Governor Le Minh Hung of the State Bank of Vietnam (SBV) had a meeting with Mr. Timothy Franz Geithner, President of Warburg Pincus, in Hanoi on September 20. Attending the meeting were representatives from International Cooperation Department, Banking Supervision Agency and SBV Office.
At the meeting, Governor Le Minh Hung warmly welcomed the delegation of Warburg Pincus led by President Timothy Franz Geithner to Vietnam, and emphasized that as being former Secretary of the U.S. Department of the Treasury and former President and Chief Executive Officer of the Federal Reserve Bank of New York, all experience shared by Mr. Timothy Franz Geithner is very meaningful for the restructuring process of the banking sector and NPL resolution in Vietnam. He briefed the guest of encouraging results in the implementation of the Scheme on restructuring credit institution system and resolving NPLs for 2011-2015 period as well as information about the Scheme on restructuring credit institution system and resolving NPLs for 2016-2020 period, Resolution on pilot resolving NPLs of credit institutions and draft Law on revising several articles of Law on Credit Institutions to be submitted to National Assembly for approval in October. At the same time, he asserted the determination of Vietnamese Government and the SBV to accelerate the completion of legal framework, publicize transparent banking operations, strengthen the restructuring of credit institutions and NPL resolution, and enhance governance in line with international practices.
For his part, President Timothy Franz Geithner expressed his impression on Vietnam’s achievements, especially improved investment environment and macro-economy managed in a stable and consistent manner. He said that Vietnam is a potential market attracting many foreign investors. Sharing experience in solving subprime mortgage crisis in U.S in the past, Mr. Timothy Franz Geithner insisted on the U.S Government’s role in supporting the financial sector right at the peak of the crisis for rapid recovery. He also highly appreciated encouraging results of the SBV in the implementation of restructuring banking sector and resolving NPLs over the past time. He assessed that the roadmap, method and orders of resolving NPLs and restructuring the banking industry are on the right direction, creative and in accordance with conditions and circumstances in Vietnam.
Moreover, SBV Governor and President Timothy Franz Geithner discussed and shared their views on attracting foreign investors to participate in the restructuring the system of credit institutions in Vietnam. Regarding to this substance, the SBV Governor said that Vietnamese Government and the SBV have been researching to formulate appropriate mechanism to support for domestic and foreign investors who would like to join in the restructuring process of the banking sector through investment in weak commercial banks. He expressed his hope that, in the coming time, Mr. Timothy Franz Geithner would share further his experience in restructuring weak banks and resolving NPLs in the U.S., at the same time make his comment on the restructuring of the system of credit institutions in Vietnam.
Also at this meeting, Mr. Timothy Franz Geithner said Warburg Pincus had interests in opportunities of investment in Vietnam’s financial sector, including commercial banks, finance companies, asset management companies, and etc. In his reply, the SBV Governor asserted that Vietnam always welcomes foreign investors with their strengths of high qualified human resources, internationally standardized management system, advanced governance model and modern technology to invest Vietnam’s banking industry.
Le Hang