SOLUTION FOR MANAGEMENT OF MONETARY POLICIES IN THE LAST 6 MONTHS OF 2016
The State Bank of Vietnam issued Directive No. 04/CT-NHNN on May 27, 2016 on a number of solutions for management of monetary policies and banking operations in the last months of 2016, requested the affiliates of the State Bank to follow closely development of macroeconomics, monetary and banking operations to manage monetary policy tools comprehensively and flexibly; mainly regulate open market operations, refinance with reasonable terms, amount and interest rates to support the liquidity and capital to credit institutions provided taking account of ensuring the objective for inflation control…
For the credit institutions, shall actively keep balance between capital sources and capital use to ensure liquidity, stable deposit rates, with conditions for lending rates; focus on management of liquidity risks, risks of differences in terms and currencies, and safe operation of credit institutions; review and keep balance of the financial capacity to apply reasonable lending rates on the basis of deposit rates and the risk levels of loans; implement reduction in operational costs and improve business efficiency to reduce lending rates in order to share difficulties with the borrowers as long as financial safety is guaranteed…
Besides, credit institutions shall control credit growth in line with the ability to mobilize capital and credit growth targets notified by the State Bank, ensure that credit will grow safely and efficiently which enables enterprises to access to loan capital; and strictly control loans in areas potentially posing risks…
