Monetary policy towards big goals
The State Bank has just released information about Directive 01 issued by the Governor to ensure safe and effective banking operations in 2016. Major targets on interest rates, credit growth of 16-18%, and handling bad debt to below 3% were simultaneously set by the industry.
Credit 2016: increase 18-20%
Accordingly, the Governor of the State Bank of Vietnam requested that units under the State Bank of Vietnam and credit institutions and foreign bank branches (FCVs) effectively implement solutions for monetary policy management and banking operations in 2016 with the aim of controlling inflation, stabilizing the macro-economy, and supporting economic growth at a reasonable level. Specifically.
The banking system implements a proactive and flexible monetary policy, closely coordinating with fiscal policy and other macroeconomic policies to control inflation according to the set target (below 5%), stabilize the macro economy, contribute to supporting economic growth at a reasonable level (about 6.7%), ensure liquidity of credit institutions and the economy, maintain stability of the monetary market. In 2016, the orientation is to increase total means of payment by about 16-18%, outstanding credit by about 18-20%, with appropriate adjustments according to the actual situation. Organize the implementation of monetary and banking solutions to continue to create favorable conditions for enterprises, cooperatives and households to access credit capital to promote effective production and business, create conditions for credit institutions to expand credit in parallel with safety and credit quality, ensuring capital supply for the economy.
At the same time, agencies and units synchronously deploy solutions to improve institutions, strengthen inspection and supervision to ensure that the system of credit institutions operates safely and in accordance with the law. Continue to promote comprehensive restructuring of credit institutions; focus on thoroughly handling weak credit institutions. Continue to drastically implement measures to handle bad debts and improve credit quality, striving to sustainably maintain the bad debt ratio at below 3% of total outstanding debt according to Vietnam's debt classification standards. Develop and implement measures to control credit growth according to the 2016 target of about 18-20%, associated with the implementation of industry and sector credit policies.
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Close monitoring of interest rates, exchange rates, gold
Strictly implement the regulations and instructions of the State Bank on interest rates; apply reasonable lending interest rates based on mobilization interest rates and the risk level of the loan, share difficulties with borrowers, and ensure financial safety in the operations of credit institutions. Do not collect fees related to loans, except for some fees according to the State Bank's regulations on lending fees of credit institutions to customers. Regularly and closely monitor the implementation of the State Bank's regulations on mobilization and lending interest rates, promptly detect violations to take appropriate handling measures based on clearly defining the responsibilities of organizations and individuals. Credit institutions violating regulations on interest rates will be handled according to the provisions of law.
Strictly comply with the regulations of the State Bank and other provisions of law on foreign currency trading, exchange rate posting and transactions on the foreign currency market, foreign exchange management; properly implement the regulations of the State Bank and other provisions of law on gold trading activities.
Focus resources and measures to handle bad debt, control the increase of bad debt, especially using risk provisions, handling secured assets, selling bad debt to the Asset Management Company of credit institutions to strive to sustainably maintain the bad debt ratio of the whole system below 3%.
Follow international developments
The State Bank also emphasized that it will closely monitor developments in the international financial and monetary markets to proactively take appropriate measures to minimize the negative impacts of international economic integration and stabilize the foreign exchange market. Synchronously deploy solutions to effectively manage the foreign exchange market, limit dollarization in the economy, attract foreign capital flows and domestic foreign currency sources to improve the State's foreign exchange reserves in accordance with actual conditions.
Continue to manage the gold market according to the provisions of Decree No. 24/2012/ND-CP of the Government on the management of gold trading activities. Ensure unified, synchronous and strict management of the gold market in the direction of increasingly narrowing the gold bullion market, continuing to prevent and push back the goldization in the economy; create conditions for the development of the gold jewelry and fine art market in a healthy manner to serve domestic and export needs.
According to the State Bank, in 2016, the sector will also strengthen inspection, examination and supervision of the currency market and banking activities. Through inspection, examination and supervision, risks and violations of regulations on safety of banking activities and other regulations of the law on currency and banking will be promptly handled; at the same time, it will detect and recommend competent authorities to rectify, amend, supplement and perfect the mechanisms and policies of the State and the banking sector.
Continue to resolutely implement solutions to restructure credit institutions according to the goals and orientations for the development of the credit institution system until 2020. Resolutely and decisively handle weak credit institutions, especially focusing on researching and proposing management and supervision measures and support mechanisms for restructuring commercial banks acquired by the State Bank. Resolutely and synchronously implement the solutions stated in the Project on handling bad debts of the credit institution system to sustainably maintain the bad debt ratio below 3%; combine bad debt handling with implementing measures to prevent and limit new bad debts and improve the credit quality of credit institutions.
According to Tien Phong
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