10:08 | 07/01/2020 Economy
The State Bank of Vietnam (SBV) held a teleconference in Hanoi on January 2 to set out tasks for the banking sector in 2020 in the presence of Prime Minister Nguyen Xuan Phuc.
|PM Nguyen Xuan Phuc speaking at the conference|
Addressing the event, PM Phuc appreciated the SBV for making significant contributions to the overall achievements of the nation in 2019. The SBV has effectively implemented the monetary policy aligned with other policies to help ensure the supply of capital for the economy while controlling interest rates and inflation, the PM noted.
Aside from the positive results, the PM also pointed out several inadequacies for the banking sector to overcome in 2020.
He asked the banking sector to well implement tasks and solutions set out in the Government Resolution 01 and 02 while providing timely consultancy for the Politburo and Government on monetary macro fluctuations and international and domestic credit development.
The government leader emphasised the importance of macroeconomic stability in Government policy, asking the SBV to ensure an appropriate credit growth to meet the requirements of the economy.
PM Phuc urged the SBV to implement an active and flexible monetary policy associated with fiscal policy and other policies to stabilise the economy, control inflation, support business and fuel growth.
The PM also requested the SBV to create favourable conditions for the operations of commercial banks and credit institutions, and to diversify and enhance the quality and services of the banking sector to facilitate people and enterprises.
He also asked for the settlement of weak banks and non-performing loans while promoting the application of advanced technology in the banking system towards electronic and digital bank models.
The non-performing loan ratio at credit institutions dropped to 1.89% in 2019, meeting the set target of below 2%.
The entire credit institution system has handled VND1,064 trillion (US$46 billion) worth of non-performing loans between 2012 and 2019.