In the afternoon of March 31, 2020, at the virtual meeting to implement the Prime Minister's Directive No. 16/CT-TTg dated March 31, 2020 on the implementation of the urgent measures to prevent and combat COVID-19 pandemic, First Deputy Governor Dao Minh Tu of the State Bank of Vietnam (SBV) directed the entities in the whole banking sector to take actions. In particular, the SBV Deputy Governor requested the entities throughout the sector to continue to ensure timely, accurate and safe services of the essential social and economic demands, such as cash transactions and payments.
SBV Deputy Governor Dao Minh Tu speaks at the meeting
Also attending the meeting at the SBV headquarters, there were leaders and representatives of a number of departments, agencies, units of the SBV, several commercial banks which are based in Hanoi. Joining the meeting from the Ho Chi Minh City side, there was the Director of the SBV Ho Chi Minh City Branch and a number of commercial banks which are based in Ho Chi Minh City.
At this meeting, Mr. Nguyen Quoc Hung - Director General of the Department of Credit for Economic sectors - announced the main contents of Directive No. 02/CT-NHNN dated March 31, 2020 issued by the SBV Governor on urgent measures of the Banking sector to contribute to the fight against and overcome the difficulties caused by the impacts of the COVID-19 pandemic.
Mr. Nghiem Xuan Thanh - Chairman of Vietcombank Board of Directors - reports on the implementation of Circular 01/2020/TT-NHNN
After having listened to the representatives of the commercial banks reporting on the situations and results of the implementation of the SBV Governor's Circular No. 01/2020/TT-NHNN dated March 13, 2020, the advantages and difficulties, as well as their proposals and recommendations to the SBV, the Government and the relevant ministries in continuing to promote the programs to support the businesses and people affected by the COVID-19 pandemic, SBV Deputy Governor Dao Minh Tu concluded that with the complicated developments of the COVID-19 pandemic, which has negatively impacted the domestic economy, the Banking sector has proactively developed plans to prevent and combat the disease impacts to ensure the operations of the system in a safe, smooth and efficient manner. In particular, with the SBV Governor’s Circular 01, which was enacted just a short time ago, the whole banking sector has taken drastic actions, the commercial banks have implemented a series of packages, programs, products to support the people and the businesses, especially the customers who have outstanding credit balances and are under negative impacts caused by the epidemic. These measures have achieved some positive results, which have been highly applauded by the Government, the relevant ministries and the business community.
The Deputy Governor said, in further following the spirit of "fighting the epidemic like fighting the enemy", with the determination and greater uniformity from the central to the local levels, from the central bank to the credit institutions, in order to effectively implement the urgent measures to prevent and fight the pandemic, and to overcome the difficulties caused by the pandemic impacts on the economy, the SBV Governor has issued Directive 02 on the urgent measures of the banking industry to enhance the prevention and control, and overcome the difficulties caused by the COVID-19 pandemic.
The Deputy Governor stressed that the banking sector plays an important role in the economy; the various measures of the banking sector are very important and of great significance at the present time. With a high sense of responsibility to the society and the community, the Deputy Governor hoped that the whole banking sector can take drastic actions, with strong unity and determination to share in implementing the SBV Governor's Directive 02.
Overview of the meeting
In addition, the whole banking sector has effectively implemented the Official Dispatch No. 03/CD-NHNN of the SBV Governor on the implementation of the Prime Minister's Directive No. 16. In particular, the credit institutions are entitled to take proactive actions to arrange reasonable numbers of staff to work in office to ensure stable operations while still minimize the numbers of staff working at the office. For the front office units serving the essential needs such as payment, cash transactions of the people, the operations of the ATMs of the commercial banks, the banks have to ensure smooth, safe operations, and shall report to the local authorities for facilitation since this is an essential service for the people’s needs. Additionally, the banks should inform the public about the possibility of "depositing in one place, withdrawing money in many different places" so that the people know and can go to other branches or transaction offices to perform transactions in case a specific branch or transaction office is located in the coronavirus isolated zone.
The Deputy Governor also requested the whole sector, based on the contents of Directive No. 02/CT-NHNN, to immediately take actions in a drastic, positive and proactive spirit to implement the urgent measures, especially during the disease peak. Also, it is necessary to continue the drastic and wide implementation of Circular 01 in all commercial bank branches. In which, the main focus should be on the implementation of such measures as debt restructuring, postponing and extending debt service, maintaining the debt categories, reducing the interest rates of old and new loans, encouraging strong and deeper reductions of interest for the customers and the types of businesses which are in difficulties in order to help maintain the production and business operations. The commercial banks should make efforts to reduce the lending rates for those businesses and families affected by coronavirus with the target reduction of about 2% compared with the time before the epidemic.
According to the current projections, the economy this year will experience many difficulties, and the credit institutions will also face many challenges, therefore, the commercial banks need to cut down on their operating costs, reducing the deposit interest rates appropriately, and acting unanimously to reduce the lending rates for the economy. On the other hand, the commercial banks need to develop their business plans, profit plans, wage and income policies to suit the new situations.
The Deputy Governor further requested to enhance the communication work of the SBV, with special focus on communicating the programs, policies, guidelines of the SBV, while the credit institutions are also requested to actively disseminate information about their programs and packages related to the implementation of the urgent measures of the Banking sector to enhance the prevention, control and to overcome the difficulties caused by the COVID-19 pandemic.
Besides, the commercial banks are also required to further review the developments, assess the current situation, the issues and difficulties, and make prompt reports on their assessments of the operations and those customers and debts affected, as well as the implementation results of the support programs, etc. as required by the SBV at Directive No. 02.
Speaking highly of the spirit and efforts of the commercial banks, the SBV Deputy Governor concluded by requesting the commercial banks which have already made plans to launch product packages, interest rate reduction programs to support the businesses to announce and immediately commence the implementation, and also requested the whole banking sector to take unanimous actions to implement the urgent measures of the banking industry to enhance the prevention, control and to overcome the difficulties caused by the impacts of the COVID-19 pandemic.
VA