Banking sector to support firms

6/7/16


The banking sector will apply comprehensive monetary policies and banking operations to improve credit access, focusing on enhancing national credit ratings, according to the State Bank of Vietnam (SBV).
SBV Governor, Le Minh Hung, made the statement as part of Decision No 1355/QD-NHNN, dated June 28, while issuing a directive to kick-start an action plan to support the domestic business environment and national competitiveness with a vision towards 2020.
The decision said banking services must be improved in terms of availability and transparency, so that enterprises and individuals from every economic sector have equal access to bank loans.
Procedures must be simplified and costs must be cut for transactions between credit institutions and their customers, it said.
To enhance national credit ratings, Hung said the SBV would operate monetary policies flexibly in tight conjunction with fiscal and other macro-economic policies.
This will help control inflation, stabilise the economy and ensure the operational security of credit institutions, besides supporting national foreign reserves and facilitating production and business activities.
The central bank will also closely monitor developments in the gold and foreign exchange markets and intensify co-ordination with the relevant agencies to guarantee financial stability.
For improved availability of banking services, Hung said the banking sector would continue to complete the legal framework for payment activities, upgrade the infrastructure and technology and enhance the efficiency of inter-bank payment networks.
Banking authorities will create regulations for commercial banks to provide derivatives, reducing the risk for enterprises using the banks’ products.
They will encourage more cooperation with international financial organisations to help low-income individuals and small- and medium-sized enterprises (SMEs) acquire loans more easily.
Local credit institutions must strengthen their financial capacity and renew their management methods to meet Basel II, a set of international banking regulations set forth by the Basel Committee on Banking Supervision.
Banking authorities are expected to promptly design a plan for the continuing re-organisation of credit institutions between now and 2020 to create a future banking system with multiple functions, secure operations and sustained efficiency.
They were also urged to build schemes to develop a system of credit funds and complete a legal framework for the development of micro-finance institutions.
They must work to gradually form a market for debt trading, helping maintain national bad debt ratios at below 3 percent of the overall outstanding loans.
Hung asked credit institutions to continue to extend loans in prioritised areas, including agriculture and rural development, exports, support industries and SMEs, as well as start-ups and hi-tech businesses.
Programmes connecting banks and businesses and measures supporting struggling firms are to be promoted, he said./.


Chia sẻ bài viết ^^
Other post

All comments [ 10 ]


LawrenceSamuels 6/7/16 08:53

Monetary policies from now until the year end must give top priority to ensuring the safety of the banking system and controlling inflation while still trying to support businesses.

For A Peace World 6/7/16 08:54

relevant agencies must closely monitor the movements of the macro economy, the monetary market and operations of credit institutions to take flexible measures aimed at assisting the liquidity and capital sources for credit institutions.

Socialist Society 6/7/16 08:55

The agencies must at the same time ensure the Government’s target to control inflation under 5 per cent this year is not jeopardised.

Me Too! 6/7/16 08:56

Credit institutions must balance their capital mobilisation sources and lending to ensure liquidity.

Vietnam Love 6/7/16 08:57

To continue on a strong GDP growth trajectory, the country should work to raise its labor productivity.

Voice of people 6/7/16 08:58

The exposure of companies and investors to different economic growth outcomes clearly depends on whether they are active primarily in the domestic or export market.

John Smith 6/7/16 08:59

Domestically oriented companies, such as those in the financial-services or retail sectors, are much more threatened by slower growth in Vietnam than are companies that use the country as an export base for manufactured goods.

Gentle Moon 6/7/16 09:00

More limited access to capital and increasing competition mean that state-owned enterprises must lift their productivity before circumstances force their hand.

Red Star 6/7/16 09:01

We think Vietnam can act decisively to head off short-term risks and embrace a productivity-led agenda.

yobro yobro 6/7/16 09:02

If the country does so, it can build on its many intrinsic strengths—a young labor force, abundant natural resources, and political stability, to name a few—to create a second wave of growth and prosperity. There are challenges, to be sure, but we believe that they can be overcome.

Your comments