Prime minister Nguyen Xuan Phuc has asked the National Financial Supervisory Commission (NFS) to enhance the quality of analysis, assessment and forecast of macroeconomic developments and financial markets to complete its task of counselling the prime minister.
The PM made this request on his visit to NFS on the occasion of the 10th anniversary of the financial supervisory commission yesterday.
NFS was established in 2008 in the back of the global financial crisis which put Vietnam at risk of a macroeconomic crisis. It supported and provided advice and consultation to the prime minister in the co-ordination of the supervisory activities in the banking, securities and insurance areas, which are considered the lifeblood of the economy.
PM Phuc said the commission should focus on analysing and evaluating the situation, especially the potential risks of the financial markets, activities on the banking, securities, insurance and real estate sectors, to have timely and appropriate policy proposal, including risk-detecting tools and criteria for assessing the safety of the financial system in accordance with international standards and practices.
“I have heard that many countries in the region are employing early warning systems for the macroeconomy and financial markets which operate rather effectively. I suggest members study and report specific proposals to the prime minister,” PM Phuc said.
He emphasized the importance of the proactive spirit and timely advising on solutions to stabilise the financial and monetary system, restructure credit institutions in line with bad debt settlement, regularly update and analyse the international and domestic financial developments.
This was especially important in the context of unpredictable developments in the global and domestic economies, he said. “It’s too late to lock the stable door after the horse is stolen”, he added.
Closer collaboration
Financial and monetary markets needed to be reinforced, improved and made more efficient and safer, providing a solid foundation for rapid and sustainable development.
Thus, the prime minister said NFS should be more active in coordinating with relevant ministries, agencies, especially the State Bank of Vietnam (SBV) and the Ministry of Finance (MOF), to counsel and propose to the government and the prime minister policies on important issues in the economy and financial market supervision.
The prime minister assigned the commission in collaboration with relevant authorities to report and propose to the prime minister the coordinating mechanism among ministries and functional agencies in performing the function of general supervision and supervision of the financial market.
The commission should proactively cooperate with specialised supervisory ministries and agencies in reviewing, building and completing legal framework for financial and banking groups and the managing mechanism of these corporations.
Especially, it needed to focus on studying and proposing organisational models towards streamlining staff and becoming more effective. Phuc emphasized the excellence of human resources which will determine the counselling quality.
Truong Van Phuoc, acting chair of the National Financial Supervisory Commission, suggested the prime minister strengthen the legal status of the commission in order to facilitate its performance as it helps the commission have timely and sufficient access to database and objects under supervision in many aspects.
Phuoc also said the commission would soon apply and publish early warning models, scientific and practical forecasts, contributing to maintaining the confidence of the market, investors and depositors.
At the ceremony, on behalf of the Party and State leaders, prime minister Nguyen Xuan Phuc awarded the Third-class Labour Order to the commission.
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