On January 31, 2024, at the headquarters of the State Bank of Vietnam (SBV), Deputy Governor Pham Quang Dzung had a meeting with the Mission of the Banking Working Group (BWG) led by Ms. Michele Wee, Chief Executive Officer (CEO) of the Standard Chartered Bank Vietnam Ltd. - incumbent Chairwoman of the Banking Working Group (BWG) for the 2022-2023 term; and Mr. Kojima Masao, Managing Director of MUFG Vietnam - incoming Chairman of the BWG for the next term.
At the meeting, Deputy Governor Pham Quang Dzung briefed the guests of the SBV’s policies and the results of the banking sector in 2023. In 2023, in the context of the global sluggish growth, high inflation rates around the world, a decline in the global trade, and the geopolitical conflicts, while Vietnam’s economy is highly open, Vietnam’s banking sector obviously could not avoid the impacts, which had affected the monetary and banking operations. In that context, the SBV had closely monitored the macro-economic developments in the domestic and international markets, managed the monetary policy tools with the appropriate adjustments, contributing to maintaining the macro-economic stability, controlling the inflation at a low level, supporting the economic recovery and ensuring a prudent banking system. In 2023, the SBV had obtained encouraging results in the following areas: (i) Institutional improvement (the 15th National Assembly (NA) officially passed the Law on Credit Institutions (revised) at the third extraordinary session (Law No.32)); (ii) Promotion of the digital transformation; (iii) Cashless payment, and (iv) Green credit.
The SBV Deputy Governor speaks at the meeting
Moreover, Deputy Governor Pham Quang Dzung shared about the SBV’s orientations in the coming time. Accordingly, the SBV would continue to closely monitor the market developments and the situations in the international and domestic markets, manage the monetary policy in an active and flexible manner in association with the fiscal policy and other macro policies in order to contribute to maintaining the macro-economic stability and supporting the economic growth. The SBV would also continue to implement the key tasks as stipulated in Directive No. 01/CT-NHNN dated January 15, 2024, focusing on (i) continuing to improve the legal frameworks and to formulate guiding documents related to the Law on Credit Institutions (revised); (ii) reviewing, revising and improving the mechanisms and policies on baking inspection and supervision; improving the efficiency and effectiveness of the banking supervision and inspection; and (iii) strictly implementing the “Scheme of restructuring the credit institutions in association with NPL resolution for the 2021-2025 period”, contributing to developing a safe and sound system of credit institutions toward efficiency and transparency, in line with the applicable laws and the international standards and practices.
Ms. Michele Wee, Chairwoman of the Banking Working Group (BWG) for the 2022-2023 term
The SBV Deputy Governor proposed that, in 2024, the BWG would continue to coordinate closely with the SBV in the following priority areas: (i) reviewing and revising the existing regulations to ensure consistency with the market development; supporting for the implementation of the Banking Sector’s Action Plan; (ii) enhancing the cooperation with and support to the SBV in the banking supervision and inspection; (iii) other matters regarding ESG in the banking sector – international experience and recommendations to Vietnam’s banking system; (iv) promoting the digital transformation in the banking sector.
On the BWG’s side, Ms. Michele Wee, Chairwoman of the Banking Working Group (BWG) for the 2022-2023 term, congratulated Mr. Pham Quang Dzung on his appointment as the SBV Deputy Governor. In addition, the BWG Chairwoman made high evaluation for the SBV’s achievements in 2023, in spite of a challenging year of 2023 affecting the global and Vietnam’s economy. In addition, regarding the ESG, the BWG Chairwoman said that the BWG would surely continue to cooperate with the SBV in the areas of green transition/green finance.
Deputy Governor Pham Quang Dzung, other SBV officials and the BWG Mission take a group photo
On this occasion, Ms. Michele Wee introduced Mr. Kojima Masao, Managing Director of MUFG Vietnam, who will be Chairman of the BWG from April 1, 2024. Following that, other members of the BWG also shared about the BWG’s orientations regarding cashless payment, digital transformation in the banking sector, as well as the ESG, etc.
On the SBV’s side, representatives from the SBV relevant departments also provided their observations on: (i) The report on the cooperation between the SBV and the BWG in 2023 and the cooperation plan in 2024; (ii) update of the Law on Credit Institutions and the Action Plan in line with Directive No. 01/CT-NHNN; (iii) orientations for the banking inspection and supervision in 2024; (iv) ESG and green growth.
Toward the end of the meeting, Deputy Governor Pham Quang Dzung thanked and made high evaluation for a successful 2022-2023 term of Ms. Michele Wee as Chairwoman of the BWG. The SBV Deputy Governor also wished Mr. Kojimo Masao successes in assuming the position as Chairman of the BWG for the next term. The SBV Deputy Governor hoped that the cooperative relationship between the SBV and the BWG would continue to develop more strongly, and the BWG would further support Vietnam in the implementation of the priority tasks of the banking sector in the coming time. On the occasion of the coming Lunar New Year of the Dragon, Deputy Governor Pham Quang Dzung wished the BWG members health, happiness and successes.
Le Hang