Hanoi (VNA) – Prime Minister Pham MinhChinh on January 8 asked the banking sector to maintain its role as the “blood of life” for the national economy, while addressing a conference in Hanoi on January 8.

The conference, held by State Bank of Vietnam (SBV),was connected with the bank’s branches in the 63 cities and provinces nationwide,with the attendance of representatives from different ministries and agencies.

The government leader expressed his delight at thefact that despite a host of difficulties, bank deposits still reached 13.5 quadrillionVND (533.99 billion USD) in 2023, which, he said, demonstrates people’simproved living standards as well as their confidence in the Party, the State, and the banking sector.

He spoke highly of the significant contributions by thecentral bank and the banking sector in general to national achievements lastyear, and lauded great efforts and strong resolve displayed by the sector inthe year.

The PM also noted some limitations regarding policies,elaborating that some credit mechanisms and policies remain poorly flexible and matching the situation. Besides, he said, ministries and agencies need totighten their coordination, and inspections and supervisions should beimproved.

Highlighting the importance of the year 2024 to theimplementation of the 2021-2025 socio-economic development plan, Chinh urgedthe SBV and the entire sector to join hands with ministries, agencies andlocalities to fulfill the tasks set for this year.  

The banking sector must help the Government out of a passive position in the rolling out of monetary policies, ensure no corruption, helpbusinesses and people access capital, and serve the rapid, inclusive, sustainabledevelopment, he continued.  

He also asked the sector to further keep a closewatch on domestic and international situation to take timely policy response, andcombine monetary policies with fiscal ones harmoniously, with priorities to spurring economic growth in tandem with stabilising the macro economy, capping inflation at about 4-4.5%, ensuring major economic balances, stabilisingmonetary and foreign exchange markets, and ensuring the safe operation ofcredit institutions.  

Credit loans should target priority business areasand major growth engines, the leader said, stressing the need to closely control those inthe areas with potential risks, and that loans should not focus on only somebig firms and clients.  

He suggested the sector offer more creditincentives, take more measures to cut loan interest rates and unnecessary fees,simplify lending procedures and conditions, and step up the application ofinformation-technology and digital transformation.

The legal framework should be reviewed to facilitatethe safe, healthy, smooth and sustainable operation of the sector, he said, touching upon human resources development in the sector.

According to a report presented at the conference,the banking sector has contributed to stabilising the macro economy and controllinginflation at around 3.2-3.4% in 2023.

The central bank reduced operating interest ratesfour times by 0.5 - 2% percentage points in the context that world interestrates continued to rise and remained at high levels.

The bank has set a credit growth target of 15%this year, up 1 percentage point from last year’s target./.