The Prime Minister said that banks need to sacrifice a part of profits to reduce lending rates, support the economy to achieve growth of over 8% this year.
On February 11, Prime Minister Pham Minh Chinh chaired the conference between the Standing Government and commercial banks. The conference took place in the context of this year, the Government sets up GDP plans to increase over 8%, creating momentum for the next two -digit growth.
The Prime Minister assessed that the banking industry made an important contribution to maintaining macroeconomic, controlling inflation, and promoting growth. He also said that the banks shared with people and businesses when they reduced their profits to lower lending interest rates.
By the end of last year, the loan interest rate decreased by 1.24% compared to the end of 2023. Liquidity of the system of abundant credit institutions, meeting the capital needs of the economy, contributing to controlling inflation, stabilizing exchange rate. Bad debt is 3%lower than the target.
However, the Prime Minister said that the banks still need to reduce costs, “sacrifice a profit to lower lending interest rates, support the economy”.
“Business banks must be profitable but in addition to profits must bring common benefits to the country,” the Prime Minister said.
Prime Minister Pham Minh Chinh spoke at the conference with commercial banks, February 11. Image: VGP
In 2025, the Government aims to maintain macroeconomic stability, inflation control, GDP growth at least 8% or more. Consumer price index (CPI) is 4-4.5%. In order to achieve the growth target, resources to be poured into the economy are very large, through capital from the budget and investment money of people and businesses.
In the context of medium and long -term capital mobilization channels such as securities and bonds, credit will be an important capital leading channel for the economy. Typically, to have 1% of economic growth, credit must increase by 2 percentage points. That is, this year’s credit must increase by about 16%, to ensure growth goals.
Public investment is one of the main drivers to promote economic growth. However, according to the Transport Minister Tran Hong Minh, which is needed to develop transport infrastructure projects is very large. In addition to the budget resources, Mr. Minh said the industry needs the companion of the bank, because the total investment for 5 very large types of transportation, up to 6.27 million billion dong to 2035.With this field, Mr. Do Minh Phu, Chairman of TPBank, said that this bank participated in many BOT projects, such as Cam Lam – Vinh Hao, Huu Nghi – Chi Lang, to contribute to the goal of completing 3,000 km of highways this year. .
Last year, TP Bank grew credit 20.25%. This bank reduces the loan interest rate for about 92,000 customers, equivalent to VND 1,900 billion out of VND 183,000 billion. In order to ensure this year’s growth, Mr. Phu proposed the management agency to decrease, proceeding to eliminate the management of allocation of credit growth (room) for each bank. This was also mentioned by Deputy Governor of the State Bank Dao Minh Tu when reporting to the Government this morning.
The Governor of the State Bank Nguyen Thi Hong at the Conference on February 11. Image: VGP
In the opinion of credit institutions, Prime Minister Pham Minh Chinh assigned the Government Office and the State Bank to study and handle petitions. He also noted that the parties removed for the long -lasting outstanding project of private companies, supporting small and medium enterprises.
Government leaders remind banks to operate in accordance with laws, anti -corruption and harassment. He for example the past violations related to bonds are somewhat responsible for the banks. Therefore, the system needs to review and rectify business ethics. “Must remove the bad element from the banking system, cannot push customers into difficult circumstances, profiteering from them,” he said, adding that the inspection agency of the banking industry needs to operate more effectively.
The Governor of the State Bank Nguyen Thi Hong affirmed that the banking industry will focus on promoting credit growth, inflation control and supporting the economy to grow by 8% or more. Accordingly, this agency will manage flexible monetary policy, exploit growth drivers, and handle bad debts and promote digital transformation.
According to the Governor of the credit growth, this year will be flexible according to the actual situation. That is, if inflation is low, the State Bank can increase credit to stimulate growth. Conversely, if there are signs of risk, credit policies will be adjusted to ensure macro stability.
Ms. Hong also said one of the priority is to support small and medium enterprises, because this is an area that creates many jobs and contributes greatly to the economy. The State Bank will exploit consumer credit strongly, because when consumer increases, businesses will have the motivation for production.
The Prime Minister Deputy Prime Minister Ho Duc Phoc directed, Governor Nguyen Thi Hong built a law record for Resolution 42 on piloting the handling of bad debts of credit institutions and submitted to the National Assembly in the next May meeting. At the same time, the operator will correct the relevant regulations to increase capital for state -owned commercial banks to ensure competition with joint stocks.