Banking sector looks to keep inflation at around 4 percent

The headquarters of the State Bank of Vietnam (Photo: VNA)

Hanoi(VNA) - The banking sector has set a goal of flexibly managing and coordinatingmonetary, macroeconomic, and fiscal policies to control the inflation rate to around4 percent this year and serve economic recovery and growth.

The goal isdefined as part of the State Bank of Vietnam Governor’s Directive No 01/CT-NHNNon key tasks for the sector in 2021.

Per the document,credit growth is projected to increase approximately 12 percent and be furtheradjusted to suit actual developments. Growth is to be associated with improvedcredit quality, particularly in production and prioritised sectors, and the tightcontrol of fields with risk.

Continuedassistance to clear any credit difficulties facing individuals and businessesimpacted by natural disasters and diseases is also an important mission.

The directivehighlights the synchronous management measures to be taken to stabilise the forexand gold markets as well as increase foreign exchange reserves once conditionsallow.

Other key tasksinclude restructuring credit institutions, particularly those that are ineffective;tackling bad debts; improving the operations of people’s credit funds; andpromoting cashless payments./.

VNA