Hanoi (VNA) - Deputy Prime Minister Ho Duc Phoc on August 1 emphasised the importance of effectively managing monetary policy, maintaining macroeconomic stability, curbing inflation, stabilising the exchange rate, and promoting economic growth.

Chairing a meeting of the steering committee for the restructuring of credit institutions and handling bad debts, the Deputy PM said that the steering committee has implemented the restructuring of credit institutions, with four banks successfully transformed. The restructuring of the Sai Gon Joint Stock Commercial Bank (SCB) is currently underway.

Appreciating the opinions and recommendations of representatives from relevant ministries and agencies, he requested the State Bank of Vietnam to incorporate the feedback and finalise a report to continue implementing effective measures for managing the operations of credit institutions in the time ahead.

It is important to exercise strict oversight to maintain the stability of the banking system and continuously monitor and assess restructured credit institutions as well as potentially weak banks in order to implement timely and effective solutions.

Emphasising the need for a harmonious, balanced, and synchronised combination of monetary and fiscal policies, Phoc also highlighted the importance of accelerating digital transformation in payment activities, ensuring the effective implementation of monetary policy, and securing capital supply for production and business. He emphasised the need to manage the foreign exchange market effectively, maintain the stability of the exchange rate against the US dollar, and propose solutions for issuing bonds in the US dollar.

Regarding credit growth limits (credit room), the Deputy PM emphasised that while this remains a necessary short-term management tool, increasing credit room is essential in the current context.

For banks operating efficiently, the credit room should be expanded to increase capital flow into the economy, he noted.

In addition, it is important to design and effectively implement preferential credit packages, such as loans for social housing and poverty reduction, while closely managing cash flows and directing credit towards production and business activities, thereby promoting rapid and sustainable economic development, Phoc stated.

🅰 He also called for more focused banking inspections and supervision, effective prevention of cross-ownership, and strong, decisive efforts to resolve bad debts./.