Sure, I can assist with that. ## Top Banker: Banks Have Shared a Great Deal with Businesses

At the Government’s press conference for August 2024, Deputy Governor Dao Minh Tu shared that, according to the latest statistics from the State Bank, credit debt increased by 7.75%. Thus, the target for the year is set at approximately 15%, with adjustments based on practical requirements by the year-end, currently standing at 7.75%.

In the initial months, credit growth was negative, even reaching -2% in the first quarter. However, from April onwards, credit growth turned positive and accelerated. Growth in July and August was particularly robust, outpacing the same period last year, which stood at 5.33%, eventually ending the year at the targeted figure of 13.71%.

“This year, with the prevailing pace and overall economic trends, especially compared to previous years, we’ve witnessed a significant improvement. The growth across all objectives is assessed as very positive, and we believe we can attain the 15% target,” asserted the Deputy Governor.

He emphasized that the 15% growth target is a guiding figure for governance and not an imposed number. The primary focus now is on how to concentrate on credit growth, which means expanding investments to contribute to economic growth. The State Bank has set forth aggressive tasks to boost credit growth right from the start of the year.

“The allocation and facilitation for all credit institutions were completed by the end of 2023, with a 15% target allocated to all banks to proactively manage credit distribution,” Mr. Dao Minh Tu stressed.

Additionally, the State Bank has implemented measures to gradually lower interest rates. According to current data, interest rates have declined considerably. The current average lending rate for new loans is 6.23%, a reduction of 0.86% compared to the end of 2023. The deposit rate is 3.84%, an increase of 0.23%, observed in a few small commercial banks.

“While deposit rates have risen, lending rates have decreased, indicating that commercial banks have significantly supported businesses. Even though deposits must increase to offer higher interest rates to depositors, lending rates have fallen, narrowing the spread between deposits and loans,” the Deputy Governor emphasized.

According to Deputy Governor Dao Minh Tu, commercial banks have significantly supported businesses.

Mr. Tu also mentioned the stable exchange rate, with the currency’s depreciation thus far being only 1.5%, significantly lower than in other countries. The State Bank will continue to maintain a stable, reasonable exchange rate to attract foreign investment.

According to Deputy Governor Dao Minh Tu, liquidity for the economy and credit institutions has decreased simultaneously. This indicates that the lending capacity of commercial banks, including credit room, liquidity, and capital sources, is sufficient to meet credit demand. The critical aspect now is enhancing the absorption of credit demand, boosting borrowing demand, and improving businesses’ capacity to absorb capital through various macroeconomic policies.

Following the enactment of the new Law on Credit Institutions, the State Bank has significantly streamlined procedures and conditions for commercial banks to have a legal basis to promote lending. Additionally, the application of technology in credit activities has facilitated both borrowers and lenders.

Regarding large credit packages, the Deputy Governor shared that the credit package for seafood exports has disbursed beyond the expected figure of VND 30,000 billion, reaching VND 36,000 billion. The Prime Minister has provided general guidance, and the State Bank will continue to increase the balance of this package, projected at around VND 50,000 – 60,000 billion.

“With the current credit debt figure and the industry’s policies, along with the resolute direction of the Government, Prime Minister, and the synchronization of monetary and fiscal policies, we are confident that credit growth by the year-end will contribute to achieving the economic growth target of 6.5 to 7%,” affirmed the Deputy Governor.