Deputy Prime Minister Le Minh Khai: flexibly manage monetary policy and control inflation

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Deputy Prime Minister Le Minh Khai spoke at the Q&A session on the morning of June 9. Photo: quochoi.vn

Continuing the 3rd session, the XV National Assembly, at the Q&A session on the morning of June 9, Deputy Prime Minister Le Minh Khai made a speech and clarified some contents of the third group of issues in the banking sector.

Specifically, on the management of monetary policy, to implement the Resolutions of the National Assembly, the Government and the Prime Minister have directed the State Bank to operate monetary policy flexibly, closely and coordinate with other policies and solutions to stabilize the macro-economy and control inflation in the context of high global inflation.

The operating policies did not have much influence on the increase in the inflation target, but mainly due to the increase in commodity prices.

The Government will closely follow the Resolutions of the National Assembly and monitor the situation in the country to operate monetary policy tools proactively, flexibly, and synchronously to control inflation according to the set targets; to stabilize the currency and foreign exchange markets, deploy monetary policy solutions to support the economic recovery and development program.

Simultaneously, the Government encourages credit institutions to continuously reduce operating costs to reduce lending interest rates; effectively implement interest rate support policies for enterprises, cooperatives, and business households; manage credit growth appropriately to fully and promptly meet capital demand for production and business, direct credit to priority areas associated with improving credit quality; and remove difficulties, support customers affected by the Covid-19 pandemic, ensure the safety of banking operations.

Regarding the restructuring of credit institutions and weak banks, Deputy Prime Minister Le Minh Khai said that the Government and the Prime Minister directed the State Bank and relevant agencies to drastically implement solutions to restructure the credit institution system. This has achieved important results, in particular, the legal framework continues to be perfected.

The credit system has made positive changes in terms of scale, financial capacity, credit quality, and operational efficiency; enhanced the role of providing credit to the economy, making an important contribution to mobilizing resources to promote socio-economic development, especially in priority sectors and fields serving production and business.

Overview of the Q&A session on the morning of June 9. Photo: quochoi.vn

To continuously improve the quality, operational efficiency, and safety of credit institutions, the Deputy Prime Minister said that after reporting to the Politburo, the Prime Minister would issue Decision 689/QD-TTg approving the project "Restructuring the system of credit institutions associated with bad debt settlement in the 2021 – 2025 period".

In which, there will be several regulations such as: perfecting the legal framework on currency and banking activities; restructuring and handling bad debts; and improving financial capacity, competitiveness, credit quality, efficiency in governance and administration, and transparency in the banking operations.

Simultaneously, promote the application of information technology and digital transformation in banking activities; continuously take measures to strengthen financial capacity and safety of banking operations; step up the handling of bad debts, improve credit quality for credit institutions; and consolidate and perfect the model as well as improve the financial capacity of Vietnam Asset Management Company.

Regarding credit control in the fields of securities, bonds, real estate, and implementation of the Resolutions of the National Assembly and the Resolution of the Government on the socio-economic development plan in 2022, according to the Deputy Prime Minister, the Government and the Prime Minister directed the State Bank to administer the credit policy to fully and promptly meet production and business activities; as well as prioritize control over potential risk areas.

“For projects and loan options in the real estate sector, which are feasible, have good liquidity, continue to provide credit in accordance with regulations to customers who are able to repay loans in full and on time," said the Deputy Prime Minister.