Hanoi (VNA) – National Assembly (NA) President Tran Thanh Man on August 17 called for tighter safeguards and clear accountability in the banking sector, stressing that the management agency role of commercial banks must not become a “safety certificate” for corporate bonds.
NA President Man made the remarks at a discussion on the explanation, incorporation of feedback and revisions to draft law amending and supplementing several articles of the Law on the State Bank of Vietnam, the Law on Anti-Money Laundering and the Law on Credit Institutions, within the framework of the 5th session of the NA Standing Committee in Hanoi.
He noted that the time remaining before the legislature considers and passes the law is limited. He asked the drafting agency to carefully review all opinions, clearly explain which proposals have been incorporated and which have not, and give adequate explanations for issues on which different views remain.
For specific issues concerning the application of one or more prudential ratios different from prescribed levels, there should be clear guidelines on the criteria for determining cases aimed at meeting socio-economic development requirements, while avoiding abuse by clearly defining the limits, scope, conditions and duration of application, he said, adding that there must also be a roadmap, prescribed ratios and mechanisms for supervision and risk control.
On international standards related to beneficial ownership, transaction information and reporting, the top legislator stressed that legal provisions must be accompanied by detailed guidance to ensure they can be implemented consistently.
He called for quantitative criteria and clear procedures for collecting and using information and data so that reporting entities can fulfill their obligations in practice, and avoid difficulties, inconsistent interpretations or excessively high compliance costs.
NA President Man also requested a thorough review of the responsibilities of ministries, sectors, agencies and reporting entities to ensure that authority and accountability are clearly defined and that the provisions are feasible.
Of particular concern was the proposed addition of commercial banks’ role as agents in managing and safeguarding corporate bonds. The NA President said the law must clearly define the rights and obligations of all parties and establish mechanisms to control conflicts of interest.
The same day, the NA Standing Committee also discussed revisions to two draft NA resolutions concerning investment policies for the Lao Cai-Hanoi-Hai Phong railway project and Ring Road No. 5 in the Hanoi Capital Region, as well as a draft resolution on special mechanisms and policies for handling legal violations related to the state and private economic sectors, and the application of science and technology, innovation and digital transformation./.
VNA
