SBV under no pressure to boost credit growth

11-Nov-2017 Intellasia | The Saigon Times | 6:00 AM Print This Post

The State Bank of Vietnam (SBV) has come under no pressure to loosen monetary policy to help the country achieve the economic growth target of 6.7 percent this year, Dan Tri news website quoted SBV governor Le Minh Hung as saying.

At a meeting with Victoria Kwakwa, vice President for the East Asia and Pacific Region at the World Bank, Hung said the manufacturing, export and agro-fishery sectors grew strongly and consumer spending surged in the first ten months of the year.

SBV will work towards curbing inflation at less than 4 percent this year, Hung said, adding the central bank had asked credit institutions to control credit growth and ensure credit quality.

Hung said the National Assembly (NA) of Vietnam had issued a resolution on settlement of bad debts, thus paving the way for the banking sector to lower bad debt.

The central bank will ask the NA for approval of a draft law amending and supplementing the current Law on Credit Institutions to make commercial banks more transparent in line with international standards and practices.

The central bank has also sought NA approval to adopt measures to deal with poor-performing banks.

Hung expressed appreciation of the WB’s technical support to settle bad debts in Vietnam, saying he expected the WB would provide continued help for Vietnam in the near future.

At the meeting, Victoria Kwakwa said the business environment in Vietnam has improved significantly and economic growth of 6.4 percent is impressive. The WB will continue supporting SBV and the Vietnamese government in the near future, she added.


Category: Finance

Print This Post