Governor Le Minh Hung of the State Bank of Vietnam (SBV) had a meeting with Ms. Ceyla Pazabassiouglu, Senior Director for the Finance and Markets Global Practice, World Bank Group, in Hanoi on May 28.
The meeting
Attending the meeting were representatives from International Cooperation, Financial Stability Department, Information Technology Department, Legal Department, Banking Supervision Agency, Personnel Department, and Vietnam Asset Management Company (VAMC).
Speaking at the meeting, Governor Le Minh Hung warmly welcomed the working visit of WB delegation to Vietnam. He briefed the guests of situations and orientations to resolve NPLs and the restructuring of weak credit institutions. He said that the SBV had implemented the first period (2011-2015) of the Scheme on restructuring credit institutions and resolving NPLs and obtained encouraging results.
He went on, for the second period (2016-2020), the restructuring of credit institutions continued to be the priority task of the Government and the SBV. The SBV reported to the Political Bureau the Scheme on restructuring the system of credit institutions and resolving weak credit institutions; submitted to the National Assembly Resolution on resolving NPLs (it is expected to be approved in June, 2017); submitted to the National Assembly draft Law on revising a number of articles of Law on Credit Institutions.
In the coming time, the Government and the SBV would strictly restructure the system of credit institutions, boost the development and determine to ensure safe and sound banking operations in line with international practices. Therefore, the SBV hoped for further support from the WB both experience in resolving NPLs and weak banks and technical assistance in the coming time. The SBV Governor spoke highly of WB’s sending delegations to work with SBV entities to formulate scale of demand for technical assistance in order to enhance the completion of legal framework for the banking sector, strengthen the state management and supervision of banking operations, enhance the resolution of NPLs and weak banks, and improve financial stability and macro safety. Governor Le Minh Hung stated that It is high time for enhance technical assistance to the SBV for serving the objective of implementing successfully Plan of restructuring the system of credit institutions for 2016-2020 period.
For her part, WB Senior Director Ceyla Pazabassiouglu expressed her sincere thanks for the hospitality of the SBV Governor. She highly appreciated results the SBV obtained in the process of implementing Plan of restructuring the system of credit institutions and NPLs resolutions over the past time. She assessed that the SBV’s roadmap, methods and measures of resolving NPLs and restructuring the system of credit institutions are right direction in accordance with situations and conditions In Vietnam. She said that WB would always support the SBV for NPL resolution and restructuring of credit institutions in order to ensure safe and sound banking performance.
Le Hang