Banking sector ready to contribute to economic stabilisation

The State Bank of Vietnam said it would be consistent with the goal of controlling inflation, maintaining macroeconomic stability, and improving the quality of monetary policy planning and administration.
Banking sector ready to contribute to economic stabilisation hinh anh 1Illustrative image (Photo: Vietnam+)

Hanoi (VNA) - The State Bank of Vietnam said it would be consistent with the goal of controlling inflation, maintaining macroeconomic stability, and improving the quality of monetary policy planning and administration.

The year 2021 is expected to further face various difficulties in the context that the world and domestic situation continues to see challenges and unpredictable fluctuations.

However, leaders of the banking sector said they are prepared to proactively overcome all difficulties with a high sense of responsibility to fulfill their tasks to continue ensuring their role as the lifeblood of the economy, contributing to maintaining macroeconomic stability and sustainable development.

Stay stable in a volatile environment

The year 2020 is the last year of the 2016-2020 term, which is of great significance to completing the goals and plans set out for the whole period. However, since March 2020, the world has witnessed huge fluctuations unprecedented in decades due to the impact of the COVID-19 pandemic. In Vietnam, the epidemic has had a great impact on many aspects of social life such as business stagnation, job losses and falling salaries.

Playing a lifeline role in the economy, the banking system's operations are also inevitably affected by the pandemic. In that context, with the motto of focusing on implementing the "dual goals" set out by the Government and the Prime Minister, the banking sector soon forecast the situation and effectively implemented solutions to governing monetary policy.

During a discussion session at the 13th National Party Congress, Governor of the State Bank of Vietnam Nguyen Thi Hong said as a central bank, the State Bank has contributed to keeping averaged inflation less than 4% in line with the target set by the National Assembly.

The currency and foreign exchange markets are basically stable, and the State's foreign exchange reserves have increased to a record high, tripled compared to the end of 2015, Hong added.

Given the serious impact of the COVID-19 pandemic, the State Bank promulgated a number of timely and practical support solutions for businesses and people, thereby contributing to making Vietnam become one of the few economies in the world to achieve positive growth in 2020.

According to the Governor, the restructuring of the system of credit institutions associated with bad debt settlement has been carried out step by step effectively.

Over the past five years, the State Bank has always topped the Public Administrative Reform (PAR) Index.

In addition, in all aspects of banking activities, administrative reform and legal framework perfection are paid with a due attention, said Hong.

Determined to overcome difficulties

Experts said in 2021, the COVID-19 epidemic will still affect global trade and investment. Measures to control, blockade and restrict travel between countries may continue to affect the global value chain, which will have a negative impact on operations of import-export and tourism of Vietnam.

Banking sector ready to contribute to economic stabilisation hinh anh 2Illustrative image (Photo: Vietnam+)

The Governor of the State Bank said that given the challenges, the bank will continue to be consistent with the goal of controlling inflation, maintaining macroeconomic stability, improving the quality of monetary policy planning and administration, and closely coordinating with other financial institutions.
On the other hand, the banking sector took measures to remove difficulties for businesses and people, support the economy to recover after the COVID-19 pandemic.

In addition, it also promotes innovation and application of the Fourth Industrial Revolution achievements in payment activities in association with the implementation of the National Comprehensive Financial Strategy, promoting no-cash payments.

The Governor affirmed that the whole industry was prepared to actively overcome all difficulties with a high sense of responsibility to fulfill the tasks assigned by the Party, the National Assembly and the Government, ensuring its role as the lifeblood of the economy, contributing to maintaining macroeconomic stability and sustainable development./.


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