On February 8, 2022 (the eighth day of the first lunar month), H.E. Pham Minh Chinh, Prime Minister and Member of the Politburo, and H.E. Le Minh Khai, Deputy Prime Minister and Secretary of the Central Committee of the Communist Party of Vietnam (CPV), visited and had a working session with the State Bank of Vietnam (SBV).
Prime Minister assigns tasks to the banking sector
Attending the meeting, there was Mrs. Nguyen Thi Hong, SBV Governor and Member of the Central Committee of the CPV; together with representatives from the Office of the Government, other members of the SBV Management Board, leaders of the SBV Departments and entities, and representatives of the commercial banks operating in Hanoi, etc.
Continuing to maintain the macro-economic stability, controlling the inflation and stabilizing the money market
Speaking at the meeting, Prime Minister Pham Minh Chinh spoke highly of the achievements made by the whole banking industry in 2021, contributing to maintaining the stability of the macro-economy, the money and the forex markets, ensuring continuous production and business operations, as well as the consumption of enterprises and the people, helping to promote the development of the country.
The banking sector had conducted multiple policies to support the people and enterprises to recover and develop their production and business operations; promulgated several policies on debt rescheduling, banking fee reduction and exemption. About 600,000 customers had benefited from the debt rescheduling, with the loan outstanding of over VND 280,000 billion; nearly two million customers had benefited from the lending interest rate reduction and exemption, with the loan outstanding of nearly VND 4,000 trillion; 1.2 million customers had been provided with new loans with lower interest rates than the pre-pandemic time, with the total loan amount of over VND 7,000 trillion. Additionally, the SBV had refinanced several commercial banks in order to allow them to provide loans to Vietnam Airlines Corporation (VNA) according to the direction of the National Assembly and the Government. The banking industry had also continued to improve the legal frameworks and administrative reform; promoted cashless payment and the digital transformation. The restructuring of the system of credit institutions in association with NPL resolution had continued to be strongly and effectively implemented.
Prime Minister Pham Minh Chinh and Deputy Prime Minister Le Minh Khai visit the Hall of History of Vietnam banking sector
Over the past time, the SBV has proactively developed and implemented appropriate and effective communication plans, contributing to the information transparency, maintaining the macro-economic stability and controlling the inflation, guiding the people in using banking products and services, increasing the understanding among the public, and improving the people's confidence in the banking products and services.
About the key tasks in 2022 and the following years, the Prime Minister requested the SBV to focus on the following:
First, the SBV and the whole banking sector must follow closely the directions and policies of the Party and the State, coordinate with the ministries, state agencies and local authorities to implement successfully the tasks and measures for disease response in accordance with Decree No.128, and for the socio-economic development in line with Decree 01 and Decree 02 of the Government.
Second, the banking industry must further contribute significantly to the maintenance of the macro-economic stability, controlling the inflation, stabilizing the money and forex markets, ensuring the smooth operations of the enterprises and the people, with special emphasis on supporting effectively the socio-economic recovery and development program, creating favorable conditions for the enterprises and the people to access bank loans for their production and business recovery and development.
Third, continuing to effectively conduct the mechanisms, monetary and credit policies, contributing to supporting, resolving difficulties for the enterprises and the people, promoting the economic recovery and the production and business development.
Fourth, implementing strongly and effectively the restructuring of the system of credit institutions in association with NPL resolution.
Fifth, continuing to take a stronger and more proactive lead in the digital transformation.
Sixth, continuing to improve the leadership capabilities and the quality of the banking officials and public employees.
Seventh, coordinating with other ministries and the state agencies to address all emerging issues relating to trade, monetary and investment relationship with other countries.
Eighth, the communication work, which had been implemented quite well so far, should be further improved, ensuring timely and accurate information, in order for the people to know, the people to understand, the people to believe, the people to follow, and the people to do.
Regarding proposals and recommendations of the banking industry, the Prime Minister assigned the relevant agencies to take actions within their authority; in case any action goes beyond an agency's authority, it must be reported to the relevant authorities for consideration and actions.
SBV Governor Nguyen Thi Hong speaks at the meeting
The banking industry is determined to accomplish the assigned tasks
On behalf of all officials and employees of the banking sector, Governor Nguyen Thi Hong expressed the honor to welcome Prime Minister Pham Minh Chinh and Deputy Prime Minister Le Minh Khai to visit and assign tasks to the banking industry. Governor Nguyen Thi Hong expressed the industry's determination to further promote the spirit of solidarity, creativity, and to drastically implement the tasks right from the beginning of the new lunar year with the highest sense of responsibility, promoting the positive results achieved so far, determining to overcome the obstacles and limitations, resolving all difficulties and challenges, striving to fulfill the assigned tasks, achieving higher progress and better results from the banking operations in 2022, with a view to contributing to the successful implementation of the socio-economic development targets of the country.
Overview of the meeting
Governor Nguyen Thi Hong also requested the leaders of the SBV entities to assume highest responsibility and leadership roles in implementing the assigned tasks, following closely the economic developments in the domestic and international markets in order to proactively advise the SBV's Board of Management and propose measures for the banking administration and management in a timely manner.
The SBV Governor further requested the Chairpersons of the Boards of Directors and the Board of Members, the General Directors and CEOs of the credit institutions to direct the performance of their institutions in compliance with the directions and policies, and the provisions of the law, ensuring safe and sound operations.
The SBV Governor went on to request that all units and individuals in the banking system, regardless of their positions and functions, to put their best efforts into performing the tasks successfully, making significant contributions to the socio-economic development of the country.
The banking industry contributing to the overall achievements of the country
Earlier at the same meeting, SBV Deputy Governor Dao Minh Tu presented a brief report on the performance results of the banking industry in 2021 and the orientations for 2022.
Deputy Governor Dao Minh Tu reports on the performance results of the banking industry
With the great efforts to overcome the difficulties, the banking industry had made important contributions to the overall achievements of the economy, which was reflected through a number of outstanding results from the proactive and flexible management of the monetary policy, contributing to controlling the inflation at a low level; concentrating capital sources into supporting the economic growth recovery; maintaining the stability and smooth operations of the money market; significantly cutting down the lending interest rates; continuing to increase the State foreign exchange reserves; the exchange rate and the forex market had continued to remain stable even in the context of strong fluctuations in the international market.
Entering 2022, on the basis of closely following Resolution 01 of the Government and the directions of the Prime Minister, the banking industry has proactively and strongly implemented the key tasks right from the beginning of the year. As of January 28, 2022, the credit outstanding increased by about 2.74% as compared to the end of the previous year (up by 16.32% as compared to the same period of the previous year; the growth in January 2021 was only at 0.53%). This reflects a smoother capital flow and the strongly positive recovery capabilities of the enterprises and the people.
Also at the meeting, representatives of several commercial banks presented to the Prime Minister their reports on the 2021 business performance results and the orientations for 2022. In addition, the representatives also recommended several measures and possible solutions to the Government and the SBV for the management and administration of the monetary and banking operations in order to help remove the current difficulties and obstacles faced by the credit institutions, and to promote business and production, contributing to the overall achievements of the country.
Le Hang