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State Bank takes measures to curb inflation
Governor of the State Bank (SBV) of Vietnam Nguyen Van Giau told the National Assembly that SBV will focus on implementing four monetary measures to curb inflation.
The last cabinet member to be questioned at the on-going meeting on May 30, the governor said the most important measure for holding inflation was controlling the growth of credit and total means of payment this year to less than 30 percent compared to last year.
Other measures aim to flexibly control exchange rates and interest rates in line with the market principle and the supply – demand relation, increase the supervision of the monetary market and establish a swift information system to ensure the timely assessment of market developments in order to have appropriate intervention measures.
Additionally, the government plans to promote the inspection and supervision of the implementation of regulations on safety for banking activities of credit organisations.
According to the SBV, the implementation of measures to control price increases have initially helped curb inflation.
The total means of payment has increased 3.73 percent in the first five months of this year, compared to the 17.57 percent growth in the same period last year.
The growth of credit debt, which remains at a high level of over 18.4 percent, is beginning to reduce.
Giau said the bank should strictly implement the statistics, forecasts, and inspection and supervision work to ensure the monetary policy keeps pace with developments of the economy and high efficiency.
On the establishment of new banks, Giau said that since 2006, the SBV has received applications for 25 new domestic joint-stock commercial banks, and 33 branches of foreign banks and wholly foreign investment banks in Vietnam .
To date, the SBV has granted licences for the establishment of three branches of foreign banks, and two domestic banks, Lien Viet and Tien Phong.
By the end of May, the system of Vietnamese credit organisations comprises five State commercial banks, six joint venture banks, 36 joint stock commercial banks, 44 branches of foreign banks, 10 financial companies, 13 financial leasing companies and 998 people’s credit funds.
Governor Giau also answers questions on matters relating to interest rates for savings and loans, overdue debts and weaknesses in monetary management.
VNA
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