Governor: Interest rates will continue to fall in 2024

The SBV targets credit growth of 15% in 2024, while interest rates continue to fall. Restructuring of weak banks will also be implemented aggressively this year. Finance and Banking Governor: Interest rates will continue to fall in 2024. Nguyen said • {Publication date} The SBV targets credit growth of 15% in 2024 while interest rates continue to fall. Restructuring of weak banks will also be implemented aggressively this year.

VND (HM:) is one of the most stable currencies in the world

At a meeting held on the morning of January 8 to deploy banking industry tasks for 2024, State Bank of Vietnam Governor Nguyen Thi Hong said that by the end of 2023, the banking industry will basically achieve the set goals and objectives. , help control inflation and stabilize the macroeconomy.

The foreign exchange currency market is basically stable. The decline in interest rates has brought interest rates back to pre-Covid-19 interest rate levels. The Vietnamese Dong is one of the stable currencies in the region and even the world. In 2023, the Vietnamese Dong will depreciate by approximately 2.9%. Bank operations are safe and secure, and digital transformation content meets the goals set in the “Banking Industry Digital Transformation Plan”.

The SBV’s monetary policy management is believed to help stabilize the macroeconomy and control inflation at around 3.2-3.4%.

Stable inflation and growing foreign exchange reserves were factors in Fitch’s upgrade of Vietnam’s country credit rating.

In the context of world interest rates continuing to rise and remain at high levels, the State Bank of Vietnam has adjusted operating interest rates four times in a row, with a decrease of 0.5-2.0% per year, creating conditions for lower interest rates. Market loan rates.

As of now, the new transaction deposit and loan interest rates of commercial banks have dropped by more than 2.5% per year compared with the end of 2022.

By December 31, 2023, credit will have increased by 13.71% compared with the end of 2022.

Nguyen Thi Hong, Governor of the State Bank of Vietnam, spoke at the meeting. (Image source: SBV) In 2023, the number of non-cash payment (TTKDTM) transactions will increase from 50.3% to 99.1%, and the value will increase from 5.4% to 10.8%.

Interest rates will fall in 2024

In 2024, the global economic outlook and international markets will remain complex. Domestically, the economy is expected to still face many difficulties and challenges.

In this context, the National Bank focuses on a number of key directions and solutions, such as: Managing interest rates in line with market developments, macroeconomics, inflation and monetary policy objectives; Encouraging credit institutions to reduce costs, simplify credit procedures, and increase technology in the credit process Application and digital transformation efforts, efforts to reduce loan interest rates to support the economy. Flexible exchange rate management is conducive to stabilizing the foreign exchange market and is conducive to macroeconomic stability.

Credit growth is positioned at around 15% in 2024, which will be adjusted appropriately based on situation development and actual conditions. Continue to guide credit institutions to allocate credit to production and operation areas, priority areas and growth drivers (investment, consumption, exports) in accordance with government policies; strictly control credit in potential risk areas.

Continue to decisively and effectively implement the 2021-2025 credit institution system restructuring project related to bad debt disposal; focus on the implementation of the disposal plan for weak credit institutions. Guide credit institutions to promote the processing and collection of bad debts; strive to keep the on-balance sheet bad debt rate (excluding weaker commercial banks) below 3% by 2024.

In addition, the National Bank will continue to improve banking legal institutions and create a synchronized and convenient legal basis for monetary policy operations and bank operations.

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