Following the restructuring of OceanBank and CBBank, the State Bank of Vietnam (SBV) is set to announce the mandatory transfer of two other struggling banks, GPBank and Dong A Bank, in the coming days.

Strengthening the banking system

At the Government-Local Authority Conference on January 8, SBV Governor Nguyen Thi Hong revealed that the banking sector has identified significant lessons from past crises.

Key changes have been introduced through amendments to the Law on Credit Institutions (TCTD), focusing on proactive oversight, internal auditing, and enhanced information security.

"In 2024, after a prolonged period, the SBV successfully completed the mandatory transfer of OceanBank and CBBank. Regarding GPBank and Dong A Bank, the Government has issued resolutions, and the SBV will soon formalize the decision and hold a transfer ceremony in the coming days," stated Governor Nguyen Thi Hong.

Monetary policy achievements

The Governor highlighted the challenges faced in 2024, particularly in managing monetary policy amidst global economic fluctuations.

Despite these difficulties, Vietnam's monetary policy effectively controlled inflation, reduced lending rates, stabilized exchange rates, and maintained currency market stability.

Credit growth for 2024 reached 15.08%, meeting the targeted guidance. The SBV has set a 2025 system-wide credit growth target of 16%.

During a press briefing on January 7, Deputy Governor Dao Minh Tu confirmed that credit growth exceeded expectations, with lending reaching approximately 23 quadrillion VND ($966 billion) in 2024, and loan repayments totaling 21 quadrillion VND ($882 billion).

Net credit injected into the economy in 2024 amounted to 2.1 quadrillion VND ($88 billion), significantly boosting economic activity.

Outstanding loans stood at 15.6 quadrillion VND ($654 billion) at the end of 2024, compared to 13.6 quadrillion VND ($570 billion) at the end of 2023, highlighting the high proportion of credit allocated to the economy.

The average deposit interest rate increased by 0.73% in 2024, while the average lending interest rate decreased by 0.59%. Notably, Vietnam's four largest banks (Big4) reduced their average lending rates by nearly 1% compared to the previous year.

Governor Nguyen Thi Hong emphasized that monetary policy has played a crucial role in achieving economic growth and controlling inflation, while ongoing reforms in the banking system aim to strengthen financial stability and resilience.

Tuan Nguyen