Prime Minister Nguyen Tan Dung has told the banking industry to continue the tight but flexible monetary policy, which in 2008 helped control inflation, maintain economic growth and ensure social welfares, to combat recession in 2009.

The Government leader gave the guidance at a meeting held by the State Bank of Vietnam (SBV) in Hanoi on December 30. He said the industry should focus on ensuring capital for production and exports, especially agricultural production and rural development, and stimulating investment and consumption.

He asked the industry to intensify inspection to ensure transparent operations, improve credit quality and upgrade management capacity, focusing on resolving increasing bad debts.

“The banking sector should speed up the legal upgrading process, especially the making of laws on the State Bank of Vietnam, credit institutions, saving deposits insurances and banking operations supervision in an effort to create a legal framework for the sector to develop,” Dung emphasised.

He went on by requiring the industry to speed up administrative reforms, modernise its technical infrastructure and strictly supervise the credit quality.

In response, SBV Governor Nguyen Van Giau promised to implement all the measures simultaneously to contribute to preventing economic slowdown, maintaining economic growth and ensuring social welfares. (VNA)