The Prime Minister directed to continue reducing loan interest rates and removing difficulties for businesses.

That is the direction ofPrime Minister Pham Minh Chinhat the conference to review banking activities in the first 6 months of the year and deploy tasks for the last 6 months of 2023.

On behalf of the Government, the Prime Minister acknowledged and commended the efforts, high determination and encouraging initial results of the State Bank (SBV) and the banking sector in the first 6 months of 2023, making an important contribution to the overall results of the whole country. The Prime Minister stated that in that overall result, there was an important contribution from the SBV and the entire banking sector.

Besides the achieved results, the banking sector's operations still have limitations and shortcomings. Interest rates, especiallyloan interest ratesstill high. Credit growth is low, many businesses still have difficulty accessing new credit.

Bad debts continue to be handled but still pose many risks. Progress in handling weak credit institutions is still slow. The work of grasping and forecasting the situation is not accurate; the resolution of difficulties and problems of people and businesses is sometimes slow and untimely...

Regarding the main tasks and solutions for the last 6 months of 2023 and the coming time, the Prime Minister directed a number of key contents.

Specifically, the State Bank of Vietnam implements proactive, flexible, appropriate, timely and effective monetary policy management solutions to remove difficulties for production and business, promote growth associated with macroeconomic stability and control inflation. It is important to grasp the situation to choose appropriate priorities, synchronously and flexibly use the four available tools including compulsory reserves, refinancing, interbank market and open market.

Continue to review and improve institutions, mechanisms and policies on currency and banking; including completing the draft Law on Credit Institutions (amended) to submit to the National Assembly for approval at the 6th Session (October 2023); study and review the amendments to the Law on the State Bank of Vietnam and the Law on Deposit Insurance; improve the law on security, safety and confidentiality in e-banking activities. Quickly issue decrees and circulars on issues that Circular 02 has not yet regulated for corporate bonds.

The Prime Minister requested the State Bank of Vietnam to focus on managing credit growth with a reasonable structure, meeting the credit capital demand of the economy; directing credit capital to production and business, priority areas and growth drivers.

Continue to implement synchronous and drastic solutions to reduce interest rates, especially lending rates. Determine credit growth limits appropriate to the practical situation.

Direct the review of lending conditions and criteria to make appropriate and more favorable adjustments, ensuring increased access to credit for people and businesses, especially small and medium enterprises. Accelerate the implementation of the VND40,000 billion interest rate support credit package and VND120,000 billion social housing loans.

For credit institutions, it is necessary to implement solutions to reduce costs, cut fees to reduce lending interest rates; review and adjust lending conditions and criteria, reduce, simplify, publicize and make transparent lending procedures to increase access to credit for businesses and people. Improve service quality, customer care, ensure healthy, equal, and open mechanisms. Strengthen coordination, exchange, share, advise and support businesses to overcome difficulties.

Regarding the restructuring of credit institutions and bad debt settlement, continue to resolutely and effectively implement the Project on Restructuring the Credit Institution System in conjunction with bad debt settlement in the 2021-2025 period. At the same time, focus on and urgently handle and restructure weak commercial banks, ensuring liquidity and system safety. Urgently allow the Vietnam Asset Management Company (VAMC) to continue handling debt, ensuring timeliness and effectiveness.

Promote innovation, apply science and technology in banking activities, continue to lead in digital transformation, develop national digital payment infrastructure in a synchronous, unified, connected and interconnected direction with national databases. Continue to promote non-cash payments, digitization, publicity and transparency of lending processes and procedures. At the same time, it is necessary to strengthen security and safety in payment activities and digital transformation.

Participate in developing a healthy, effective and sustainable corporate bond market in the context that the scale of Vietnam's corporate bond market is still modest with outstanding debt of about 15% of GDP, lower than that of Southeast Asian countries, while according to the national financial strategy, the scale of the corporate bond market will reach at least 20% of GDP, and outstanding debt of the bond market will reach 47% of GDP by 2025.

The Prime Minister requested the banking sector to actively participate in removing difficulties and obstacles, contributing to the development of a safe, healthy and sustainable real estate market.

The Prime Minister requested the banking industry to pay close attention to communication work, especially the message and strong commitment of the Government, the Prime Minister, and the State Bank to always accompany businesses and protect the legitimate and legal rights of the people; remove difficulties, support businesses to overcome challenges; protect people, businesses do the right thing, handle wrongdoers, and not criminalize economic-civil relations. Ensure the harmony of interests of people, businesses, and the State in the spirit of "Harmonious interests, shared risks". Create conditions for businesses to focus on overcoming difficulties, have time to recover, and build long-term business plans.

At the same time, the Prime Minister requested ministries, branches and localities to closely coordinate with the State Bank, credit institutions in the area and the business community to remove difficulties for production and business, especially reviewing and perfecting mechanisms, policies and laws, reforming administrative procedures, and reducing costs for people and businesses.