On January 3, 2020, the Governor of the State Bank of Vietnam (SBV) issued Directive No. 01/CT-NHNN on organizing the implementation of the key tasks of the Banking sector in 2020. This Directive took effect from the date of signing.
According to the Directive, in conformity with the National Assembly's Resolution No. 85/2019/QH14 dated November 11, 2019 on the socio-economic development plan for 2020, Resolution No. 01/NQ-CP dated January 1, 2020 of the Government on the main tasks and solutions for implementing the Socio-Economic Development Plan and the State Budget Estimates in 2020 (Resolution 01), Resolution No. 02/NQ-CP dated January 1, 2020 on continuing to implement the major tasks and solutions to improve the business environment and raise the national competitiveness in 2020, the SBV Governor has requested the entities under the SBV and the credit institutions (CIs), the foreign bank branches to follow closely and fully the Government's motto of action for 2020: “Discipline, integrity, action, responsibility, creativity, and efficiency”, implementing successfully the solutions to manage the monetary policy and the banking operations in order to control the inflation, stabilize the macro-economy, support the economic growth, ensure safety and healthy development of the CI system.
The Directive outlines the overall objectives and tasks of the Banking sector in 2020, specifically as follows:
(i) Operating the monetary policy in a proactive, flexible and prudent manner, coordinating synchronously with the fiscal and other macroeconomic policies to control the average inflation below 4%, and to maintain the macroeconomic stability, supporting the targeted economic growth, stabilizing the money and the foreign exchange markets. It is targeted that the total payment means will increase about 13% in 2020; credit will increase by about 14%, with appropriate adjustments to match the actual developments and situations. The implementation of the monetary and credit solutions towards extending credit in parallel with enhanced safety, efficiency and ensured capital supplies for the economy.
(ii) Implementing drastically and effectively the Scheme on restructuring the system of CIs in association with dealing with bad debts in the 2016-2020 period (pursuant to Decision No. 1058/QD-TTg of the Prime Minister), focusing on dealing with bad debts of the credit institutions (in line with the National Assembly's Resolution No. 42/2017/QH14 on bad debt handling) in order to ensure safety of the banking operations; striving to bring the non-performing loan ratio to below 2% by 2020; the consolidated NPL ratio of the credit institutions, NPLs already sold to Vietnam Asset Management Company (VAMC), and debts that have gone through debt classification to below 3% (excluding NPLs of poor-performing commercial banks).
(iii) Continuing to improve the legal framework, mechanisms and policies in accordance with the international practices and standards; ensuring a consistent legal system, in order to better meet the state management requirements for the monetary and banking operations in the coming period. Implementing drastically the Development Strategy of Vietnam's Banking sector until 2025, with orientations to 2030.
(iv) Promoting non-cash payments, especially payments via banks for public services; ensuring stable, safe and efficient payment systems and intermediary payment services. Innovating and improving the information technology infrastructure, applying modern technologies to develop digital banking services. Enhancing security, safety and confidentiality in the banking operations.
(v) Promoting the administrative reform to ensure the successful attainment of the targets and tasks under the overall program of state administrative reforms and the SBV’s administrative reform plan for the period of 2016-2020, contributing to improving the business environment and improving the national competitiveness. Striving to maintain in the top ranks among the ministries and agencies in the public administrative reform index (PAR Index) in 2020; maintaining the credit access index among the top 25 countries.
In order to successfully accomplish the above-mentioned targets and missions, the SBV Governor has requested the SBV entities within its headquarters to proactively advise the Governor to implement possible solutions in line with the mandate of each entity, focusing on the following key tasks: Improving the legal framework in the monetary and banking areas; Regulating the monetary policy and the banking operations; Improving the effectiveness and efficiency of the banking inspection and supervision; Preventing and combating violations of the law in the banking areas; Implementing the Project of restructuring the system of CIs in association with dealing with bad debts in the 2016-2020 period; Focusing on directing, adjusting and enhancing the operations of the people’s credit fund system, and strengthening the management and supervision of the microfinance institutions; Promoting non-cash payments; Ensuring security and safety of the information technology activities, electronic payments, card payments; Promoting the administrative reform to contribute to improving the business environment in the monetary and banking areas; Strengthening the administrative disciplines; Reforming the public services, streamlining the organizational structure, cutting down unnecessary staff positions,...
For the SBV branches in the cities and provinces: Organizing the implementation of the monetary policies and the banking operations; Implementing the Project of restructuring the system of CIs in association with dealing with bad debts in the 2016-2020 period; Organizing and conducting inspection and supervision activities; Preventing and combating violations of the law in the banking areas,...
The credit institutions (CIs) are requested to focus on the following key tasks: Organizing effectively the implementation of the monetary policy and the banking operations; Implementing the Restructuring Scheme in association with handling with bad debts in the 2016-2020 period; Preventing and combating law violations in the banking areas; Promoting non-cash payments; Ensuring security and safety of the information technology activities, electronic payments, card payments, etc.
VA