Speaking at the conference on implementing banking tasks in 2024 on January 8, State Bank Governor Nguyen Thi Hong said that 2023 has faced many difficulties and challenges in the Government's management of macroeconomic and monetary policies.
Specifically, world inflation has decreased but remains high, causing many central banks around the world to continue tightening monetary policy; the USD, oil and gold prices have fluctuated; several banks in the US and Europe have collapsed; etc.
Domestically, the real estate and corporate bond markets have improved but there are still many difficulties and problems. Or the aftermath of the mass withdrawal incident at SCB at the end of 2022 has greatly affected liquidity and market sentiment, making banks more cautious in managing and balancing credit sources.
State Bank Governor Nguyen Thi Hong speaks at the conference on implementing banking tasks in 2024 on January 8 (Photo: SBV).
However, Ms. Hong said that the banking industry has achieved its set targets and objectives. These include contributing to controlling inflation and stabilizing the macro-economy; the foreign exchange market is basically stable; interest rates have decreased, bringing interest rates back to pre-Covid-19 levels.
"VND is one of the stable currencies in the region and the world. In 2023, VND will depreciate by about 2.9%; banking operations are safe, and digital transformation contents meet the targets set out in the banking sector's digital transformation plan," the Governor stated in his speech.
A representative of the State Bank said that this year the global economic outlook and international markets continue to be complicated. Domestically, the economy is expected to still face many difficulties and challenges.
In that context, monetary authorities focus on closely monitoring developments and the world and domestic economic situation to proactively, flexibly and synchronously manage monetary policy tools, and closely and harmoniously coordinate with other macroeconomic policies to support economic growth associated with inflation control, contributing to stabilizing the macro economy, the money and foreign exchange markets and the banking system.
At the same time, the State Bank regulates interest rates in accordance with market developments, macroeconomics, and inflation; encourages banks to reduce costs, simplify credit granting procedures, increase the application of technology and digital transformation in the credit granting process, etc.
The credit growth target for 2024 is about 15% and the State Bank continues to direct credit institutions to direct credit to production and business sectors, priority sectors and growth drivers (investment, consumption, export) according to the Government's policy; strictly control credit to potentially risky sectors.
At the same time, this unit continues to implement the Project to restructure the system of credit institutions associated with bad debt settlement in the period of 2021-2025; effectively implement the plan to handle weak credit institutions.
The operator strives to have a bad debt ratio of less than 3% in 2024. At the same time, the unit will continue to promote digital transformation in banking activities, enhance security and safety in payment activities and digital transformation.
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