PM orders breakthroughs in banking sector

Hanoi (VNA) – Prime Minister Nguyen Xuan Phuc has ordered the banking sector to orientate itself in line with the Government’s spirit of breakthroughs.

Attending the meeting in Hanoi on January 9 to launch tasks for the banking sector, PM Phuc ordered the State Bank of Vietnam (SBV) to continue its flexible monetary policy as well as work to stabilise the macro-economy, paving the way for other sectors to thrive.

He underlined that this is a daunting task, requiring precise and rational management.

Hailing the banking sector’s contributions to the nation’s macro-economic stability in 2018, PM Phuc said that the SBV’s monetary policy was carried out in harmony with other macro-policies, which was important to keep the average inflation at 3.54 percent and below the ceiling target.

More specifically, in the context of complicated and unexpected developments of the global economy, the SVB’s policies created favourable conditions for domestic business and production, as well as helped increase the nation’s foreign exchange reserves to more than 60 billion USD.

Thanks to better management capacity, many financial institutions with poor performance in previous years showed greater profits in 2018, the leader said, adding that comprehensive restructuring in the credit institution system in association with bad debt settlement resulted in positive impact on the wider economy.

Also, he noted, the shake-up process in some organisations still lags behind requirement, that is why internal control and inspections in the banking sector must be carried out in a more timely manner to hand out strict punishment to any violation.

At the meeting, leaders of some commercial banks proposed that the Prime Minister soon increase the chartered capitals for state-owned commercial banks.

Meanwhile, the SBV asked the Ministry of Justice and other competent ministries and sectors to join hands in handle shortcomings in bad debts settlement. –VNA