The State Bank of Vietnam (SBV)’s key role in stabilising the monetary and financial system topped the agenda of a seminar in Hanoi on May 30.

Participants said in Vietnam , banks and financial companies managed by the SBV hold 90 percent of the total assets of financial organisations. Therefore, the central bank plays an important role in controlling the stability of the system of credit organisations.

Central banks of all countries in the world are aware of the importance of financial stability, which serves as an essential condition for macroeconomic stability, they said.

Affirming the State Bank’s irreplaceable role in stabilising the financial system, Dr. Vu Dinh Ang, an economic expert, stated that it is necessary to create an information coordination mechanism in order to realise this stability.

If all relevant agencies recognise the monetary-financial stability as vital in their countries, they will have good collaborations with each other, he said.

Sharing the same view, Dr. Can Van Luc affirmed that there is no transcendent and ideal financial-monetary stabilisation model but the central bank plays more and more important role.

He emphasised the need to have a policy coordination mechanism between the State Bank and relevant ministries and agencies as well as building an effective and transparent deposit insurance tool in case of crisis.

He also proposed the establishment of an international financial-monetary council with the State Bank being the main actor.

Participants suggested the SBV closely follow the financial system’s developments and put forth suitable monetary policies.-VNA