At a press conference on the performance of the banking sector in Q3 2024, Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu emphasized that the claim of VND 14-15 quadrillion still sitting in banks is inaccurate. He stated that banks have fully lent out the capital they have mobilized.

By September 30, 2024, the total capital mobilized by the banking sector reached VND 14.5 quadrillion, with outstanding loans standing at VND 14.7 quadrillion. The Deputy Governor explained that the excess lending amount is due to the commercial banks' charter capital, refuting the idea that significant sums remain idle in banks.

Credit growth in the agriculture and rural sectors has exceeded 20%. Some sectors, such as forestry and seafood exports, have disbursed over VND 40 trillion, surpassing the initial VND 15 trillion credit package set out. The Deputy Governor announced that a VND 60 trillion package is being prepared for these sectors.

The preferential loan package of VND 120 trillion for social housing has already attracted bank registrations totaling VND 140 trillion. The loan terms will extend to 10 years, compared to the previous five years.

"The VND 140 trillion package will depend on the legal status of the projects and the implementation by investors. The banking sector is always ready to meet the capital needs of businesses and citizens," said the Deputy Governor.

Following Typhoon No. 3 (Yagi), which devastated many farmers, the SBV has instructed banks to defer debt payments for affected businesses and citizens and to continue providing new loans with interest support.

The SBV is also preparing a risk provision method to deal with post-typhoon losses. According to the new regulations of the Law on Credit Institutions, this will be under the jurisdiction of the Prime Minister, and the SBV will submit this method for approval.

In addition, the SBV has developed policies to support the project of 1 million hectares of high-yield rice in the Mekong Delta and will guide commercial banks in implementing this program.

In Q3, the SBV continued to operate a flexible monetary policy to ensure liquidity for the economy. Capital for the economy remains abundant, with commercial banks having excess liquidity, and the SBV ensures liquidity for both the economy and commercial banks.

Regarding the restructuring of credit institutions, most have completed their restructuring plans. The Deputy Governor noted that non-performing loans are on the rise, especially following Typhoon No. 3, posing a challenge for the banking sector that will need addressing in the coming months.

This afternoon, the SBV will officially hand over two "zero-dong" banks. Deputy Governor Dao Minh Tu mentioned that the last of the three "zero-dong" banks will be handed over soon. The SBV is also closely monitoring the performance of two weak banks, Dong A Bank and SCB.

Tuan Nguyen