Governor of the State Bank of Vietnam Le Minh Hung answers lawmakers' questions (Photo: VNA)Hanoi (VNA) – Governor of the State Bank ofVietnam (SBV) Le Minh Hung on November 17 continued taking part in lawmakers’question-and-answer session, making clear issues relating to the bakingsystem’s issues, including credit growth, debt rescheduling for storm victims,and credit institution restructuring.
Regarding credit growth, he said the SBV hassolutions to control credit for risky sectors like securities and real estate,elaborating that it may adjust the rate of short-term capital used to providemedium- and long-term loans or only give loans to social and low-income housingsegments.
Meanwhile, only banks with bad debt percentageof 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’ chartercapital, Hung said.
The central bank believes that these regulationsare strict enough to control risks, he added.
The SBV requested banks to restructure andfreeze debt owed by people affected by typhoons Doksuri and Damrey, which respectivelyhit 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 willcontinue making review to freeze or reschedule debt and provide more loans, theGovernor noted, adding that it can ask the SBV and the Finance Ministry fordebt cancellation if necessary.
In terms of credit institution restructuring,Hung said the move is meant to improve credit access. The State will makedrastic steps to restructure the banking system and handle non-performing loansto ensure the safety of the system, he noted.
He expressed his belief that banking activitieswill become safer and healthier in the time ahead.
The central bank governor was among officialsset to answer lawmakers’ questions regarding issues within their remits. Thequestion and answer sessions are part of the ongoing fourth session of the 14thNational Assembly.-VNA
VNA
