synchronous solutions to facilitate people and businesses. First of all, the SBV has built a legal framework to promote credit granting via electronic means, small value loans, and also facilitated asset mechanisms in credit activities... Thanks to that, the cash flow in the economy is better circulated, especially giving priority to credit institutions that seriously implement support policies.

Mr. Doan Thai Son, Deputy Governor of the State Bank of Vietnam, speaking at the Conference - Photo: VGP/HT

At the same time, the SBV also promotes increasing access to credit, especially preferential loans for the agriculture, aquaculture, and social housing sectors. Not only that, the SBV also focuses on allocating capital to priority sectors to promote economic growth, while still strictly controlling credit to potentially risky sectors.

To achieve the credit growth target of 8% in 2025 as directed by the Government, the State Bank of Vietnam has set the annual credit target at 16%. Thus, to achieve a growth rate of 8-13%, the banking industry needs to boost credit more strongly than in 2024. As of the end of February 2025, credit growth in the region had reached 1.5%, higher than the national average (0.8%), and much higher than the negative 0.25% of the previous year. However, the growth rate is uneven among localities, such as Bac Giang reaching 5.67%, many times higher than the national average.

"Therefore, to achieve the growth target of over 8%, credit needs to be further boosted, at least higher than last year's level. This requires the synchronous participation of the banking system as well as the attention of local authorities," Deputy Governor Doan Thai Son emphasized.

Need for coordinated efforts for banks and businesses to work together

Mr. Le Quang Huy - Director of SBV Region 5 said: Despite achieving many positive results, SBV Region 5 still faces many difficulties in implementing credit policies. To overcome the difficulties, Director Le Quang Huy said: SBV Region 5 has been implementing specific solutions such as: Coordinating to direct banks to continue to lower lending interest rates, creating favorable conditions for businesses and people to access capital according to the direction of the Government and SBV; promoting digital transformation, increasing the application of financial technology (Fintech) in credit and payment activities; strengthening supervision of the banking system, closely coordinating with functional agencies to prevent black credit and illegal financial activities; expanding preferential credit programs, especially support packages for small enterprises and individual business households.

Ms. Nguyen Thi Vinh, Chairwoman of Thai Nguyen Provincial Women Entrepreneurs Association, Chairwoman of Thai Hung Company spoke at the Conference - Photo: VGP/HT

From the perspective of enterprises, Ms. Nguyen Thi Vinh, Chairwoman of the Thai Nguyen Provincial Women Entrepreneurs Association and Chairwoman of Thai Hung Company, expressed: Recently, Party and Government leaders have been promoting important reforms, opening a new era of development.

Representatives of the Thai Nguyen female business community made a number of recommendations to support businesses in the coming time, such as: adjusting and narrowing the interest rate gap between loans and deposits, while reducing the difference between buying and selling foreign currencies; continuing to strongly reform and cut administrative procedures, especially in credit approval.

"The close connection between businesses and banks will help both sides develop together, creating maximum conditions for the business community to reach new heights," said Ms. Nguyen Thi Vinh.

Agribank representative said: The bank has improved processes, simplified documents and credit granting procedures, increased the application of information technology, specified a suitable digital transformation plan at Agribank according to Resolution 57 of the Politburo, provided banking products and services on digital channels, reduced transaction and lending time, increased customer accessibility, especially in remote areas. Promoted the implementation of the Bank - Enterprise connection program to grasp the demand for loans and promptly handle and remove difficulties and obstacles for customers.

In the first 3 months of 2025, to effectively promote credit growth, Agribank continued to reduce the short-term lending interest rate floor by 0.2% - 0.5%, simultaneously implementing, from the beginning of the year, 09 preferential lending programs with a scale of over 350 trillion VND with lending interest rates 1% to 2% lower than Agribank's normal lending interest rate floor. Up to now, Agribank has 05 preferential lending programs for corporate customers, 6 programs for individuals.

Regarding lending interest rates, Ms. Mai Thi Trang - Deputy Director of the Monetary Policy Department of the State Bank of Vietnam said: The National Assembly and the Government have given strong instructions, requiring banks to implement policies to reduce interest rates. Specifically, the Government has issued Official Dispatch No. 19/CD-TTg on strengthening the implementation of solutions to reduce interest rates and Official Dispatch No. 22 on a number of key tasks and solutions to reduce administrative procedures, improve the business environment, and promote socio-economic development, which clearly specifies the tasks of key ministries and branches, including the State Bank of Vietnam.

Following the above policy, the State Bank has directed credit institutions to reduce interest rates.

Regarding exchange rates, in recent times, the State Bank has coordinated with the World Bank (WB) to implement appropriate management measures. Although USD interest rates have increased due to the policy of the US Federal Reserve (Fed), the State Bank has maintained stable exchange rates and is ready to intervene when the market fluctuates strongly.

Regarding credit limits, the State Bank has made important innovations in allocating credit room in 2024. In 2025, with a plan to increase by about VND 2.5 million billion, "there is room to expand lending".

"The State Bank must still ensure reasonable capital supply for the economy, aiming to gradually eliminate administrative measures that interfere with credit," Ms. Mai Thi Trang emphasized.

Regarding lending regulations, the leader of the Monetary Policy Department said: Directive 01 of the State Bank encourages credit institutions to be flexible in valuing collateral, reducing operating costs, and applying population databases in loan appraisal. The State Bank also promotes the electronicization of lending activities, creating more favorable conditions for businesses and people.

Concluding the conference, Deputy Governor of the State Bank of Vietnam Doan Thai Son noted: Credit is not "unlimited" but always has a certain ceiling, however, the banking system still has room to provide capital for the economy. First of all, banks need to ensure safe deposits from people to maintain lending activities.

Without close coordination from local authorities, the implementation of credit policies will face many obstacles, affecting economic growth efficiency.

The SBV's leaders noted: SBV Region 5 currently operates in 6 provinces with the task of advising and proposing policies to local Party committees and authorities. It is necessary to closely coordinate between the SBV and localities in monetary policy management.

Credit institutions need to pay attention to Directive 01 of the State Bank from the beginning of 2025, need to ensure the goal is not only credit growth but also ensure system safety, limit bad debt risks.

At the same time, the SBV leader requested that credit institutions continue to simplify lending procedures to increase businesses' access to capital. Banks need to implement measures to reduce operating costs, create conditions to reduce lending interest rates, and help businesses access capital more easily.

Regarding medium and long-term interest rates, the State Bank's leaders noted: Credit institutions need to fully comply with regulations in the process of adjusting interest rates during the loan period.

"Avoid applying preferential interest rates for a short period of time and then suddenly increasing them when the term expires, causing difficulties for businesses and people," said Deputy Governor Doan Thai Son.

Regarding the legal framework, Deputy Governor Doan Thai Son shared: The State Bank is finalizing two important documents to submit to the Government and the National Assembly to adjust credit policies to better suit actual needs.

One of the important contents is to increase the loan limit without collateral from 100 million to 300 million VND. The State Bank has completed the steps to submit to the Government. At the same time, the State Bank is also completing the draft to legalize Resolution 42 on bad debt settlement, expected to be submitted to the National Assembly for approval at the meeting next May. When approved, these policies will help businesses access capital more easily, while removing obstacles in bad debt settlement.

For cooperative enterprises and people, the State Bank encourages borrowers to have a better understanding of banking products and services to have an effective plan to access capital. More importantly, banks also need to proactively improve their products and services to suit actual needs, helping enterprises and banks to "meet" more effectively.

"In the context of economic recovery, the banking sector is always ready to deploy support solutions to remove difficulties for businesses. With the companionship of the banking system and support from local authorities, credit will continue to be promoted, contributing to stabilizing and developing the economy sustainably," Deputy Governor Doan Thai Son affirmed.

Huy Thang

Source: https://baochinhphu.vn/ngan-hang-no-luc-thuc-day-tin-dung-ho-tro-nen-kinh-te-102250318180757275.htm