Credit institutions to be developed in banking activities for Vietnam to become top 4 leading countries in ASEAN?
What is the direction to develop credit institutions in banking activities in Vietnam?
According to subsection 2.3, Section 2, Resolution 62/2022/QH15 directing the banking sector as follows:
- Actively, flexibly and synchronously operate monetary policy tools, harmoniously and closely coordinate with fiscal policy and other macroeconomic policies to control inflation and stabilize the macroeconomy, support socio-economic recovery and development, and timely adapt to developments of domestic and international markets.
- Drastically implement Resolution No. 43/2022/QH15 of the National Assembly on fiscal and monetary policies to support the program of socio-economic recovery and development, Resolution No. 11/NQ-CP of the Government on monetary and fiscal policies to support economic recovery, Decree No. 31/2022/ND-CP on interest rate support from the state budget for loans from enterprises, cooperatives and business households .
- Direct credit institutions continue to reduce costs and strive to lower lending interest rates according to Resolution No. 43/2022/QH15.
- Continue to review, amend and complete the legal framework and organize the effective implementation of monetary policy, foreign exchange, gold trading and banking activities, including laws such as: The Law on Credit Institutions, the Law on Deposit Insurance, the Law on the State Bank of Vietnam, the Law on Anti-Money Laundering and related documents, contributing to ensuring the safe operation of the system of credit institutions. .
- Organize the drastic implementation of the Scheme on restructuring the system of credit institutions in association with bad debt settlement in the 2021-2025 period.
- Develop a system of credit institutions operating in a healthy, quality, efficient, public and transparent manner, meeting the safety standards in banking activities in accordance with the law and international standards, and attempt to reach the development level of Top 4 leading countries in the ASEAN region.
+ Focus on developing, approving and implementing projects on restructuring weak banks, by 2025, basically dealing with weak banks and credit institutions, especially not allowing banks to arise new weaknesses.
+ Improve the financial capacity of credit institutions, especially to increase the charter capital for state-owned commercial banks and commercial banks dominated by state capital; prevent cross-investment, cross-ownership and manipulative and dominant ownership in credit institutions.
+ Strengthen capacity and effectiveness of inspection and supervision of activities of credit institutions, specialized inspection for high-risk potential areas.
+ Research into the application of digital money, a controlled testing mechanism to promote financial technology (fintech) applications in banking activities.
- Continue to promote the implementation of Resolution No. 42/2017/QH14 of the National Assembly on handling bad debts, take drastic measures to recover debts, use provisions to handle risks, and improve credit quality. use, prevent and minimize new bad debts; study and perfect the legal system on bad debt handling to apply when Resolution No. 42/2017/QH14 expires.
+ Strive to the end of 2025, reduce bad debt of the whole system (excluding weak commercial banks) to less than 3%, including bad debts on the balance sheet, bad debts sold to limited liability companies a member of the asset management of Vietnamese credit institutions (VAMC) has not been resolved, recovered and the potential debt becomes bad debt.
+ Develop criteria and methods to determine credit growth targets for each credit institution on the basis of each credit institution's operating situation, financial capacity, management and ability to expand credit. credit institutions, ensuring consistency, publicity, transparency, in accordance with the law, in accordance with Basel II standards and international standards in the banking sector.
+ Research to limit and proceed to eliminate the management and allocation of credit growth targets for each credit institution.
+ Plan to expand the scale and increase the proportion of income from non-credit banking services in the total income of commercial banks.
Credit institutions to be developed in banking activities for Vietnam to become top 4 leading countries in ASEAN?
What are the amending regulations on credit institutions and implementing financial decisions in Vietnam?
According to subsection 2.3, Section 2, Resolution 62/2022/QH15 directing the banking sector as follows:
- Review and amend regulations on credit institutions offering, invest and provide services on individual corporate bonds, ensure strictness, efficiency, and risk reduction; at the same time, improve the requirements and standards of governance and risk management of credit institutions when participating in the corporate bond market, contributing to ensuring the safety of banking operations and developing the market of corporate bonds in particular and the financial market in general .
- Closely monitor loan balance growth and credit quality in potential high-risk areas, especially real estate investment and trading, securities and individual corporate bonds; at the same time, ensure the supply of capital for the healthy and sustainable development of the stock market and real estate.
- Drastically implement the National Comprehensive Financial Strategy to 2025 with orientation to 2030; continue to improve the legal framework, implement solutions to promote financial inclusion, and develop safe and effective microfinance institutions.
+ Direct credit institutions to concentrate capital sources, promptly respond to loan needs, promote digital transformation, apply science and technology, develop lending services, online payment, and pay bills. simplifying the loan process and procedures, creating conditions for people and businesses to easily access credit sources with appropriate interest rates, serving production and business activities and the needs of life and consumption. legitimacy, contributing to limiting and gradually eliminating "black credit".
+ Promote the development of non-cash payment, create conditions for credit institutions to develop safe and effective lending products.
Technical solutions to be applied in information systems for banking applications in Vietnam?
According to subsection 2.3, Section 2, Resolution 62/2022/QH15 directing the banking sector as follows:
- Research, deploy and apply technical solutions to enhance information security assurance for information systems applying banking operations.
- Strengthen management and supervision of e-banking service provision and coordinate with law enforcement agencies to detect and promptly handle related violations.
- Coordinate, exploit and use information on the Vietnam National Database on population and information on chip-based citizen identification cards in managing the account system at credit institutions, limiting behavior fraud, impersonation, forgery of identity papers when performing e-banking transactions; effectively fight and prevent high-tech crimes in the banking sector, the purchase and sale of bank accounts in cyberspace.
Resolution 62/2022/QH15 takes effect from July 31, 2022.
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