The Governor of the State Bank of Vietnam (SBV) has just issued Directive No. 01/CT-NHNN on organising key tasks and solutions of the banking sector in 2019.
Accordingly, the overall objective of the banking sector in 2019 is to regulate proactively, flexibly and prudently monetary policies, harmoniously coordinated with fiscal policies and other macroeconomic policies to curb average inflation below four percent; maintaining macroeconomic stability, supporting economic growth, stabilising the money and foreign exchange market. In 2019, the orientation of total payment means increased by 14 percent, which was adjusted in accordance with the actual situations.
Along with that, the industry has accelerated the implementation of the project of Restructuring the system of credit institutions associated with bad debt handling by 2020; focusing on effectively handling weak credit institutions; strengthening consolidation and reorganisation of the system of people’s credit funds in order to ensure operation in accordance with the principles and objectives and maintain the socio-economic stability in the locality; drastically and effectively implementing the Resolution No. 42/2017/QH14 of the National Assembly on piloting the handling of bad debts of credit institutions; stepping up bad debt handling under the market mechanism, controlling newly arising bad debts and potential bad debts.
The directive also mention clearly the task to strive to bring the on-blancesheet bad debt ratio to below two percent; non-performing loan (NPL) ratio including potential bad debts (bad debts sold to VAMC not yet processed, and rescheduled debts and other potential bad debts) to less than five percent; strengthen inspection, supervision, strictly control of the operation of the system of credit institutions, support restructuring of credit institutions associated with handling bad debts.
At the same time, the sector promotes the development of non-cash payments, gradually reducing cash payments in the economy; build, improve and upgrade national payment infrastructure, create conditions to deploy new payment products and services; supervise payment systems to ensure safe and efficient operation, strengthen security and safety in electronic payment; apply security and payment standards according to international standards.
In addition, the banking sector has accelerated the reform of administrative procedures in the areas of activities to reduce costs of complying with administrative procedures, facilitating organisations and individuals conducting administrative transactions with SBV and transactions with credit institutions improving the business environment in the monetary and banking sectors, improving national competitiveness, promoting businesses in general and credit institutions in particularly for sustainable development, striving to improve the Credit Access Index by at least one rank on the ranking board in 2019.
The SBV Governor requires banks to base on the functions and tasks assigned to carry out the tasks in this Directive, report on the implementation of the monthly, quarterly, and annually to SBV.
