Vietnam State Bank Governor discusses monetary policy and capital access

State Bank of Vietnam Governor Pham Duc An addressed the National Assembly regarding monetary policy objectives, focusing on macroeconomic stability, inflation control, and supporting economic growth. Responding to concerns about the high ratio of short-term deposits, which account for approximately 80% of total system deposits, the Governor explained that these funds remain stable because citizens frequently roll over short-term deposits for long periods.

He noted that mobilizing short-term capital allows commercial banks to maintain lower costs, which helps reduce lending rates for the economy. The Governor emphasized that the high volume of deposits reflects public trust in the banking system. He added that as capital markets become more diverse and secure, the balance of investment channels will naturally evolve.

Regarding credit access, discussions highlighted the need for greater transparency to assist small and medium-sized enterprises (SMEs). Lawmakers and the Governor emphasized the importance of ensuring businesses can access capital with appropriate interest rates. The State Bank is currently working with SME associations to find solutions for reducing interest rates and improving credit accessibility.