Controlling inflation is a top priority
On June 5, 2020, in Hanoi, the State Bank of Vietnam (SBV) held a press conference on banking operations in the first six months of 2020.
At the press conference, SBV Deputy Governor Nguyen Thi Hong said that in the monetary policy from now to the end of the year, inflation control is the top priority.
In particular, the focus will be on managing interest rates, exchange rates in line with macro balances, market movements; controlling credit scale with the orientation of improving quality, closely following developments of the Covid-19 pandemic to promptly meet the capital needs of the economy.
In addition, the SBV continues to direct credit institutions to implement solutions to resolve difficulties for customers affected by Covid-19 pandemic, such as debt restructuring, exemption or reduction of loan interest rates, etc.
The SBV assessed that, due to the impact of the Covid-19 pandemic, credit demand for the first six months of the year increased slowly. As of May 29, the credit increased by only 1.96% compared to the end of 2019, much lower than the 5.74% in the same period in 2019 and 6.16% in 2018.
Currently, credit institutions are still actively implementing credit programs to support people and businesses affected by Covid-19 pandemic with loan interest rates sharply reduced from 0.5% -2.5%; there are commercial banks that even reduce loan rates by 3%-4% per annum.
As of May 25, the entire banking system has restructured the repayment period for nearly 224,000 customers with outstanding loans of nearly VND 152,000 billion; exempted, reduced, lowered interest rates for more than 326,000 customers.
With the above results, the SBV believes that the current monetary management policy is promoting positive effects, on the one hand supporting economic recovery due to the impact of Covid-19 pandemic, on the other hand, helping to achieve macroeconomic stabilization and control inflation from now until the end of the year.
- The State Bank of Vietnam continued to reduce policy interest rates
- The State Bank and enterprises join hands to promote cashless payments
- Credit growth plummeted due to the impact of COVID-19 pandemic
- Controlling inflation is a top priority
- More positive forecasts about exchange rate stability in 2020
- SBV tightened information security in banking operations
- Helping businesses access capital more easily but not by lowering lending standards
- BVSC: Interest rates are likely to move sideways in the near term
- Digital banking and electronic payment are set to boom in the time of Covid-19
- Non-cash payments have recorded positive changes