Vietnamese lenders must meet banking and safety standards and adopt international practices, Hue said, noting that Vietnam is eyeing to enter the top four ASEAN countries in banking development by 2025. He also emphasised that attention must be paid to formulating, approving and implementing a project on restructuring poor-performing banks with an aim of completing the project by the end of 2025.
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State Bank Governor Nguyen Thi Hong at the Q&A session |
Hue asked the Government, the State Bank of Vietnam (SBV) and ministries to actively, flexibly and comprehensively employ monetary tools and policies; and combine them with fiscal and macro-economic policies to keep inflation under control, stabilize the macro-economy, support economic recovery and promptly respond to fluctuations in both the international and local markets.
The top legislator also required the lenders to reduce operation costs and lower interest rates while regulators must revise and amend related legal documents to improve legal framework on monetary issues, foreign exchange governance and banking operation, thus ensuring the safety of the credit institutions.
It is critical to raise financial capacity of the lenders, provide additional charter capital for state-owned banks and prevent cross-investment, cross-ownership and ownership manipulation, he said.
The N.A. chairman also requested the SBV to intensify inspection and supervision of the credit institutions, study the use of cryptocurrency, promote financial technologies (fintech) in banking and ensure information security for the banking system.
He further suggested the development and amendment of regulations relating to sales and purchases of corporate bonds, saying there must be stricter requirements on lenders' management standards when operating on the corporate bond market to create a healthy financial market.
He also required that regulators must keep a close watch on credit growth in high-risk areas, such as real estate, securities and corporate bonds and strengthen governance of digital banking services to promptly detect violations.
Source: VNA