The central bank must apply an appropriate interest rate policy and control bad debts to ensure the banking system’s liquidity while taking appropriate measures to help businesses access loans, said Party leader Nguyen Phu Trong.

Trong made the request at a working session with key officials of the State Bank of Vietnam and representatives of commercial banks in Hanoi on December 22.

While commending the central bank for its efforts to stabilise the macroeconomy, curb inflation and ensure social security, the Party chief required the sector to work out a detailed plan of action to continue restructuring the banking system in a firm and effective manner.

He stressed the central bank’s important role in the context of a socialist-oriented market economy in Vietnam , saying that it must maintain a good balance between exercising state management over monetary and banking affairs and conducting other operations as a bank.

The Party leader also reminded the Party organisation in the central bank to conduct regular and serious self-criticism and criticism in line with the spirit of the Resolution of the 13th Party Central Committee’s 4th plenum.

According to the central bank’s report, over the past years it has introduced tight and flexible monetary measures to contain inflation, stabilise the value of the domestic currency (Vietnamese dong), prevent the dolarisation of the economy, increase foreign currency reserves, and improve the liquidity of credit organisations./.VNA