On January 15, 2024, the Governor of the State Bank of Vietnam (SBV) issued Directive No. 01/CT-NHNN on the implementation of the key tasks of the banking industry in 2024.
Accordingly, the SBV Governor has directed all of the SBV entities, the credit institutions and the foreign bank branches to implement the measures for the effective management of the monetary policy and the banking operations in 2024 in order to control the inflation, contributing to maintaining the macro-economic stability, supporting the economic recovery, and ensuring safe and sustainable development of the system of credit institutions.
The overall objectives and tasks of the banking sector in 2024 are specified in the Directive as follows:
First, managing the monetary policy in a proactive, flexible, and prudent manner, in coordination with the fiscal and the macro-economic policies, contributing to promoting the economic growth, maintaining the macro-economic stability, controlling the target average inflation in 2024 at 4 to 4.5%, maintaining the stability of the money and the forex markets, and the banking system.
Second, managing credit in harmony with the macro-economic developments to contribute to supporting the economic growth, controlling the inflation, maintaining the macro-economic stability, ensuring safe and sound banking operations; managing the credit growth of the whole banking system in 2024 at about 15% with appropriate adjustments in accordance with the actual situations.
Third, strictly implementing the Scheme of Restructuring the System of Credit Institutions in association with the NPL resolution for the 2021-2025 period, contributing to developing the system of credit institutions healthily, transparently and effectively, meeting the international standards and practices.
Directing the credit institutions to promote the handling and recovery of bad debts; improving the credit quality, preventing and limiting arising bad debts.
Fourth, focusing on revising and improving the mechanisms, policies and regulations on the organization and operations of banking inspection and supervision; enhancing the innovations, improving the effectiveness and efficiency of the banking inspection and supervision, focusing on the inspection and supervision over potentially risky areas to prevent, detect and strictly handle with any risks, shortcomings and violations at the credit institutions, contributing to ensuring the security and discipline in the money and banking markets.
Fifth, effectively implementing the plan for digital transformation in the banking sector by 2025, with vision to 2030; the Scheme on Cashless Payment Promotion in Vietnam for the 2021-2025 Period; the IT Development Strategy in the banking sector by 2025, with vision to 2030; continuing to implement the solutions to promote non-cash payment, digital banking, and ensure the security and safety in banking operations.
Sixth, strengthening the compliance and market discipline in conformity with the policies of the Government and the Prime Minister, the SBV Governor’s directions, as well as the regulations on banking operations.
Seventh, strongly reforming the regulations, the administrative procedures, improving the business environment, creating favorable conditions for the people and businesses to access banking services; improving the qualifications of the leaders, officials, civil servants and employees in the banking sector, ensuring the compliance and administrative discipline.
Eighth, continuing to implement and effectively monitor the implementation of the Development Strategy of Vietnam Banking Sector to 2025, with Vision to 2030; the National Financial Inclusion Strategy to 2025, with Vision to 2030; as well as the other sectoral Programs/Action Plans and Schemes which have been enacted.
Le Hang