The meeting held to review 2024 results of the banking industry's performance. — Photo SBV

 

Lending interest rate of commercial banks in 2024 decreased by 0.44 percentage points compared to 2023, Deputy Governor of the State Bank of Vietnam (SBV) Đào Minh Tú said.

 

At the SBV’s meeting to review results of the banking industry's performance in 2024 and set tasks for 2025, held late last week, Tú said the decline was seen in the context that the SBV has continued to maintain the benchmark interest rate at a low level as a guide to the market to reduce lending interest rates to support businesses and people.

 

“The move, which was in line with developments in Vietnam and the world, has helped support economic growth associated with inflation control in the country,” Tú said.

 

According to SBV’s Governor Nguyễn Thị Hồng, credit growth has created strong momentum for the economy to recover and develop as it continues to face challenges. As of December 2024, credit focused on manufacturing and priority sectors such as social housing, construction, agriculture, aquaculture and high technology. The credit focus has not only helped minimise bad debt risks, but also create momentum for sustainable economic development.

 

Hồng added that across 2024 the SBV has also been closely monitoring the lending of commercial banks to ensure safe and effective credit growth, which has contributed to creating rising momentum for the economy, while still limiting risks.

 

“The synchronous solutions have helped strengthen the confidence of investors and businesses within Vietnam's financial system,” Hồng said.

 

With the strong credit growth in 2024, the SBV assesses that Vietnamese economy is on the path to recovery and continues to maintain macro-economic stability.

 

The SBV said the credit policy will continue to be flexibly adjusted to support businesses, especially in key economic sectors, contributing to boosting growth and improving people's quality of life.

 

As for the foreign exchange rate in 2024, the SBV said the forex market has been under a great pressure and rapid changes due to unpredictable international economic and political developments, the strong appreciation of the US dollar and the large interest rate gap between the Vietnamese đồng and the US dollar on the domestic interbank market.

 

In this context, the SBV has flexibly managed the exchange rate and synchronously applied the monetary policy to limit the exchange rate pressure. It has sold the dollar to support market liquidity in periods of great pressure. The measures have helped the forex market to be stable, and the depreciation of the đồng has been reasonable with the general trend of currencies in the region and the world.

 

As for 2025, Governor Hồng said the SBV will resolutely and effectively implement a project on restructuring the credit institution system associated with bad debt settlement to contribute to the system’s healthy, efficient and transparent development, in accordance with the country’s laws and international standards.

 

"2025 is the last year of implementing the Việt Nam’s socio-economic development plan for the 2021-25 period, so it has a special importance in preparing for the Government in the new term. Therefore, the SBV next year will have to intensively focus on key tasks and specific solution groups to achieve the goals set for the banking industry in the period,” Hồng said. — VNS     

 

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