Hanoi (VNS / VNA) – The entire banking sector must implement effective monetary and credit policies to contribute to the development of production and business and support the recovery of the economy, said Deputy Premier Le Minh Khai.
At a banking industry conference in Hanoi earlier this week, Khai said the
State Bank of Vietnam (SBV) should further reduce loan interest rates, especially for priority industries and sectors, in addition to improving credit quality and boosting lending to production, businesses and infrastructure projects .
It is also necessary to promote the development of consumer credit to help reduce loan sharks and crimes on loan applications, he said.
In addition, the SBV should tightly direct banks to have plans and solutions to manage and keep under control their bad debt rates in the banking system, which will help ensure that the banking system operates in a safe, sound and sustainable manner. , noted Khai.
According to SBV vice-governor Dao Minh Tu, the spread of the Omicron variant has made it difficult to forecast the global economic outlook and inflation in 2022, posing many challenges for the Vietnamese banking sector.
Therefore, he predicted, SBV’s monetary policy management next year will be heavily influenced by inflationary pressures, especially against the backdrop of accommodative monetary policy in recent years.
banking industry Next year will also experience a greater impact on the growing risks of debt collection. If we include debts whose repayment terms have been restructured or interest rates reduced in accordance with SBV Circular 01/2020 / TT-NHNN, the bad debt rate of the banking system is around 7 , 31% to date, Tu said.
He was also concerned if there was no timely and effective fiscal policy support, excessive credit size expansion and preferential interest rate programs may cause difficulties not only for the management of the monetary policy of the SBV, but also for the country’s strategy on improving the financial soundness of banks. .
The current policies of restructuring and postponing the debt payment deadline are a temporary and necessary solution in the short term, but extending the restructuring deadline will be risky for the banking system in the medium term, Tu explained, adding the warning. Implementing many credit packages with different prime interest rates will also distort the interest rate and credit markets.
As for increasing the capital of banks, Tu said that there is a need to increase the registered capital of state banks to help them have enough capital to implement the government’s many preferential credit programs. ; lend to large key national infrastructure projects in the areas of electricity, build-operate-transfer (BOT), transport, airports and seaports; or increase loans for priority areas of the Government such as agriculture and rural areas, import-export, small and medium enterprises.
During the conference, the chairman of the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) Phan Duc Tu also suggested that the relevant authorities create conditions for banks to increase their share capital and increase the capital adequacy ratio./.