On January 13, 2022, the Governor of the State Bank of Vietnam (SBV) issued Directive No. 01/CT-NHNN requesting the whole banking sector to implement the key tasks in 2022. Accordingly, the SBV Governor has required 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 2022 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.
SBV Headquarters
The overall objectives and tasks of the banking sector in 2022
The overall objectives and tasks of the banking sector in 2022 are specified in the Directive as follows:
Managing 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 about 4% on average for 2022, contributing to maintaining the macro-economic stability, supporting the economic recovery, and adapting to the international and domestic market developments. In 2022, the credit growth is expected to reach about 14% and will be adjusted in accordance with the actual situation; Implementing synchronously the measures for foreign exchange management with a view to maintaining the stability of the forex and the gold markets, increasing the State foreign exchange reserves when the market conditions are favorable, gradually transforming into capital sources for production and business operations.
Implementing necessary measures for controlling the credit scale and growth, focusing credit on production and priority fields and areas in accordance with the Government's policy, supporting the socio-economic recovery and development; continuing to strictly control credit for potentially risky areas; continuing to implement synchronously the solutions to remove the difficulties for the COVID-affected people and enterprises.
Continuing to implement the solutions to restructure the credit institution system, especially those weak credit institutions, in accordance with the Scheme of Restructuring the System of Credit Institutions in association with the NPL resolution for the 2021-2025 period upon its approval; promoting the system of credit institutions which are operating healthily, effectively and transparently, meeting the international standards of banking operational safety in line with the applicable laws and the international practices; accelerating the implementation of the measures to resolve bad debts; controlling and limiting any newly arising bad debts; striving to maintain the NPL ratios in the balance sheets at a safe level (below 3%); controlling the acts of cross-investment, cross-ownership and manipulative and/or dominant possession at the related credit institutions; strengthening the inspection and supervision of the credit institutions' operations, especially in the areas with high potential risks.
Continuing to promote non-cash payments and digital transformation in the banking operations; improving the legal framework, mechanisms and policies on payments to create favorable conditions for the digital transformation in the banking sector; promoting non-cash payments, meeting the requirements for the new business models and new products and services based on the platforms of information technology, digital banking and digital payment; enhancing the security and safety in payment activities and digital transformation.
Continuing to improve the system of legal frameworks on banking operations in order to improve the effectiveness and efficiency of the state management, ensuring the discipline, the consistency and uniformity, in conformity with Vietnamese laws and the international commitments.
Strengthening the administrative reform, improving the business environment, creating favorable conditions for the people and enterprises; enhancing the capacity of the state officials and public employees, ensuring the administrative discipline.
Continuing to implement effectively 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.
Focusing on implementing the key tasks
Based on the above overal objectives and tasks, the SBV Governor has requested the SBV entities to proactively advise the Governor and implement the solutions in line with their functions and assigned tasks, focusing on the following activities: Continuing to improve the legal frameworks for the monetary and banking operations; Managing effectively the monetary, credit, foreign exchange and gold trading policies; Strengthening the banking inspection and supervision; Continuing to restructure the credit institutions in association with NPL resolution; Promoting non-cash payments and digital transformation in the banking operations; Ensuring the security and safety of information technology, electronic and card payments; Accelerating the administrative procedure reform; Promoting the discipline and integrity in the banking sector.
The Directive also clarifies a number of other key tasks of the banking sector, such as: Proactively regulating the cash circulation in a flexible manner in order to meet the payment demands of the economy; Fulfilling effectively the role and responsibilities as the representative for the State and the Government of Vietnam to promote the position and the voice of Vietnam and the SBV at the international and regional financial and monetary institutions, as well as at other international forums and platforms.
Enhancing the state management over the communication activities in the banking sector, generating a consistency and uniformity from the SBV headquarters to the SBV municipal and provincial branches, between the SBV and the credit institutions, the finance companies and the media agencies engaged in the banking industry; strictly implementing the regulations on information dissemination of the SBV.
Implementing the communication activities in a professional and effective manner; strengthening the policy communication, especially on new mechanisms and policies in order to create high public consensus and acceptance; implementing effectively financial education programs in order to implement the National Financial Inclusion Strategy and other Government’s Schemes aiming to enhance the people's access to banking services.
For the SBV municipal and provincial branches, the SBV Governor has requested these entities to ensure the full implementation of the SBV's monetary, credit and forex policies in their respective jurisdiction; enhancing the banking inspection and supervision; preventing and combating law violations in the banking sector; restructuring the credit institutions in association with NPL resolution; strengthening the management of the PCFs’ operations in their respective jurisdiction; promoting non-cash payments and digital transformation; ensuring the IT security for payment operations in their jurisdiction, etc.
For the credit institutions: the SBV Governor has requested these institutions to follow and implement the SBV's measures for monetary, credit and forex management; strictly complying with the SBV’s regulations and directions on the monetary, forex and banking operations; formulating and implementing business and financial plans for 2022 following closely the measures for the management of the monetary policy and the banking operations; continuing to drastically and effectively implement the measures for supporting the people and enterprises; extending credit safely and effectively, focusing on improving the credit quality; controlling and resolving NPLs; etc.
Effectively implementing the restructuring of the system of credit institutions in association with the NPL resolution; complying with the regulations on classification, provision and risk provision, limiting arising NPLs; enhancing the management and governance capabilities; strengthening the internal inspection and supervision to prevent the violations in the banking sector; enhancing the digital transformation and development of modern payment services; ensuring the security and safety of the information technology and payment systems, etc.
Le Hang