The Government requests the State Bank of Vietnam to review and simplify lending processes and procedures

The Government requests the State Bank of Vietnam to review and simplify lending processes and procedures

As prescribed in Subsection 4, Section 1 of Resolution 164/NQ-CP in 2023, the tasks of the State Bank of Vietnam to strive to complete the highest level of the tasks and objectives of the socio-economic development plan in 2023 are as follows:

- Continue to direct and guide credit institutions to review and simplify lending procedures and procedures to increase access to credit for businesses and promote the disbursement of the 40 billion VND loan package to support interest rates, 120 billion VND for social housing loans, 15 billion VND for the forestry, fishery sector;

- Direct credit to production and business sectors, priority sectors and growth drivers; continue to strive to reduce the base lending rate.

In addition, the State Bank of Vietnam also has a number of other tasks, such as:

- Stick to market developments to continue to implement monetary policy in a proactive, flexible, timely, and effective manner, coordinate closely and harmoniously with fiscal policy and other policies, not to create major fluctuations, sudden changes, affecting the market sentiment, businesses, investors, and people; manage exchange rates in accordance with the situation, contributing to controlling inflation, stabilizing the macroeconomy, the money market and foreign exchange.

- Continue to monitor the implementation of Circular 02/2023/TT-NHNN, Circular 03/2023/TT-NHNN, Circular 06/2023/TT-NHNN and other Circulars issued to timely guide and effectively resolve the practical difficulties arising in the reality of access to capital for people and businesses.

- Closely monitor the situation of bad debts, have solutions to limit the increase in bad debts, improve the quality of credit, ensure the safety of the system of credit institutions; urgently report to the competent authority a plan to handle weak banks according to the direction of the Government at Clause 4.d Clause 1 of Resolution 144/NQ-CP in 2023.

The Government requests the State Bank of Vietnam to review and simplify lending processes and procedures - Source: Internet

What are regulations on organizational structure of the State Bank of Vietnam?

Pursuant to Article 3 of the Decree 102/2022/NĐ-CP stipulating organizational structure as follows:

- Monetary Policy Department.

- Foreign Exchange Management Department.

- Payment Department.

- Credit Department of Economic Sectors.

- Forecasting and Statistics Department.

- International Cooperation Department.

- Monetary and Financial Stabilization Department.

- Internal Audit Department.

- Department of Legal Affairs.

- Finance and Accounting Department.

- Human Resources Department.

- Communication Department.

- SBV Office.

- Information Technology Department.

- Issue and Vault Department.

- State Foreign Exchange Reserve Management Department.

- Administration Department.

- Operations Center.

- Banking Supervision Agency.

- SBV municipal and provincial branches.

- Banking Strategy Institute.

- National Credit Information Center of Vietnam.

- Banking Times.

- Banking Review.

- Banking Academy.

Is it correct that the State Bank of Vietnam shall decide on tools for the implementation of the national monetary policy?

Pursuant to Article 3 of the Law on State Bank of Vietnam in 2010 stipulating national monetary policy and competence to decide on the national monetary policy as follows:

National monetary policy and competence to decide on the national monetary policy

1. The national monetary policy consists of national-level decisions on monetary affairs made by competent state agencies, including decisions on the objective of currency value stability which is denoted by the inflation rate and decisions on the use of tools and measures to obtain the set objective.

2. The National Assembly shall decide on annual inflation rate targets by making decisions on consumer price indexes and overseeing the implementation of the national monetary policy.

3. The President shall perform his/her tasks and powers provided by the Constitution and laws in negotiating, concluding and acceding to, in the name of the State of the Socialist Republic of Vietnam, treaties on monetary and banking matters.

4. The Government shall propose the National Assembly to decide on annual inflation rate targets. The Prime Minister or the Governor of the State Bank shall decide on the use of administrative tools and measures to obtain objectives of the national monetary policy according to the Government's regulations.

Pursuant to Article 10 of the Law on State Bank of Vietnam in 2010 stipulating tools for the implementation of the national monetary policy as follows:

Tools for the implementation of the national monetary policy

The Governor of the Stale Bank shall decide on the use of tools for the implementation of the national monetary policy, including re-financing, interest rates, exchange rates, reserve requirements, open-market operations and other tools and measures as prescribed by the Government.

As regulations above, national monetary policy is the monetary decisions at the national level of the competent state agency, including the decision on the target of stabilizing the value of the currency expressed in the inflation indicator, the decision to use tools and measures to implement the set target.

The person authorized to decide to use tools to implement national monetary policy is the Governor of the State Bank of Vietnam.

Best regards!