On September 7, in Hanoi, Minister and Chairman of the Government Office Tran Van Son, Spokesperson of the Government, chaired the regular Government press conference for August 2024.
Permanent Vice Governor of the State Bank Dao Minh Tu
At the press conference, Permanent Vice Governor of the State Bank Dao Minh Tu informed that up to now, credit outstanding balance has grown by 7.15%, while the target set for this year is 15%.
According to the Vice Governor, credit growth will expand investment, thereby contributing to economic growth.
Therefore, the SBV is implementing many solutions, focusing on lowering lending interest rates. The average lending interest rate for new loans is currently 6.23%, down 0.86% compared to the end of 2023, while the deposit interest rate is 3.84%, up 0.23%, a very small increase.
“Deposit interest rates have increased, but lending interest rates have decreased, which shows that commercial banks have shared profits with businesses by accepting higher interest rates on deposits but lowering lending rates, narrowing the spread and likely reducing profits compared to previous years,” Vice Governor Dao Minh Tu assessed.
Along with that, the exchange rate has been kept stable. According to Governor Dao Minh Tu, this reflects a modest 1.5% depreciation of the currency, much lower than in other countries.
The leader of the SBV affirmed that it will continue to maintain a stable and reasonable exchange rate policy and continue to attract foreign investment.
The economy’s liquidity and that of credit institutions are abundant, meaning commercial banks currently have ample room for lending in terms of both credit growth limits and liquidity.
“After the new Law on Credit Institutions took effect, the SBV has removed or relaxed many procedures and conditions, providing commercial banks with legal grounds to boost lending,” said Mr. Tu.
The SBV is also promoting the application of technology in credit activities, creating favorable conditions for both borrowers and lenders, and channeling capital into key and prioritized sectors as directed by the Government and the Prime Minister.
In addition, the SBV will continue to increase the scale of preferential credit packages, such as the credit package for the forestry and seafood industries, expected to increase to VND 50,000 – 60,000 billion (instead of the initial VND 30,000 billion).
For the social housing credit package of VND 140,000 billion, the interest rate will be 3% lower than the average lending interest rate for medium and long-term loans of state-owned commercial banks in the market (instead of 2%).
“With the current credit outstanding balance, the SBV believes that the credit growth target of 15% will be achieved by the end of the year, contributing to the economic growth target of 6.5 – 7%,” emphasized Vice Governor of the SBV.
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