The Governor of the State Bank of Vietnam has issued Document No. 5596 /NHNN-VP to the SBV entities, the credit institutions and the foreign bank branches on the implementation of the tasks for the last six months of 2020.
SBV headquarters
Accordingly, the SBV Governor has requested the whole bank industry to focus on implementing drastically and effectively the key tasks in the last six months of 2020, specifically as follows:
Managing the monetary and credit policies closely following the international and domestic economic developments in order to make timely forecast and assessments
The SBV Governor has requested the SBV entities to closely monitor and update official information about any new developments of the Covid-19 pandemic in order to implement strictly and fully all measures to contain the outbreaks; proactively formulate and apply the appropriate response scenarios, ensuring safe and smooth banking operations, especially the SBV’s information technology and payment systems.
About the management of the monetary and credit policies, the SBV entities are requested to closely monitor the domestic and international economic developments in order to forecast and assess the situations, promptly recommend measures of regulating the monetary and credit policies appropriately, ensuring the liquidity, controlling the inflation, supporting the stability and enabling the reduction of the common interest rates; Suggesting and proposing solutions to the Government’s Steering Committee on Price Management in order to control the inflation in line with the set target.
Closely monitoring the market developments to proactively manage the exchange rates in a flexible manner, and always standing ready to intervene in the market when necessary to stabilize the forex market, contributing to the macro-economic stability; Closely following the international and domestic gold price developments in order to promptly provide information, alert the people, and stablize the market psychology.
Directing the credit institutions to focus credit on production and business operations, especially the priority fields; Urgently considering to adjust the targets for credit growths in 2020 for the credit institutions meeting the prudent ratios and being capable of credit extension, while not increasing the common mobilization and lending interest rates; Continuing to closely control credit for risky fields such as investment, estate property, securities, BOT, BT, etc.
Urgently finalizing the amendment and supplementation of Circular No. 01/2020/TT-NHNN in accordance with the practical situations in order to create more favorable conditions for businesses and credit institutions to resolve difficulties and recover the economic growth; Focusing on directing the credit institutions to drastically implement the measures of restructuring debts, providing new loans, reducing the interest rates and fees, etc. as stipulated in Circular No. 01/2020/TT-NHNN in order to provide more timely and effective support to the Covid-19 affected customers to overcome the difficulties, recover production and business operations as directed by the Government and the SBV.
Coordinating with the Ministry of Labor, Invalids and Social Affairs to submit to the Government and the Prime Minister a draft Resolution amending and supplementing Resolution No. 42/NQ-CP dated April 9, 2020 and a Decision amending and supplementing Decision No. 15/2020/QD-TTg stipulating the implementation of policies to support the Covid-19 affected people; Amending Circular No. 05/2020/TT-NHNN on refinancing for the Vietnam Bank for Social Policies to implement the support policies for the Covid-19 affected people.
Directing and supervising the credit institutions, especially the consumer finance companies, Vietnam Bank for Agriculture and Rural Development (Agribank),… to implement strongly the consumer credit packages to support the legitimate needs of the people with appropriate interest rates, simple procedures and in compliance with the applicable laws.
Continuing to promote the communication on credit programs and policies, especially the solutions of the banking sector to meet the demand for borrowing, contributing to limiting black credit; Closely coordinating with the ministries, agencies and local authorities to identify and strictly handle any violations in consumer lending activities of the credit institutions.
Regarding the restructuring plan in association with resolving non-performing loans, the SBV Governor has requested the entities to continue closely monitoring and directing the credit institutions to drastically and effectively implement the restructuring plan in association with resolving bad debts in the 2016-2020 period; Urgently coordinating with the relevant ministries and agencies to implement the procedures for increasing the charter capital for Agribank from the state budget; Continuing to deal with the increase in the charter capital of state-owned commercial banks (VietinBank, Vietcombank) through paying dividends by shares; Requesting the Ministry of Finance to urgently submit to the Government for promulgation of a new Decree amending and supplementing Decree No.91/2015/ND-CP in order to have the legal foundation for the recapitalization of the state- owned commercial banks; Building a roadmap to increase the capital for state-owned commercial banks in the 2021-2026 period, including an increase of capital from the state budget in order to be submitted to the competent authorities for approval, etc.
Evaluating the results of the implementation of the Scheme on "Restructuring the system of credit institutions in association with NPL resolution in the 2016-2020 period" in combination with the assessment of the impacts of the Covid-19 pandemic on the objectives of the Scheme; on that basis, formulating a Scheme on restructuring the credit institutions in association with dealing with bad debts in the period of 2021 - 2025.
Continuing to develop and improve the mechanisms and policies, and directing the credit institutions to promote the development of non-cash payments; Promoting the development of digital banking services and expanding payments via banks for public services, especially in the healthcare and education sectors.
Continuing to coordinate with the relevant ministries and agencies to finalize the draft Decision of the Prime Minister approving the pilot implementation allowing the use of the telecom accounts to pay for small-value goods and services and submit to the Prime Minister as directed at Notification No. 250/TB-VPCP dated July 24, 2020.
Finalizing and submitting to the Government for promulgation of a Decree on Fintech Regulatory Sandbox; Coordinating with the ASEAN countries to exchange, discuss and make the best use of the technical assistance provided by the international financial institutions (IMF, ADB, WB,...) on new banking services such as digital banking, digital money,…
Enhancing the monitoring and alerting of risks in payment activities, providing intermediary payment services; Regularly inspecting, examining, identifying and handling with violations in payment activities and payment intermediaries; Coordinating with the relevant ministries and agencies to strengthen the security, safety and confidentiality in payment activities.
Conducting reviews and evaluations of the schemes, programs and plans in the payment sector: the implementation results of of the non-cash payment promotion scheme in the 2016-2020 period; proposing solutions to promote cashless payments in the 2021-2025 period; the scheme of promoting payments via banks for public services such as taxes, electricity, water, tuition fees, hospital fees, and payments of social security programs; the Strategy for monitoring the payment systems in Vietnam during the period of 2014-2020,...
Supporting and accompanying the businesses and the people to overcome difficulties, contributing to the recovery of production and business operations
The SBV Governor has requested the credit institutions to monitor and promptly update official information on the new developments of the Covid-19 pandemic; proactively apply response measures of each credit institution system, ensuring safe and smooth operations in all cases.
Regarding the credit operations, continuing to focus on drastically implementing the measures of expanding credit for production and business, especially the priority areas, as well as conducting measures to remove the difficulties for the businesses and the people in accordance to Circular No.01/2020/TT-NHNN and the future Circular amending and supplementing Circular No.01/2020/TT-NHNN upon having been issued by the SBV; Regularly inspecting and supervising the implementation of Circular No.01/2020/TT-NHNN.
Strictly controlling credit for potentially risky sectors and areas, especially credit for investment, estate property, securities, BOT, BT,...; Allocating the needed capital to develop lending products to meet the legitimate needs of the people, contributing to limiting black credit.
Strictly complying with the instructions of the Government, the Prime Minister and the SBV about reducing the operating costs, salary and profit in order to continue reducing the actual lending interest rates for current and new borrowers, supporting and accompanying the businesses and people to overcome difficulties, contributing to the recovery of production and business operations after the pandemic; Complying with the SBV's regulations on lending interest rates for five priority areas as directed by the Government.
The credit institutions in general, the consumer finance companies and Agribank in particular, are requested to strongly and effectively implement consumer credit programs and products with reasonable interest rates; Strictly complying with the SBV’s regulations on consumer credit; Reviewing and finalizing the internal regulations and strengthening the inspection, supervision, identifying and strictly handling with any violations of the legal regulations and the internal regulations of the credit institutions; Strongly renovating and reforming the procedures of extending credit and providing other banking services; Simplifying the sequences and procedures, shortening the loan appraisal period while still ensuring the safety and compliance with the applicable laws.
Regarding the restructuring plan in association with NPL resolution and the operational safety, continuing to effectively implement the approved restructuring plan associated with bad debt handling towards 2020; focusing on resolving bad debts and the related collaterals for bad debts.
Implementing strictly all conclusions of the inspection, audit missions and the alerts of the SBV and other competent authorities; enhancing the efficiency of internal inspection and control; actively preventing, detecting and strictly handling with any violations of individuals and units.
The consumer finance companies and the people’s credit funds are requested to strictly comply with the regulations on mobilization, lending, debt collection, transparency, operational security and safety.
On the payment activities, the credit institutions are requested to proactively and actively coordinate with the relevant ministries, agencies and public service providers to promote non-cash payments for public services; strengthening the application of the Industrial Revolution 4.0 achievements to develop convenient and safe payment services for customers, especially in digital banking; focusing on implementing the solutions to ensure the security and safety of the information systems, preventing disclosure and data leakages on the entire information system and ensuring payment safety; ensuring the interests of the parties when there are risks and frauds in payment activities.
The SBV Governor has also requested the credit institutions to implement other key tasks, such as strictly complying with the SBV’s regulations on vaulting safety; enhancing the supervision, the internal self-inspection; strengthening the security and safety of the vault; preventing any violations in money management and treasury operations, etc; proactively supporting and helping to remove the difficulties for the businesses and the people affected by the Covid-19 pandemic for the development of the country and the banking sector.
Le Hang