State Bank of Vietnam's headquarters in Hanoi (Photo: VNA) Hanoi (VNA) - The State Bank of Vietnam (SBV) sought to further cut interestrate in an effort to boost the country's economic recovery, said its Deputy GovernorNguyen Thi Hong in a press conference in Hanoi on September 22.
Hong saidthe central bank will continue to support credit institutions in all possible waysincluding cash injection.
The SBVencouraged credit institutions to reduce red-tape, cut cost and better supportnew customers all the while maintaining high lending standards to ensure thelong-term sustainability of the banking sector.
Demand forloans this year has stayed low as the economy was hit hard by the COVID-19pandemic. The country's credit growth experienced modest growth of just 4.8 percentcompared to the same period last year.
Bad debtratio remained at under 2 percent as most commercial banks finished theimplementation of Basel II. During the first seven months of 2020, banksmanaged to recovered over 63 trillion VND (2.7 billion USD).
Exchangerate versus the greenbacks has remained stable since the beginning of the yearas the SBV continued to shore up its forex reserves. The central bank expressedconfidence in keeping inflation in check this year but said economic growthwill be dwarfed due to the pandemic.
Since theinitial outbreak of the novel coronavirus last year, central banks around theworld have cut interest rate 185 times. The SBV alone has slashed interest ratefour times by 1-1.5 percent since April 2019./.
Hong saidthe central bank will continue to support credit institutions in all possible waysincluding cash injection.
The SBVencouraged credit institutions to reduce red-tape, cut cost and better supportnew customers all the while maintaining high lending standards to ensure thelong-term sustainability of the banking sector.
Demand forloans this year has stayed low as the economy was hit hard by the COVID-19pandemic. The country's credit growth experienced modest growth of just 4.8 percentcompared to the same period last year.
Bad debtratio remained at under 2 percent as most commercial banks finished theimplementation of Basel II. During the first seven months of 2020, banksmanaged to recovered over 63 trillion VND (2.7 billion USD).
Exchangerate versus the greenbacks has remained stable since the beginning of the yearas the SBV continued to shore up its forex reserves. The central bank expressedconfidence in keeping inflation in check this year but said economic growthwill be dwarfed due to the pandemic.
Since theinitial outbreak of the novel coronavirus last year, central banks around theworld have cut interest rate 185 times. The SBV alone has slashed interest ratefour times by 1-1.5 percent since April 2019./.
VNA
