Implementing the Resolutions of the National Assembly and the Government on the socio-economic development plan for 2019, and improving the business environment and the national competitiveness, on January 8, 2019, the Governor of the State Bank of Vietnam (SBV) issued Directive No. 01/CT-NHNN requiring the whole banking sector to effectively implement the key tasks of the banking sector in 2019.
According to the Governor’s Directive, the overall goal of the banking sector in 2019 is to manage the monetary policy in a proactive, flexible, and prudent manner, in coordination with the fiscal and the macro-economic policies, in order to control the inflation in line with the set-out target of below 4% for 2019; maintaining the macro-economic stability, supporting the economic growth, stabilizing the money and forex markets. In 2019, the total liquidity is oriented to increase by 14%, with necessary adjustments in accordance with the actual situations.
Accelerating the implementation of the Restructuring of Credit Institutions System in association with NPL resolution by 2020, focusing on effectively handling with poor performing credit institutions; Strengthening the organization of the system of people's credit funds to ensure their operations in accordance with the principles and objectives, and to maintain the local socio-economic stability; Implementing drastically and effectively Resolution No.42/2017/QH14 of the National Assembly on pilot resolution of bad debts of credit institutions; stepping up NPL resolution in line with the market mechanism, controlling arising bad debts and debts with potential risks of turning into bad debts; Striving to bring the NPL ratio on the balance sheets to below 2%, and the NPL ratio and debts with potential risks of turning into bad debts to below 5%; Strengthening the inspection, supervision and strict control of the operations of the system of credit institutions, supporting the restructuring of credit institutions in association with NPL resolution.
At the same time, promoting the development of non-cash payments, gradually reducing cash payments in the economy; Building, completing and upgrading the national payment infrastructure, creating favorable conditions for deploying new payment products and services; Supervising the payment systems to ensure safe and efficient operations, strengthening the security and safety in electronic payments; applying security and payment standards in accordance with the international standards.
Promoting the reform of administrative procedures in the areas of banking operations in order to reduce the costs of compliance with the administrative procedures, facilitating the organizations and individuals in administrative transactions with the SBV and the credit institutions, contributing to improving the business environment in the monetary and banking sectors, improving the national competitiveness, promoting businesses in general and the credit institutions in particular to develop sustainably; Striving to improve the credit access ratio by at least one level in 2019.
The SBV Governor also requires the entities and units of the banking sector, on the basis of their functions and assigned tasks, to implement the tasks in this Directive, make monthly, quarterly and yearly reports and send to the SBV Office.
Le Hang