Upon the directions of the Prime Minister at the Conference, Governor Le Minh Hung of the State Bank of Vietnam (SBV) clarified the tasks to be implemented by the banking sector in 2019.
Speaking at the Conference, SBV Governor Le Minh Hung frankly admitted that the SBV's management and the credit institutions’ operations still faced many challenges as well as obstacles and limitations, which needs a clear roadmap to thoroughly overcome.
The Governor noted that the functional departments of the SBV should strengthen the advisory work and flexibly, closely monitor the regional and international as well as domestic monetary developments to proactively propose necessary solutions.
At the same time, the banking system must regularly pay attention to the quality and efficiency of the inspection and supervision work, especially the remote supervision; improving the legal framework, in which further reviews should be conducted, especially on those regulations related to the monetary policy management and the banking operations.
SBV Governor Le Minh Hung delivers a speech at the Conference
The SBV considers 2019 to be a very important year for ensuring the accomplishment of the country's socio-economic plan for the 2016-2020 period. The SBV Governor said that in order to achieve the targets of macroeconomic stability, controlling inflation at below 4%, economic growth of 6.8% in the context of the world economy with many complicated and unpredictable fluctuations, the tasks set out for the banking sector in 2019 are very heavy. The banking sector will focus on implementing the key tasks and solutions in 2019 as follows:
Firstly, administering the monetary policy in a proactive, flexible and prudent manner, in harmony with the fiscal policies and other macroeconomic policies to control the inflation at an average of under 4%, in line with the target set out for 2019; maintaining the macroeconomic stability, supporting the economic growth at a reasonable level, stabilizing the money and foreign exchange markets. In 2019, the total means of payment are set to increase by about 13%; credit increases by 14%, with adjustments in accordance with the actual situations and developments.
Secondly, continuing to actively implement the Scheme of Restructuring the credit institutions system in association with bad debts handling by 2020, in which focusing on effectively handling with the weak credit institutions; strengthening the consolidation and re-organization of the people’s credit funds (PCFs) system to ensure operations in accordance with the principles and objectives, and maintaining the local socio-economic stability; strengthening the inspection, supervision, surveillance and strict control of the credit institutions’ operations.
Thirdly, focusing on implementing the Scheme for non-cash payment development, gradually reducing the ratio of cash payments in the economy; building, improving and upgrading the national payment infrastructure; creating a basis for implementing new payment products and services; monitoring the payment systems, ensuring safe and efficient operations; enhancing the security and safety in electronic payments; applying security payment standards in compliance with the international standards; improving the legal framework to better manage the provision of services by the payment and e-payment intermediaries.
Fourthly, promoting the administrative procedure reform in the banking operations in order to reduce the costs of complying with the administrative procedures, facilitating the organizations and individuals in administrative transactions with the SBV and with the credit institutions to contribute to improving the business environment in the monetary and banking fields, improving the national competitiveness, promoting businesses in general and credit institutions in particular to develop sustainably; striving to improve the Access to Credit Index of Vietnam, which is targeted to increase by at least 1 rank in 2019.
VA