On September 21, 2024, at the meeting between the Government’s Standing Committee with the joint stock commercial banks on possible solutions to boost the socio-economic development, Governor Nguyen Thi Hong of the State Bank of Vietnam (SBV) affirmed that the SBV always creates favorable conditions for the development of businesses in general, including joint stock commercial banks in particular.
At the meeting, after listening to the opinions of the joint stock commercial banks, the SBV Governor clarified a number of substances related to the SBV's mechanisms and policies to enable the development of businesses in general and the private joint stock commercial banks in particular.
Governor Nguyen Thi Hong affirmed that private joint stock commercial banks are also businesses, and therefore they need a stable business environment. Over the past time, in the context of difficulties and challenges, the SBV, under the directions of the Government and the Prime Minister, has managed to control the inflation, maintain the macro-economic stability, focusing specially on maintaining the stability of the money and the forex markets to ensure a prudent banking system, and to maintain a stable business environment.
In addition, the SBV has also accelerated the administrative procedure reforms, and has been one of the top-ranking Ministries and agencies in the Public Administrative Reform Index (PAR index) for several consecutive years. This shows the SBV’s continuous efforts and determination in proactively and promptly issuing multiple mechanisms and policies to ensure safe and sound banking operations, as well as to create a stable, favorable, healthy and fair investment and business environment for all businesses in general and for joint stock commercial banks in particular.
With the role of a State management agency, the SBV has issued and submitted to the competent authorities for issuing several legal frameworks to create a complete and favorable legal corridor for the commercial banks, including private joint stock commercial banks, to develop in scale, quality, and to diversify their services, meeting the needs of all enterprises and people.
From the perspective of the State Bank, together with the commercial banks in the system, a lot of monetary and credit solutions have been implemented to achieve the goals of controlling the inflation and maintaining the macro-economic stability. Especially, when people and businesses are in difficulty, the banking system has upheld its sense of responsibility, and has reached a consensus to implement a lot of policies and solutions under the directions of the Government as well as the SBV, such as restructuring of the debt payment, maintenance of the debt groups, exemption and reduction of the lending interest rates, promotion of the credit growth, etc.
During the time of supporting people and businesses affected by the COVID pandemic, the entire banking system had utilized its own resources to reduce the banking interest rates and fees by an amount of VND 60 trillion.
Most recently, the entire banking sector had proactively participated in the disaster relief efforts, and had made a donation worth VND 40 billion to help those people affected by typhoon Yagi (Typhoon 3).
On September 20, 2024, the SBV also held a conference with the entire system connecting with 26 provinces and cities affected by typhoon Yagi to request all relevant stakeholders to implement the directions of the Government and the Prime Minister in Resolution No. 143/NQ-CP dated September 17, 2024 on the key tasks and solutions to urgently overcome the consequences of Typhoon 3 (typhoon Yagi), quickly stabilize the situations of the people, accelerate the recovery of production and business operations, actively promote the economic growth and control effectively the inflation.
Up to now, 32 out of 40 banks have registered new credit packages worth VND 405 trillion with 0.5-2.0% lower interest rates to provide credit to the businesses and people affected by typhoon Yagi.
The SBV Governor highly complimented the joint stock commercial banks for having accompanied the SBV in implementing the tasks of the banking sector. Photo: Duong Giang
The SBV Governor highly complimented the joint stock commercial banks for having accompanied the SBV in implementing the tasks of the banking sector, contributing to the socio-economic development, and ensuring a prudent banking system.
The Governor also thanked the joint stock commercial banks for sharing their opinions, many of which were similar to the SBV's. The SBV had also reported these opinions to the Government and the Prime Minister in the reports and at the conferences, such as the proposal to develop other segments of the financial market to reduce the dependence on medium and long-term capital provided by the banking system; strengthening the measures to guarantee loans for the businesses, especially small and medium-sized enterprises, etc.
Regarding the opinions of the joint stock commercial bank about green credit development, the SBV Governor shared that the SBV had issued a plan on green banking and another plan on green credit implementation. However, the SBV Governor said that the banks should prepare early solutions in order to help the enterprises meet strict criteria on the environment. About the recommendation for the development of a database on businesses, the Governor said it is extremely necessary, so that the banks could have a basis to determine their credit lending, reducing the need to rely on collaterals,…
Le Hang