At the government's regular meeting in July, State Bank Governor Nguyen Thi Hong said that total system credit in the first 7 months increased by about 10% compared to the end of 2024. This is a relatively high increase compared to the 6% figure in the same period last year.
The credit growth rate in real estate and securities is higher than the general average, but it remains safe and does not pose a risk to the system, according to the Governor.
She analyzed that real estate credit growth is in line with the direction of removing obstacles for the real estate market. Because, when projects have legal obstacles removed, the capital demand for implementation increases inevitably. Meanwhile, credit capital poured into the securities sector only accounts for 1.5% of the total outstanding loans of the entire system.
"The State Bank always closely monitors safety indicators," Ms. Hong affirmed. According to her, the ratio of short-term capital used for medium and long-term loans is still below the 30% threshold. At the same time, the regulator also continuously directs credit institutions to balance capital by term to ensure system safety.
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State Bank Governor Nguyen Thi Hong reports at the Government meeting, 7/8. Photo: VGP |
State Bank Governor Nguyen Thi Hong reports at the Government meeting, 7/8. Photo: VGP
Vietnam aims for GDP growth of over 8% this year. At recent government meetings, Prime Minister Pham Minh Chinh requested striving for this year's growth to reach 8.3-8.5%, to ensure two-digit growth in the coming period. To ensure the growth target and control inflation, the State Bank is assigned to operate monetary policy flexibly, appropriately, and in sync with fiscal policy.
At the meeting, the Governor pointed out some pressures affecting monetary policy management this year. Specifically: the global growth outlook is weakening, and the risk of global inflation rising again remains, especially when US tariff policies change rapidly. The international financial and monetary market is unpredictable, and rising USD interest rates put increasing pressure on monetary policy management.
"These are factors that not only have a psychological impact but also profoundly affect the economic foundation," she said.
The Governor said that lending interest rates continued to decrease by about 0.4% per year compared to the end of 2024, showing the management efforts of the banking regulatory agency.
However, the exchange rate is under considerable pressure due to the dual impact of economic factors and market psychology. To date, the USD price has increased by 2.9% compared to the end of 2024. The Governor said that if the pressure continues to increase sharply, the State Bank will consider not continuing to reduce interest rates to avoid affecting exchange rate stability - a risk that could cause macroeconomic instability.
"We will closely monitor developments and prioritize appropriately for each period, aiming towards the common goal of macroeconomic stability and supporting sustainable economic growth," the Governor affirmed.
In the long term, the Governor emphasized the need for synchronized solutions to support more effective monetary policy operations. Among them, the State Bank believes that Vietnam needs to strongly develop the market to meet the demand for medium and long-term capital, thereby reducing pressure on the short-term capital sources of the banking system.
Along with that, credit guarantee programs for small and medium-sized enterprises need to be expanded, helping to create strong production momentum from all sectors of the economy. In addition, sectors such as real estate and infrastructure - which require large medium and long-term capital - should be mobilized through corporate bond issuance, local bonds, or international loans.
"Mobilizing capital in the right channels, with the right characteristics, can achieve both high growth and sustainable stability," she added.
Phuong Dung
