In the first six months of the year, the State Bank has reduced interest rates four times.

The State Bank has continuously reduced interest rates four times with a reduction of 0.5-2.0%/year, creating conditions for credit institutions to access capital sources at lower costs.

On the morning of July 15, the State Bank held a conference to review banking activities in the first 6 months of the year and deploy tasks for the last 6 months of 2023. Prime Minister Pham Minh Chinh attended and directed the conference.

State Bank Governor Nguyen Thi Hong shared that, in the context of many difficulties and challenges both domestically and internationally, in the first half of 2023, the State Bank has proactively and promptly adjusted policies, issued and implemented synchronously and optimally tools and solutions to control inflation at a low level, reduce interest rates and create favorable conditions for people and businesses to access credit capital, contributing to removing difficulties for production and business, supporting economic growth recovery and ensuring the safe development of the credit institution system.

The Prime Minister and leaders of the State Bank attended the conference to review banking activities in the first 6 months of the year and deploy tasks for the last 6 months of 2023. (Source: VGP)

In addition, the restructuring of credit institutions associated with bad debt handling, especially weak banks, continues to be vigorously implemented. The promotion of digital services to diversify products and services provided to businesses and people is also focused on.

Accordingly, regarding interest rate management, in the first 6 months of the year, the State Bank has continuously reduced interest rates 4 times with a reduction of 0.5-2.0%/year, creating conditions for credit institutions to access capital from the State Bank at lower costs, thereby creating conditions to reduce lending interest rates to support customers to overcome difficulties, restore production and business and continue to orientate to reduce market interest rates.

By the end of June 2023, the average deposit and lending interest rates of new transactions in VND of commercial banks will decrease by about 1.0%/year compared to the end of 2022. With the impact of policy lag, it is expected that the lending interest rate level for the economy will continue to decrease in the coming time.

The State Bank's leaders also said that they will continue to flexibly manage exchange rates, closely and synchronously coordinate with other policy tools as well as foreign exchange management measures to stabilize the foreign exchange market, consolidate the position of VND, contribute to controlling inflation and stabilizing the macro-economy.

Regarding credit management, according to Deputy Governor of the State Bank Dao Minh Tu, the industry has continued to manage appropriate credit solutions, ensuring capital supply for the economy but not being subjective about inflation risks.

However, Deputy Governor Dao Minh Tu also admitted that banking activities still face difficulties due to both subjective and objective reasons such as increasing bad debt and low credit growth. Difficulties in the corporate bond and real estate markets have not been fundamentally resolved, causing capital sources for growth to be concentrated on bank credit, and the high Credit/GDP ratio poses potential financial and monetary risks.

In the last 6 months of 2023, the State Bank's leaders said that they will closely follow developments in the domestic and international macroeconomics, financial and monetary markets to continue to operate monetary policy and banking activities firmly, proactively, flexibly, promptly, effectively, and in harmonious, reasonable, and close coordination with fiscal policy and other macroeconomic policies.

Deputy Governor Dao Minh Tu emphasized that the State Bank will manage the growth in credit volume and structure reasonably, meeting the credit capital demand of the economy in order to contribute to controlling inflation and supporting economic growth. In particular, the State Bank will continue to direct credit institutions to increase credit growth throughout the year at a reasonable rate; direct credit capital to production and business sectors, priority sectors and growth drivers of the economy according to the Government's policy; strictly control credit in sectors with potential risks; create favorable conditions for businesses and people to access bank credit capital.

In addition, the State Bank continues to direct commercial banks to deploy a credit package of VND 120,000 billion from capital sources of commercial banks in accordance with the Government's direction. Accelerate the implementation of the tasks of the banking sector in the Socio-Economic Recovery and Development Program and National Target Programs. At the same time, continue to review and research solutions to support people and businesses in a number of sectors and fields according to the direction of the Government and the Prime Minister...

Source: https://baoquocte.vn/sau-thang-dau-nam-ngan-hang-nha-nuoc-da-giam-4-lan-cac-muc-lai-suat-234723.html