Vietnam will be determined to limit credit growth to below 30 per cent in 2008 with indirect managing tools and measures, governor of the State Bank of Vietnam (SBV) Nguyen Van Giau said in a document on the occasion of the bank’s 57th establishment anniversary.
This is one of seven tasks that central bank set forth to implement till the end of this year in order to stabilize monetary market.
The central bank will build a mechanism to ensure real interest rate positive and apply a flexible exchange rate in line with supply and demand. It will continue to closely monitor monetary market and set up a quick and reliable information system for timely intervention.
The SBV will work with related government agencies to seek measures to help absorb foreign indirect investment flows effectively and to allow foreign investors to buy shares in foreign currencies.
The bank will issue regulations on limiting unsound competition between credit institutions, carry out inspections and supervisions over the governance, management, controlling and auditing activities in commercial banks.
Giau said the SBV will continue to tighten control over loans for securities investment and real estate sector.
Vietnam has taken several measures to stabilize local monetary market and seen positive results.
As the end of April, total payment balances increased 5.53 per cent from the end of 2007, which is much lower than the 14.62 per cent rise in the same period last year.
Outstanding loans grew 14.73 per cent against late 2007. Though the lending is higher than the 9.79 per cent growth in the same period last year, it increased only 1.66 per cent in April, lower than February, March and the 6.3 per cent growth rate in January.
It helps to slow down CPI from a rise of 3.56 per cent in February to 2.99 per cent in March and 2.2 per cent in April.
The State Bank of Vietnam was established in 1951. The country’s banking system now has five state-owned banks, two state-owned credit institutions providing soft loans, 34 joint stock banks, 44 foreign bank branches, five joint venture banks, 13 financial leasing companies, nine financial companies, 54 representative offices of foreign banks and nearly 1,000 people credit funds. (SBV)
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