In implementation of Resolution No. 77/2014/QH13 of the 13th National Assembly on socio- economic development plan in 2015 dated November 10, 2014 and Resolution No. 01/NQ-CP of the Government on key measures in execution of the socio-economic development plan and state budgeting in 2015 dated January 03, 2015, the Governor of the State Bank of Vietnam (SBV) requires the SBV entities, and credit institutions and foreign bank branches (hereafter called credit institutions) to satisfactorily implement the measures of monetary policy management and banking operations in 2015 in order to curb inflation, stabilize macro-economy, and support economic growth at a proper rate as follows :
I. OVERALL OBJECTIVES AND TASKS
1. To manage the monetary policy in a strict, prudent and flexible manner in close combination with the fiscal policy for the aim of controlling inflation target (below 5%), stabilizing macro-economy, supporting economic growth at a proper rate (6,2%), and ensuring liquidity of credit institutions and the economy, stabilizing interest rates, continuing to reduce lending interest rate by 1 – 1.5 percentage point p.a, and supporting financial market to mobilize capital for development investment.
In 2015, it is oriented to increase the liquidity growth rate by about 16-18% and credit growth rate by around 13 - 15% with proper adjustments based on the practical condition; stabilize forex and gold market and foreign exchange rate (with the band of 2%). To take synchronous measures of monetary and banking management in order to create favorable condition for enterprises, cooperatives and households to get access to bank loans for production and business; To create favorable condition for credit institutions to extent sufficient credit for the economy in a safe and effective manner; and to promote the subsidy lending programs for specific industries and economic fields such as agricultural and rural sector, exporters, supporting industries, small and medium enterprises, high-tech enterprises.
2. To take synchronous measures of institutional improvement and supervision to ensure prudent operations of credit institutions in line with law; and concentrate on resolving non performing loans (NPLs) in parallel with restructuring credit institutions for the orientation of obtaining NPL ratio of below 3% end 2015; to continue to decisively implement the Scheme on restructuring the banking sector for the period of 2011 – 2015 with the determination of fulfilling all substances of the Scheme.
II. FOR THE ENTITIES AT THE SBV HEAD OFFICE
They have to provide advice to the Governor and to proactively implement solutions under their jurisdiction and tasks, with a focus on the following key tasks:
1. To review and promptly promulgate the documents under their jurisdiction in line with legal document formulation plan of the SBV to guide the implementation of Law, Ordinance, Decree on banking operations in order to create a consistent and comprehensive legal framework for monetary policy regulation, restructuring credit institutions, NPL resolution and ensuring the safe and sound banking operations. To continue to review and promptly promulgate the documents in accordance with amended substances of Constitution 2013, the Law on enterprises, the Law on public investment, the Law on land, and the Law on investment.
2. To closely watch the macro-economic and monetary movements to proactively manage monetary policy instruments in order to stabilize money market, manage credit and total liquidity growth and support economic development and the priority sectors in line with the set orientation of the Government, as follows:
a) To flexibly regulate the open market operations (OMOs) with the proper quantity and interest rates in accordance with the liquidity condition of credit institutions and the monetary policy objectives.
b) To make refinancing with the reasonable quantity, interest rates and maturities vis-as-vis credit institutions to support liquidity and lending programs approved by the Government and support the resolution of NPLs.
c) To manage the interest rates in line with the macro-economic and monetary objectives and the objectives of stabilizing money market.
d) To manage foreign exchange rates in a proactive and flexible manner to regulate market performance, stabilize value of the domestic currency and increase the state international reserve.
3. To manage the flexible credit solutions toward increasing credit extension in combination with controlling credit quality and safety, ensuring sufficient capital provision for the economy, creating favorable condition for customer to get access to bank loans.
a) To plan and implement flexible credit solutions in accordance with the targeted credit growth rate of 13 – 15% in 2015 focusing capital on specific industries and economic fields in line with capital mobilizing ability of credit institutions and controlling credit quality and NPL ratio. To continue to allocate the annual credit growth rate for CIs on the basis of assessment of financial and credit extension capability.
b) To continue taking measures to assist credit institutions to increase credit extension effectively; to shift credit structure towards focusing prioritized capital resources for the agricultural and rural sector, exporters, supporting industries, small and medium enterprises, high-tech enterprises; to strictly control foreign exchange loans in line with the Government’s policy to restrict dollarization in the economy, thus contributing to stabilizing the exchange rate and the foreign exchange market.
c) To take all practical and effective measures to overcome difficulties in lending relation between credit institutions and customers and create favorable conditions for customer to get access to bank loans for production and business development. To continue accelerating the program of connection between commercial banks and enterprises, local authorities at all levels, the program of price stability.
d) To work closely with the relevant ministries and agencies in promulgation of lending policies and scheme for specific industries and economic fields in accordance with the guidance of the Government to promptly resolve difficulties and problems in terms of lending mechanism, as follows:
- To provide advice to the Government to revise Degree No.41/2010/NĐ-CP on credit policy for rural and agricultural development; To urgently complete circulars to guide the implementation of the revised Degree to create an effective legal framework in service of rural and agricultural development and the Scheme of agricultural restructure under the Government approval.
- To closely watch and access the implementation of the pilot lending pattern for agricultural development under the Resolution No 14/NQ-CP in order to promulgate legal regulations and scheme for the implementation of the program;
- To proactively cooperate with relevant ministries and local authorities to complete regulations on establishment, organization and operation of credit guarantee fund for SMEs promulgated in Decision No.58/2013/QĐ-TTg dated November 15, 2013 of Prime Minister.
- To work closely with the relevant ministries and insurance agencies to complete insurance scheme and policy for agricultural field to contribute to expanding loans for rural and agricultural development.
- To review and promptly promulgate credit policy applicable to poor households and other policy beneficiaries; to meeting sufficient capital and create favorable condition for Vietnam Bank for Social Policies operating effectively.
- To watch closely to promptly resolve difficulties and obstacles in the implementation of several credit programs such as: Credit policy vis-à-vis shrimp and catfish rearing under Decision No. 540/QD-TTg dated April 16, 2014 ; Subsidy loan policy vis-à-vis home purchasers in line with; Credit supportive policy to mitigate losses in the post – harvest seasons of agricultural products in Decision No.68/2013/QD-TTg; the policy vis-a-vis livestock and fishery culture in accordance with Document No.1149/TTg-KTN dated August 8, 2012; resolving difficulties and problems in terms of lending mechanism for specific industries and economic fields; redressing obstacles and constraints of the policy credit in order to create favorable condition for the Vietnam Bank for Social Policies operating effectively, increasing credit extension and implementing effective lending to poor households and other policy beneficiaries.
4. To carry out synchronous measures to manage exchange market in order to stabilize foreign exchange rate, improve the international balance of payment and to meet sufficiently the demand of foreign currencies for economic development; to increase the state forex reserve and reduce dollarization, and improve VND position in the international market.
5. To proactively coordinate with ministries and agencies to implement Degree No.24/2012/NĐ-CP dated April 03, 2012 effectively; to ensure consistent and severe management of the gold bullion, jewelry and material market toward preventing and eliminating “goldization” and gold bullion trading for the aim of expanding jewelry market to serve domestic demand and export.
6. To enhance supervision, inspection and mornitoring money market and banking operations with focus on supervision of credit quality, restructuring credit institutions and NPL resolution; To decisively innovate the supervision performance in order to strictly control the operational quality of credit institutions; To take severe and timely actions against all violations and risks for the aim of maintaining a prudent banking and credit institution system and supporting the restructuring credit institutions and NPL resolution; To actively conduct the scheme of the off - site supervision in accordance with the international standards; To carry out pilot pattern of rating credit institutions in line with the international regulations. To implement pilot scheme of Basel II compliance for 10 credit institutions. In 2015, the National center of credit information of Vietnam will complete the scheme of rating and credit history recording for individual clients of the whole banking sector; To conduct pilot pattern of the combination of the copliance supervision with risk – based supervision in certain credit institutions.
7. To synchronously implement the solutions to restructure the banking industry and NPL resolution in line with the set objectives of Scheme of restructuring the credit institutions in the 2011-2015 period under Decision No.254/QD-TTg dated March 1, 2012, the Scheme of NPL resolution, VAMC establishment under the Decision 843/QĐ-TTg dated May 31, 2013 of Prime Minister toward fulfilling the set objectives and obtaining NPL ratio of below 3% in the end of 2015; To focus on resolving difficulties and obstacles of legal regulations and financial mechanism for performance of the Vietnam Asset Management Company (VAMC) to build up an effective channel to resolve NPLs.
8. To flexibly harmonize the cash in circulation to meet sufficiently the demand of the economy and the cash reservation for issuance; To accelerate the examination of issuing and vaulting work in order to strictly manage professional procedures and increase quality and security of treasury vault; to conduct consistent measures to improve quality and confidence of Vietnam currency in circulation; To make research on and apply a common model of cash management and circulation for the SBV municipal branches as well as for the whole SBV system.
9. To improve the quality of statistics and forecast in service of formulation and management of the monetary policy specifically: to guide credit institutions to strictly comply with the accounting and reporting regime promulgated in Circular No.31/2013/TT-NHNN dated November 13, 2013 of the SBV Governor; to well organize the effective system of information and data collection for the more accurate and timely data consolidation. To work closely with the relevant ministries and agencies to improve the quality of formulating, analyzing and forecasting the balance of international payment in service of the management of the monetary policy and exchange rate. To closely watch the movements of macro-economy and the domestic and international monetary and financial markets for timely updating and proactive forecasting macro-economic condition and movement of monetary indicators to come up with the timely measures of managing the monetary policy and banking operations. To work closely with the relevant ministries such as Ministry of Planning and Investment, Ministry of Finance, Ministry of Industry and trade to study, recommend, implement, and supervise and access macroeconomic policies.
10. To well perform the function of the representative of Vietnamese Government at the international financial institution; To enhance information exchange with international organizations, bilateral partners and central banks/monetary agencies to improve the process of formulating the monetary policy; To enhance cooperation with other central banks/monetary agencies and international organizations and to seek opportunities to improve bilateral cooperation relations in the banking sector. To proactively coordinate with the relevant ministries and agencies to implement the instruction of the Prime Minister on finalizing negotiation and carrying out FATCA in Vietnam; To establish and participate in Asian Infrastructure Investment bank (AIIB) and to effeciently utilize technical assistance and programs financed by WB, ADB, IMF and other development partners.
11. To improve the development strategy of the banking sector until the year 2020 and towards 2030. To strengthen scientific research projects in the direction of improving the quality and application in the banking sector.
12. To continue the decisive and effective implementation of the Non-Cash Payment Plan in Vietnam in the 2011-2015 period as approved by the Prime Minister in Decision No.2453/QD-TTg dated December 27, 2011 with a focus on developing card payment via POS; to conduct pilot patterns for non-cash payment in the rural areas; to coordinate with the Ministry of Finance to formulate and implement the Scheme of corporate card. To closely monitor for ensuring safe and smooth operations of payment systems; To implement effectively the Strategy of Supervision of payment systems period 2014 – 2020; to buil up the National Switching Join stock company after mergering of Smartlink and BanknetVN; To make study and establish clearing center to accelerate non – cash payment and banking services. To conduct a study of Management and restructure of ATM system, and to access practical operations of payment system and payment demand of the economy in short and long term in order to set up plan and strategy for payment system development in the next stage.
13. To continue renovating technology and developing the IT infrastructure towards centralization; to accelerate computerization in public administration service provision. To implement a new information reporting system in order to develop the centralized data base in service of monetary policy management and off-side supervision of the SBV. To continue enhancing the efficiency of IT and administrative management in the banking sector, ensuring the safety and security of online banking information. To well operate the inter-bank electronic payment system. To implement the FSMIMS Project in a timely and effective manner to ensure that all the objectives are met as committed to donors.
14. To focus on implementing Action Plan following Financial Sector Assessment in order to gradually develop the financial stabilizing function of the SBV and and to conduct prudent macroeconomic policy, and create framework of financial stability report.
15. To enhance information and communication on the policies and solutions of monetary policy management and banking operations by renovating the communication method and improving the communication strategy. To provide adequate and timely information and data on policy mechanism, guidance of National Assembly, Government and the SBV about monetary and banking operations and operational results of the banking sector. To actively provide information and closely coordinate with mass media to promote information and communication of the management policies, and promptly handle inaccurate information related to banking operations. To ensure the form of unified communication network from the central government to locations, among the SBV and credit institutions.
16. To effectively implement the tasks assigned in the Resolutions of the 13th National Assembly’s 7th and 8th sessions and to make good preparations for the 9th and 10th sessions of National Assembly. To make adequate reports on monetary and banking issues and other relevant matters to the National Assembly, the NA delegations and deputies. To instruct the SBV branches of provinces and the cities directly under the central government to coordinate with branches of credit institutions in their locations to strictly implement cooperation programs with NA delegations, Fatherland Front and Commission for Mass Mobilisation.
17. To complete the administrative reform plan of the SBV in the 2012-2015 period with a focus on the institutional and structural reform, staffing and administrative reforms. To implement the civil service reform plan of the SBV in 2013-2015 period. To improve the quality of internal control and audit of the SBV in order to discover and prevent all errors and ensure safe and sound operations of the SBV; to manage and safely use fixed assets and capital of the SBV; to promptly implement requirements after the auditing in line with laws, ensuring safe and sound SBV’s operations.
III. For SBV branches of provinces and the cities directly under the central government
1. To proactively guide the credit institutions in their locations to implement all monetary, credit and banking solutions of the SBV, to support socio-economic development of their locations in line with the advisory functions to assist the SBV Governor to execute the state management of monetary and banking operations in provinces and the cities directly under the central government.
2. To proactively follow the movements of socio-economic development and banking operations to be reported to the local governments and the SBV Governor together with the recommendations of the measures to manage operations and networks of credit institutions and revision of mechanisms and policies in line with the practical condition; to enhance the exchange of information with entities of the SBV head office.
3. To take the lead in working with credit institutions and enterprises in their locations to remove difficulties, obstacles of credit operations and handling measures between credit institutions and customers. To actively tackle obstacles and recommendations from credit institutions and their customers; to proactively advise the local leaders and authorities in coordinating with the SBV branches of provinces and the cities directly under the central government to enhance the implementation of programs on connecting commercial banks and enterprises, and the measures of supporting banking operations safely and effectively.
4. To formulate and implement the inspection and supervision programs in accordance with Supervision Plan for 2015 of the SBV; to enhance supervision and strictly handle violations in the compliance with the SBV regulations on monetary and banking operations, to reschedule and resolve NPLs; to strengthen supervision for the People’s Credit Funds. To enhance the supervision of the compliance with statistical reporting regime of credit institutions in their locations in order to improve the quality of statistical reports sent to the SBV
5. To proactively provide information to mass media and disseminate regulations and directives of the Government and SBV’s directions on monetary and banking operations, operational results of the banking sector and credit institutions in their locations in order to gain high consensus of the local authorities, enterprises and the public to acknowledge and comply with managing measures of the SBV.
6. To continue renovating and improving the quality of the tasks related to the National Assembly in their locations, regularly report to the NA delegations the results in monetary and banking operations in their locations, especially before the NA sessions. To actively participate in dialogues with the public in order to directly report and explain all the complaints related to the solutions of monetary and banking operations; to periodically or unexpectedly report the result of the tasks related to the National Assembly in their locations, closely coordinate with SBV entities and credit institutions in their locations to well perform cooperation program with NA delegations, Fatherland Front and Mass Mobilization.
IV. FOR CREDIT INSTITUTIONS
1. To formulate and implement the 2015 operational plans in line with the solutions of monetary policy, credit and banking management of the Government and the SBV. To direct their branches to strictly comply with the instructions of the SBV branches of provinces and the cities directly under the central government.
2. To take effective measures to extend credit at a proper level to contribute to economic growth, inflation control, facilitating for production and business, in particular:
a) To control credit growth rate in line with the maximum credit growth target and credit control measures set by the SBV; to prioritize credit extension to the agricultural sector, exporters, supporting industries, small and medium enterprises, high-tech enterprises; to extend a proper amount of resources to the Scheme on restructuring the agricultural sector which was approved by the Prime Minister, key projects, efficient projects and key sectors …thereby contributing to the socio- economic development.
b) To implement credit policies and programs in line with the guidance of the Government and the Prime Minister, namely the credit policy vis-à-vis offshore fishing in line with Resolution No.67/2014/NQ – CP; the credit policy vis-à-vis husbandry and fishery culture in Document No. 1149/TTg-KTN… and other credit policies and programs under the guidance of the Government and the Prime Minister. To promptly report to the SBV difficulties and arising obstacles for timely resolution.
c) To continue taking decisive measures to ease difficulties in the credit relations between credit institutions and clients to facilitate clients to get access to bank loans in line with law, including rescheduling the loans, exempt or reduce interest rates on the basis of the financial capacity of credit institutions and the guidance of the SBV; to simplify administrative procedures for lending. In case of arising difficulties and problems in terms of mechanism and policy, they should be reported to the SBV for timely resolution.
3. For the mobilizing and loan interest rates :
a) To strictly implement the regulations and guidance of the SBV on interest rates; to charge the proper loan interest rates based on the mobilizing rates and risky levels of the loans; to share difficulties with borrowers while ensuring financial safety for operations of credit institutions. To strive reducing lending interest rate for medium and long term loans by 1 -1.5 percentage point p.a.
b) It is not allowed to charge the costs related to loans, excluding the fees and charges already stipulated in Circular 05/2011/TT-NHNN of the SBV Governor dated March 10, 2011 on loan fees charged to the borrowers. To apply proper fees in accordance with the applicable legal texts in order to share difficulties with borrowers; and to publicize fees in line with the applicable regulations.
c) To regularly monitor the implementation of the SBV regulations on the mobilizing and loan interest rates, to promptly discover all the violations for proper resolution based on the clarified responsibilities between institutions and individuals. Credit institutions in violation of the interest rate regulations will be punished in line with law.
4. To strictly comply with the SBV regulations and other legal regulations on foreign exchange trading, exchange rate quotation, and management of foreign exchange; and to strictly implement the SBV regulations and other legal texts on management of gold bullion trading.
5. To continue improving the organizational model, managerial efficiency, supervisory system and internal audit to mitigate risks and law violation. To improve the financial capacity, asset quality, and liquidity; to actively restructure assets and financial resources towards narrowing the gap of the maturities between the mobilizing and utilizing resources. To strictly comply with the SBV regulations on monetary, and banking operations.
6. To proactively implement scheme on NPLs resolution; to promptly report the SBV difficulties and obstacles, and recommend measures of resolving NPLs.
7. To focus on resolving NPLs, especially selling NPLs to the VAMC, to utilize provisions and resolve mortgaged assets in order to obtain the NPLs ratio of below 3% in 2015
8. To provide adequate, timely and accurate information of operations in line with law and the SBV regulations; to promptly report all difficulties and problems to the SBV head office and the SBV branches of provinces and the cities directly under the central government. To effectively implement information system for compliance with statistical reporting system of the SBV as stipulated in Circular No.31/2013/TT-NHNN.
9. To proactively provide information to the mass media on the implementation of the solutions of monetary policy management, banking operations and performance to obtain consensus and support of the public for banking operations. To enhance information and communication in order to help the public easily get access to banking products and services.
10. To coordinate with the SBV head office and SBV municipal and provincial branches to report monetary and banking operations, to participate in dialogues with the public in order to resolve difficulties and obstacles related to monetary and banking operations, thereby contributing to developing socio-economy.
V. IMPLEMENTATION
1. This Directive took effect on the date of signing.
2. SBV entities at the headquarter and SBV municipal and provincial branches are responsible for pushing ahead the implementation of the tasks in this Directive, and reporting the implementation results monthly and quarterly to the SBV Office.
3. The SBV Office takes the lead in coordinating with the SBV entities to monitor the implementation of this Directive to be consolidated in the monthly and quarterly reports to the SBV Governor and the Ministry of Planning and Investment before 20th of every month and quarter end in line with the guidance of the Government in its Resolution 01.
4. The Director General of the SBV Office, the Director General of the Monetary Policy Department, chiefs of the SBV entities, Directors General of the SBV branches of provinces and the cities directly under the central government, Chairmen of the Boards of Directors and General Directors (Directors) of credit institutions and foreign bank branches are responsible for implementing this Directive.
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