What does the State Bank say about gold and credit?

Do not accept high SJC gold price

According to Mr. Dao Minh Tu, Decree 24/2012 on gold market management (Decree 24) was issued more than 10 years ago, with the main goal of preventing gold-ization and avoiding impacts on macro-economic management, especially on interest rates, prices, exchange rates, foreign currencies, etc. Decree 24 has fulfilled the expectations at that time, but now needs to be amended to suit the practical situation.

Mr. Tu explained that Decree 24 stipulates that the State Bank has a monopoly on gold bars, while gold jewelry and fine art belong to the market and are managed by competent authorities. Therefore, the State Bank will re-evaluate the current role of Decree 24 to see if it is still effective in carrying out its tasks and missions. "Many experts also say that it is time to review SJC gold bars, there may be other types of gold, other brands. But no matter what, the ultimate goal must be achieved to manage the gold market without affecting the macro economy . That is the right of 100 million people, while the right to trade gold is only for a small group," Mr. Tu affirmed.

Ngân hàng Nhà nước nói gì về vàng, tín dụng?- Ảnh 1. — The State Bank of Vietnam exchanged information on gold, credit, interest rates... on the morning of January 3.

According to Mr. Dao Minh Tu: The State does not encourage gold trading, especially gold bars, but always respects the people's right to store and trade gold bars. The State also does not protect prices for gold bar trading and does not accept the domestic price difference being 20 million VND/tael higher than the world price as recently; does not accept SJC gold being several million VND/tael higher than other gold. All of these existing problems will be resolved with the revised Decree 24 in the coming time. In January, the State Bank will submit the revised Decree 24 with determination and decisiveness in managing the gold market.

About 2 million billion VND of credit waiting to be released to the market

Regarding credit, Mr. Dao Minh Tu said that credit growth in 2023 will reach 13.5%, equivalent to 1.5 million billion VND, bringing the total outstanding credit balance to 13.6 million billion VND injected into the economy. In 2024, the State Bank will allocate the full credit growth limit to credit institutions with a growth rate of about 15%, equivalent to an additional 2 million billion VND. Even if economic indicators are well controlled, growth can reach 16%.

Mr. Dao Minh Tu explained: In previous years, credit limits were considered as grants, the allocation mechanism led to some banks increasing their allocated credit limits, but some banks did not use up their limits, and some even had negative credit growth. Banks with negative growth showed that they had not made any efforts, so the current credit policy has been changed so that banks can strive to implement the assigned credit limits. Capital injected into the economy this year must be stronger and more drastic. Any bank that has used up its allocated limit at the beginning of the year will receive more from the State Bank, not just until then, but on the condition that the economy allows credit expansion and ensures macroeconomic safety.

"Credit must go to the right subjects, not thrown all into the backyard, into the entire ecosystem without the economy being concerned. The State Bank will monitor the capital going to the subjects, demonstrating transparency and objectivity, without any mechanism of asking for or giving," Mr. Dao Minh Tu emphasized.

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