SBV mission works with banking system in Region 5

Efforts to streamline the organizational structure

In his opening speech at the working session, Deputy Governor Doan Thai Son stated that over the past three months, the SBV, along with the entire political system, had made efforts to restructure and streamline the organizational system, not only at the central bank’s level but also with the provincial branches. This marks a significant milestone in the major transformation of the SBV. In particular, the restructuring of 63 SBV provincial branches into 15 regional branches - including Regional Branch No.5, which covers six provinces - has had far-reaching impacts on all operational aspects of those branches, from the IT system organization, the asset management, settlements, and treasury operations, to inspection and supervision of the credit institutions in the areas.

Regarding the implementation of the key tasks of the SBV Regional Branch No.5, Deputy Governor Doan Thai Son emphasized that the Mission would focus on assessing the results of the new organizational model while addressing any difficulties in the banking operations, including the working mechanisms, the coordination, the financial issues, and the means. The banks and other institutions would report on the new model's impacts on their operations, particularly any challenges that need resolution.

Overview of the working session (Photo: Duc Khanh)

Director Le Quang Huy of the SBV Regional Branch No.5 provided an overview of the region's operations, its strategic directions, and proposed solutions to enhance the effectiveness. He noted that on March 1, 2025, the SBV Regional Branch No.5 officially commenced operations under the new model, merging six northern mountainous provincial branches of Thai Nguyen, Bac Ninh, Bac Giang, Cao Bang, Bac Kan, and Lang Son into one. This restructuring was part of the banking sector's administrative reform strategy to enhance efficiency and management capabilities. The re-organization not only improves the work quality but also facilitates the financial and banking management from the urban to the remote areas.

Director Le Quang Huy of the SBV Regional Branch No. 5 reports on the operational status (Photo: Duc Khanh)

The organizational structure of the SBV Regional Branch No.5 consists of a Board of Directors with one Director and five Deputy Directors responsible for each province, along with seven specialized divisions. These divisions handle various tasks, including the supervision over the banks’ branches, inspection of the credit institutions, treasury and accounting operations, and payment services. As of March 1, 2025, the region had stabilized its workforce with 219 personnel, including 121 staff members at the head office in Thai Nguyen and 98 staff members in other provinces.

Reforming apparatus and operational model to enhance efficiency

According to Director Le Quang Huy, throughout 2024 and early 2025, the SBV Regional Branch No.5 had effectively carried out the credit management and supervision activities while implementing the directions of the SBV. As of February 2025, the total credit outstanding in the region had exceeded VND 511,977 billion, accounting for approximately 3.25% of the total credit outstanding of the entire economy. This reflects the banking sector's special focus on the priority sectors such as agriculture and rural development, industry, and construction. Specifically, the credit for agriculture and rural development had reached VND 163,651 billion, making up 31.96% of the region's total credit outstanding.

The credit institutions in Region 5 have been closely monitored by the SBV Regional Branch to ensure compliance with the regulations on the interest rates, the credit growth, and the foreign exchange operations. Despite the market fluctuations and the external economic factors, Region 5 has maintained its stability in the key economic indicators, especially in the capital mobilization and the credit allocation. By the end of February 2025, the region's total mobilized capital had reached VND 567,206 billion, a 1.29% increase as compared to the end of 2024, representing 3.7% of the country's total mobilized capital.

Beside the credit management, the SBV Regional Branch No.5 has strengthened its oversight of the foreign exchange and gold trading operations in the area. The financial institutions and businesses are required to strictly comply with the foreign exchange transaction and gold trading regulations. The SBV Regional Branch has implemented a series of supervisory measures to ensure the market stability and mitigate any economic risks.

Continuing to uphold the sense of responsibility

In his concluding remarks, Deputy Governor Doan Thai Son highlighted the importance of identifying the strategic solutions for the banking sector in the upcoming period. He emphasized that 2025 marks the final year of the 2021-2025 socio-economic development plan and serves as a critical transition before the 14th National Party Congress. This is also a decisive time for strengthening the economic foundations in preparation for the 2026-2030 development phase. The Deputy Governor reaffirmed that the banking sector plays a crucial role in the economy and must continuously strive to meet the new development requirements.

He also stressed the necessity of stabilizing the SBV's organizational structure and restructuring the workforce to enhance efficiency. The banking entities must improve their management processes, resolve any operational difficulties, and support the credit growth, providing financial services, and promoting the economic expansion. The sector aims for a growth rate of at least 8% in 2025, with a target of a double-digit growth from 2026 to 2030.

To achieve this, the Deputy Governor instructed the SBV regional branches and the credit institutions to promote their senses of responsibility and implement the key tasks as outlined in the Government’s Resolution 01/NQ-CP and the SBV’s Directive 01/CT-NHNN. Specifically, the SBV Regional Branch No.5 must promptly review and optimize its operational procedures, business processes, and IT infrastructure under the new model to ensure security and efficiency in the banking operations.

Furthermore, Mr. Doan Thai Son also emphasized the need for the credit institutions to strengthen the credit risk control, especially in high-risk sectors. Credit should be prioritized for production and business operations, key infrastructure projects, and the economic growth drivers as instructed by the Government. Additionally, financial assistance programs, particularly for disaster relief efforts and social credit schemes, should be vigorously implemented to foster sustainable development.

The Deputy Governor also urged the banking entities to proactively coordinate with the SBV Central units to address any pending recommendations, ensuring smooth and effective policy implementation. All tasks must be executed decisively to achieve the banking sector's development objectives, and contribute to the overall economic growth of the country.

HM