The State Bank of Vietnam (SBV) held a conference to work out the tasks for supervision, credit institution restructuring and non performing loan (NPL) resolution in 2015 in Hanoi on December 24. The conference was attended and chaired by Deputy Governor Nguyen Phuoc Thanh, representatives of the SBV departments and entities.
Addressing the conference, Deputy Governor Nguyen Phuoc Thanh spoke highly of the efforts of the Banking Supervision Agency and relevant entities in banking inspection and supervision, credit institution restructuring and NPL resolution. He affirmed that in the context of macroeconomic and domestic production and business instability together with facing several difficulties and challenges, the important results of restructuring of credit institutions and NPL resolution have illustrated the highness of determination and great efforts of the Government and the SBV as well as the confidence and support of the whole political system for the scheme of credit institution restructuring and NPL resolution.
Delivering report on the main results of credit institution restructuring in 2014, representative of Banking supervisory agency, Mr. Bui Huy Tho, Deputy Director of License granting management Department stated that, in 2014, the SBV continues to accelerate the restructuring of credit institutions in accordance with the targets and roadmap of the Scheme of restructuring of credit institutions for 2011 – 2015 under the Decision No 254/QD-TTg (Scheme 254). Accordingly, banking system has focused on implementation of several synchronous measures to decisively resolve the limitation and weakness of banking sector in order to create a basis for gradually improvement of CIs’ operational quality and effectiveness to actively serve and assist the socio – economic development.
NPLs resolution task has been considered as a heart of credit institution restructuring. In the face of numerous economic difficulties, pressure from NPLs increase is also great. In 2014, banking industry has implemented several measures on NPL resolution in proactive and decisive manner in line with the Scheme of NPL resolution stipulated in Decision No.843/QD-TTg dated May 31, 2014 of the Prime Minister and the key tasks of the banking system on NPL resolution defined in Directive 01/CT-NHNN by the SBV Governor dated January 15, 2014. Therefore, banking system has obtained several important results in the NPL resolution that contributes to successfully fulfilling the assigned tasks of the whole banking sector.
According to Scheme 254, the main targets of restructuring credit institution system for 2011 – 2015 are to focus on improving financial soundness and consolidating operational capability for credit institutions; Increasing safety and effectiveness of credit institutions’ performance; Redressing the compliance and market based principles for banking activities. The results obtained in 2015 will be essential background for achieving the targets of a long run as follows: “In 2020, the banking sector will build up a system of multi - functional credit institution that operates in a safe and sound manner with various structure of ownership, scale and types, higher competitiveness; Base on advanced technology and governance in line with international standards of banking activities and efficiently meet the demand on financial and banking services and the economy”.
VMH