At the press conference to inform about the banking performance in the third quarter of 2024 on October 17, Deputy Governor of the State Bank of Vietnam Dao Minh Tu said that the total mobilized capital of the whole industry as of September 30 reached 14.5 million billion VND, outstanding loans reached 14.7 million billion VND.

The Deputy Governor explained that the lending exceeded the mobilization because the excess part was the charter capital of commercial banks, and affirmed that "there is no story of 14-15 million billion VND remaining in the bank" because the amount mobilized by the banks has been lent to the economy.

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Deputy Governor Dao Minh Tu at the press conference. Photo: SBV

Credit growth in the agricultural and rural sector reached over 20%. Some sectors such as forestry, seafood exports, etc. disbursed over 40,000 billion, far exceeding the initial credit package of 15,000 billion. The Deputy Governor said he is preparing to submit a credit package of 60,000 billion VND for this sector.

Preferential loans for social housing of VND120,000 billion have been registered by banks up to VND140,000 billion. The term of this loan package will be extended to 10 years, instead of 5 years as before.

“This 140,000 billion package depends on the legality of the projects as well as the implementation of investors. As for the capital needs of businesses and people, the banking industry is always ready,” said the Deputy Governor.

After storm No. 3, many farming households lost everything. The State Bank of Vietnam requested banks to extend and defer debt for businesses and people facing difficulties due to the storm, while continuing to provide new loans and support interest rates for these groups.

In the near future, the State Bank will develop a method for setting aside risk reserves after storms. According to the new regulations of the Law on Credit Institutions, this is the authority of the Prime Minister, and the State Bank will submit the method of setting aside to the Prime Minister for approval.

The State Bank has also developed mechanisms and preferential policies for the 1 million hectare high-yield rice project in the Mekong Delta and will guide commercial banks to implement this program.

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Credit growth increased. Photo: Hoang Ha

In the third quarter, the State Bank continued to operate monetary policy flexibly, ensuring liquidity for the economy. Capital for the economy is always abundant, commercial banks have excess liquidity, the State Bank always ensures liquidity for the economy in general and commercial banks in particular.

Regarding the project to restructure credit institutions, most of them have completed the restructuring project. The Deputy Governor said that bad debt is on the rise, especially after storm No. 3. This is also a problem that the banking industry has to face and needs to have a solution in the near future.

This afternoon, the State Bank of Vietnam will hold a handover ceremony for two "zero dong" banks. Deputy Governor Dao Minh Tu said that the remaining "zero dong" bank out of three "zero dong" banks will continue to be handed over in the coming time. The State Bank of Vietnam is also closely controlling two weak banks, Dong A Bank and SCB.