Hanoi (VNA) – The banking sector plays the key role in maintaining the macro-economic stability and other major balances of the economy, stated Prime Minister Pham Minh Chinh at a New Year meeting with leaders and staff of the State Bank of Vietnam (SBV) on February 8.

Leaders of the SBV reported to the PM that last year, despite COVID-19 impacts, thanks to flexible management of credit growth, credit balance of the whole system rose compared to that in 2020, while the exchange rate was kept stable and interest rate was on a downward trend.

This year, the SBV will focus on removing difficulties for business and production activities, supporting pandemic-hit businesses and people, and restructuring credit institutions in association with settling bad debts, they said.

The Government leader recognised the sector’s contributions to the country’s success in pandemic control and socio-economic recovery.

The SBV showed flexible and active management in close coordination with fiscal policies, thus reducing interest rate, expanding credit and supporting people and businesses, and keeping the exchange rate and the foreign currency market stable, he noted.

Along with designing scenarios and plans to effectively settle bad debts, the SBV has drastically dealt with weak credit institutions, he said, while lauding the sector’s efforts in international integration, helping improve the prestige of the country's investment environment.  

The Government leader stressed that the domestic and world economy will continue to face many challenges due to COVID-19 in 2022, and asked the SBV to strengthen analysing and forecasting activities, while continuing to use monetary policy tools in a proactive, flexible and synchronous manner, as well as coordinating fiscal policies and other macro-economic policies to reign in inflation and create optimal conditions for people and businesses to access capital for production recovery and development./.