Interest rate management in accordance with market developments

DNVN - The State Bank will regulate interest rates in accordance with market and macroeconomic developments; review, evaluate and propose the Government to consider extending the implementation period of Circular 02/2022/TT-NHNN dated December 30, 2022 on restructuring debt repayment terms and maintaining debt groups in the coming time.

At a press conference to announce the banking performance in the first quarter of 2024 on the morning of April 19, a representative of the State Bank of Vietnam (SBV) said that in the first quarter of 2024, the SBV will continue to operate monetary policy proactively and flexibly. Closely coordinate with fiscal policy and other macroeconomic policies to control inflation and support economic growth recovery.

Regarding interest rate management, the State Bank of Vietnam will continue to maintain the operating interest rates after 4 downward adjustments in 2023 in the context of high global interest rates. This will create conditions for credit institutions (CIs) to access capital from the State Bank of Vietnam at low costs.

Continue to encourage credit institutions to reduce costs to reduce lending interest rates to support the economy. Deposit and new lending interest rates of commercial banks will decrease compared to the end of 2023.

At the press conference, the representative said that the State Bank will manage interest rates in accordance with market developments, macroeconomics, inflation and monetary policy targets.

Emphasizing the direction of monetary policy management in the coming time, the representative of the State Bank said that the State Bank will manage interest rates in accordance with market developments, macroeconomics, inflation and monetary policy targets. Flexible exchange rate management to stabilize the foreign exchange market contributes to stabilizing the macro economy. Proactively manage credit growth to contribute to controlling inflation, stabilizing the macro economy, supporting economic growth and ensuring system safety.

In particular, the SBV continues to review and complete a number of legal documents related to credit granting activities in accordance with the Law on Credit Institutions 2024. Review, evaluate and propose to the Government to consider extending the implementation period of Circular 02/2022/TT-NHNN dated December 30, 2022 on restructuring debt repayment terms and maintaining debt groups.

Continue to coordinate with relevant ministries and branches to synchronously and effectively implement digital transformation solutions. Promote and facilitate banks and organizations to provide safe, secure and convenient payment products and services.

At the same time, implement assigned tasks related to the Project on restructuring the system of credit institutions associated with bad debt settlement in the period of 2021-2025 according to Decision No. 689/QD-TTg. Monitor and supervise the bad debt situation of the credit institution system.

Ha Anh

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