Wednesday, 17 Jan 2018

Improve security in the banking system

Updated at Friday, 13 Oct 2017, 08:10
The Hanoitimes - Banking sector needs to improve measures to prevent and avoid violation in fields of monetary and banking, as well as to drastically and timely deal with violation to create a transparent monetary and credit environment, with a view to ensure the benefit of the customers and the stability of the system.
The conference on the security and safety of the banking system organized by the State bank of Vietnam on October 12. Recently, the banking system has actively implemented the instruction of the government with regard to restructure credit institutions in relation with non performing loans (NPLs). As such, the system of credit institutions has transformed positively and improving the security, safety, discipline and order in fields of monetary and banking.

However, through practice in state management of banking activities, the process of checking and monitoring violations has shown some shortcomings, including: violations with regard to issuing credit, restructuring debt, categorizing debt, mobilizing capital, management, internal monitoring; accounting and financial management among others. 

In this context, in order to efficiently implement targets at the Resolution No. 42/2017/QH14 dated June 21, 2017 of the National Assembly to pilot dealing with NPL of credit institutions and the instruction of the government, the governor of the SBV along with leaders of related ministries and administrative agencies have discussed and looked for solutions to ensure security and safety in the banking system. Leaders of the SBV said, in the coming time, it is necessary to improve measure to prevent and avoid violations in monetary and banking fields, drastically and timely deal with violations to create a transparent monetary and credit environment, with a view to ensure the benefit of the customers and the stability of systems for credit institutions, as well as to contribute to the socio-economic development.

On the other hand, the implementation of the proposal “Restructuring the system of credit institutions for the period 2011-2015” issued under the Prime Minister's Decision No. 254 /QD-TTg dated March 01, 2012, including the establishment of the Vietnam Asset Management Company (VAMC) in 2013 to acquire NPLs, and subsequent legal and regulatory amendments to banking restructuring signal Vietnam’s determination to tackle NPLs and stabilize the financial sector. While NPL resolution has made positive progress, outstanding and potential NPL volumes remain high, imposing risks on financial institutions’ safety and efficiency. Moreover, the regulatory framework on resolution of NPLs and secured collateral remains ineffective.

General Director of VAMC Doan Van Thang said, in recent 4 years, in order to control the rate of NPL to under 3%, VAMC has purchased a large amount of NPL. Specifically, as of August 31, 2017, VAMC has purchased 26,110 NPLs from 16,197 customers with value of more than 266 trillion VND. In particular, in 2015, VAMC has purchased a record high number of NPL with more than 100 trillion VND. Recently, VAMC has acquired the guaranteed assets of the Saigon One Tower under the ownership of Saigon On Tower to deal with NPL.
Nguyen Tung
Print pageSend to friend Share on facebook  Share on twitterCommentView comment
Former Greek Ambassador paints Hanoi with love
Thiết kế web: OnIP™