PM urges banking sector to strive for higher results

Monday, 2021-04-19 22:11:32
 Font Size:     |        Print
 

Prime Minister Pham Minh Chinh. (Photo: VGP)
 Font Size:     |  

NDO – Prime Minister Pham Minh Chinh has hosted a working session with the State Bank of Vietnam (SBV), during which the cabinet leader urged the banking sector to promote its achievements for even better results in the near future.

>>> US removes Vietnam out of list of currency manipulators

Speaking at the meeting, PM Chinh emphasised the US Department of Treasury’s report on the macroeconomic and foreign exchange policies of major trading partners of the US, as issued on April 16, determined there is insufficient evidence to determine Vietnam manipulates its exchange rate.

The leader stated the positive adjustment has resulted from a great effort by leaders of the Party and State in diplomatic contact and the active and responsible work of a number of relevant agencies, especially the SBV, in helping the US make a proper assessment on the issue.

He urged the SBV to work closely with the concerned ministries and agencies and continue working with US authorities as part of an overall action plan to achieve a sustainable balance of trade between the two countries.

Affirming the banking system has achieved positive results, the PM also asked the industry to promote its effectiveness in order to have better results in the near future, focusing on reviewing the legal corridor and improving institutions to ensure a safe and healthy developed banking system, while strengthening decentralisation and the efficient use of monitoring, inspection, control and measuring tools to achieve the goals of curbing inflation, stabilising the macro-economy, supporting growth and building confidence among the people, domestic investors and the international market.

The sector needs to develop a response plan to the COVID-19 pandemic for the banking industry, while cutting costs and sharing profits to create favourable conditions for the people and businesses to access capital for recovery, but not allowing a lowering of lending standards which could pose risks to the system.

Regarding credit management, the PM said that in the long run, it is necessary to have radical solutions to develop the financial market with ensured stability, health and balance between the money market and the capital market to reduce pressure on capital from the credit institution system to meet the economy's demand for medium and long-term capital mobilisation.

As for restructuring and handling bad debt, it must be carried out drastically but on the principle of ensuring the safety of the system and of people's deposits, including coordination with the competent agencies to create appropriate mechanisms to attract domestic and foreign investors in restructuring bad debts, as well as having immediate and long-term solutions to deal with bad debt to ensure that the bad debt ratio is strictly controlled.

In the field of service provision, it is necessary to ensure the application of modern technology to adapt to the explosion of Industry 4.0 in the field of finance and banking and bring convenience and safety to the people, protecting consumers using financial services, promoting administrative reform and completing the legal corridor to create favourable conditions and the environment needed for new and innovative technological products which contribute to the development of the digital economy.