Credit growth reached a high level despite difficult economy

	State Bank works to maintain stable interest rates
	Interest rates under pressure
	Banks are trying to raise standards under Basel II

Banking operation in the first 6 months of 2017 achieved positive results. Photo: H.D

According to Deputy Governor Nguyen Thi Hong, in the first 6 months of 2017, the monetary and foreign exchange market and the banking system index are basically positive and stable.

From the beginning of 2017, many experts predicted that stability of interest rates and reduction of lending interest rates are difficult and challenging for the SBV. However, they are is still stable.

"In the beginning of 2017, some banks raised deposit rates, but they mainly raised deposit rates and issue over 12 months certificates of deposits. Therefore, the SBV took the initiative in working with credit institutions to find out the reasons as well as instructing credit institutions to implement solutions to stabilize interest rates " the Deputy Governor of the SBV said.

In addition, according to the leader of SBV, liquidity, currency, interest rates on the open market operations (OMO) and inter-bank are also properly regulated so that the credit institutions remain stabilization.

In particular, Governor of SBV has resolutely directed the credit institutions to control credit risk and ensure fund balance, the short-term ratio for medium and long term loans, credit in the risk fields: real estate, BOT and etc. Therefore, real estate credit has slow growth compared to 2016.

"The SBV does not issue forbidden regulations and credit norms for BOT and BT fields but it directs credit institutions to balance and use funds to ensure system security," Nguyen Thi Hong said.

Therefore, until May 25th, 2017 credit grew 6.53%, higher than the same period of 2016 (5%) and the same period of 2015 (4%). This is a positive sign in the difficult context of economic and disbursement of State capital investment.

Regarding exchange rate and foreign exchange movements, before the unpredictable fluctuations of the world market, the SBV closely monitored the movement to announce the exchange rate consistent with world market exchange rate movements and monetary policy objectives.

The bad debt ratio was classified among banks in the first quarter VCN- According to statistics of Bao Viet Securities Company (BVSC) from 10 banks including Vietcombank, Vietinbank, BIDV, ...

For the results of monetary policy management in the first 6 months of 2017, the Deputy Governor of SBV said that the SBV actively coordinated with other ministries and sectors to assess and summarize and complete the dossier to submit to the National Assembly on the draft Resolution on handling bad debts and the draft on amendment and supplement of the Law on credit institutions.

Accordingly, in addition to expanding the scope of bad debts, the draft Resolution will also solve obstacles to establish the debt trading market. Typically, allowing credit institutions and VAMC to sell bad debts and debt security assets according to market prices and the law, selling bad debts at higher value than those in debt book; Allowing VAMC to buy bad debts both in and out of the list; Allowing VAMC to convert bad debts purchased by special bonds into bad debts purchased by market prices; Allowing VAMC to sell debts to all relevant organizations and individuals.