Prime Minister asks banks not to delay providing credit capital

The Prime Minister requested the banking sector to continue reducing lending interest rates and increasing access to credit capital to support people and businesses in developing production and business.

The Prime Minister requested that there be no congestion or delay in providing credit capital. (Photo: PV/Vietnam+)

Prime Minister Pham Minh Chinh has just signed Official Dispatch No. 18/CD-TTg dated March 5, 2024 on credit growth management in 2024.

The dispatch stated that the State Bank of Vietnam shall preside over and coordinate with relevant agencies to urgently and comprehensively review the credit granting results of the credit institution system for the economy, each industry and each field.

According to the content of the Official Dispatch, 2024 is an acceleration year, of special importance in the successful implementation of the 5-year socio-economic development plan 2021-2025. The world and regional situation is forecast to continue to have complex and unpredictable developments; the consequences of the COVID-19 pandemic will have a long-term impact. Domestically, the economy has opportunities, advantages and difficulties, challenges intertwined but the difficulties and challenges are greater; inflationary pressure is still high; production and business activities in a number of industries and fields are still difficult; lending interest rates have decreased but not commensurate with the decrease in deposit interest rates; credit growth in the first two months of 2024 decreased compared to the end of 2023.

Therefore, the Prime Minister requested the State Bank of Vietnam to urgently and comprehensively review the credit granting results of the credit institution system for the economy, each industry and each field; the credit granting results of each credit institution and commercial bank up to the present time in order to, according to its authority and legal regulations, have measures to manage credit growth and interest rates in 2024 more effectively, feasiblely and promptly, ensuring adequate supply of credit capital to serve the economy and the safety of the credit institution system, absolutely not allowing congestion, delay or untimely.

In case of any matter beyond its authority, the State Bank shall promptly report and propose to the competent authority as prescribed; and shall be responsible to the Government and the Prime Minister for the management of monetary policy and credit growth.

The Prime Minister also requested the State Bank to closely monitor developments and the world and domestic economic situation to proactively, flexibly, promptly and effectively manage monetary policy; flexibly, harmoniously and reasonably manage interest rates and exchange rates in accordance with the market situation, macroeconomic developments and monetary policy objectives in accordance with the main tasks and solutions in Resolution No. 01/NQ-CP dated January 5, 2024 of the Government to prioritize promoting economic growth and removing difficulties for production and business.

In addition, the banking sector must effectively increase credit growth, meet foreign currency needs for production and business, associated with macroeconomic stability, inflation control, ensuring major balances of the economy, safety of banking operations and the system of credit institutions, ensuring the implementation of credit growth targets set for 2024.

In addition, the banking sector immediately implemented management solutions to continue reducing lending interest rates in conjunction with increasing access to credit capital to support people and businesses in developing production and business, ensuring adequate supply of credit capital and healthy foreign currency, with focus and key points, serving and meeting the capital needs of the economy and ensuring the safety of the credit institution system.

The State Bank needs to step up, strengthen inspection, examination, control and closely monitor the credit granting of credit institutions, ensuring that credit capital flows, including foreign currency credit capital, focus on priority and important areas, growth drivers of the economy (consumption, export, investment), serving the production and business development needs of enterprises and people, creating conditions for safe, healthy and sustainable production and business expansion but lacking capital.

Prime Minister asks banks not to delay providing credit capital

The Prime Minister requested the banking sector to immediately implement management solutions to continue reducing lending interest rates. (Photo: Vietnam+)

Commercial banks are strictly prohibited from granting credit in violation of legal regulations or to the wrong subjects; granting credit to the board of directors, executive board and related persons of credit institutions, enterprises in the ecosystem, backyard enterprises... with preferential interest rates while people and enterprises with legitimate and legal needs have difficulty accessing credit capital and foreign currency while implementing tools to control inflation and minimize and limit the increase of bad debt for credit institutions.

The Prime Minister also requested the State Bank of Vietnam to direct and request credit institutions to closely follow the instructions of the Government and the State Bank of Vietnam, and continue to reduce lending interest rates (cost reduction; simplify administrative procedures, enhance the application of information technology, digital transformation...).

In addition, commercial banks must publicly announce average lending interest rates so that people and businesses can easily access credit and choose banks to borrow capital.

Strong credit institutions effectively implement preferential credit packages suitable to the characteristics of each credit institution for important sectors and growth drivers of the economy according to the Government's policies; promote the pioneering and exemplary role of effective credit institutions and state credit institutions; enhance social responsibility and business ethics of credit institutions in sharing and supporting people and businesses.

The Prime Minister requested the State Bank to direct credit institutions to continue directing credit capital into production and business sectors, priority sectors and traditional growth drivers such as consumption, investment, export, Digital Transformation, climate change response, Green Transformation, circular economy, science and technology and innovation... of the economy according to the Government's policy; continue to strictly control credit into potentially risky sectors; ensure safe and effective credit activities./.

According to Vietnam+

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