Governor of the State Bank of Vietnam Le Minh Hung answers lawmakers' questions (Photo: VNA)

Hanoi (VNA) – Governor of the State Bank of Vietnam (SBV) Le Minh Hung on November 17 continued taking part in lawmakers’ question-and-answer session, making clear issues relating to the baking system’s issues, including credit growth, debt rescheduling for storm victims, and credit institution restructuring.

Regarding credit growth, he said the SBV has solutions to control credit for risky sectors like securities and real estate, elaborating that it may adjust the rate of short-term capital used to provide medium- and long-term loans or only give loans to social and low-income housing segments.

Meanwhile, only banks with bad debt percentage of under 3 percent are allowed to provide loans for the field of securities. Loans for investment in securities must be within 5 percent of banks’ charter capital, Hung said.

The central bank believes that these regulations are strict enough to control risks, he added.

The SBV requested banks to restructure and freeze debt owed by people affected by typhoons Doksuri and Damrey, which respectively hit Vietnam in mid-September and early November, and continue assessing damage.

[Central bank governor stresses solutions to bad debt settlement]

The Vietnam Bank for Social Policies will continue making review to freeze or reschedule debt and provide more loans, the Governor noted, adding that it can ask the SBV and the Finance Ministry for debt cancellation if necessary.

In terms of credit institution restructuring, Hung said the move is meant to improve credit access. The State will make drastic steps to restructure the banking system and handle non-performing loans to ensure the safety of the system, he noted.

He expressed his belief that banking activities will become safer and healthier in the time ahead.

The central bank governor was among officials set to answer lawmakers’ questions regarding issues within their remits. The question and answer sessions are part of the ongoing fourth session of the 14th National Assembly.-VNA