Conference on tasks of banking sector in 2014

The State Bank of Vietnam (SBV) held a conference to work out the tasks for the banking sector in 2014 in Hanoi on December 18. The conference was attended by Prime Minister Nguyen Tan Dzung, representatives of the National Assembly, the Central Office and various Commissions of the CPV Central Committee, the President’s Office, the Government’s Office, the National Financial Supervisory Commission, ministries and agencies, members of the SBV Management Board and representatives of the SBV departments and entities; Directors of the SBV municipal and provincial branches, Chairmen of the Boards of Directors of credit institutions, the Vietnam Bank for Social Policies, the Vietnam Development Bank, the Deposit Insurance of Vietnam, joint – venture banks in Vietnam, branches of foreign banks in Vietnam, wholly foreign owned banks, finance companies and others. 

In his key note speech, Governor Nguyen Van Binh emphasized that the socio-economic condition in 2013 encountered many difficulties and challenges which directly affected banking operations; however, under the leadership of the Communist Party of Vietnam, the oversight of the National Assembly, the strict guidance of the Government, the close coordination of the relevant ministries and agencies and with the solidarity and efforts of all state employees in the banking industry, the banking sector has successfully fulfilled the assigned tasks.

The SBV Governor said that the banking sector will face many difficulties and challenges in 2014; however, experience, lessons and determination of the banking sector which has been shown in the recent time would be a solid basis for the banking sector to continue striving to fulfill the tasks assigned by the CPV and the Government in 2014. 

As the main presenters of the conference, Ms. Nguyen Thi Hong, Director of the Monetary Policy Department delivered a report on monetary policy management and banking operations in 2013 and directions for 2014; and Mr. Nguyen Huu Nghia delivered a report on the results of supervision in 2013 and key tasks in 2014. (For the full report, please read the press release in the SBV Website on December 19).

In his speech, Mr. Nguyen Dong Tien, Deputy Governor and Chief of the Emulation Committee of the banking industry launched the emulation program on fulfilling the tasks of the banking industry in 2014. This program aims at encouraging all state employees of the banking sector to make their efforts to successfully fulfill the tasks, while heightening the sense of discipline and responsibility. 

On this occasion, Prime Minister Nguyen Tan Dzung awarded Labor Orders of the 2nd and 3rd class to various entities and individuals of the banking sector.

Addressing the conference, Prime Minister Nguyen Tan Dzung spoke highly of the efforts of the banking sector in 2013 in the implementation of resolutions of the National Assembly and the Government in order to continue stabilizing macro-economy, curbing inflation and implementing solutions to remove difficulties, support businesses, promote economic growth, restructure the system of credit institutions and ensure prudent banking operations, thereby, contributing to significantly boosting socio-economic development. Notably, he said, in 2013 the banking sector has taken strict measures of curbing inflation, supporting enterprises to overcome difficulties in order to boost production and business; extending loans for agricultural and rural development, exporters, supporting industries and SMEs; the restructuring of weak banks has been under control to maintain safe and sound banking operations. In particular, he added, the SBV has proactively directed credit institutions to implement measures of mitigating new NPLs , recovering loans and actively resolving NPLs in line with law. As a result, NPLs has tended to slow down considerably. In addition, the year 2013 also marks the initial successful step in the management of the gold market in accordance with the Government’s guidance.

The management of the exchange rate and foreign exchange market has been implemented consistently, reflecting the SBV’s role in regulating the market, contributing to gradually reducing dollarization in the economy, increasing international reserves; the gold market has gradually been stable in line with the guidance of the Government with the improvement of the role of state management and protection of the citizens’ legal right; up to now, the anti-“goldization” roadmap has obtained positive outcomes with the significant prevention of gold speculation and smuggling; and gold bullions have been terminated to be used as means of payment, thereby creating a precondition for mobilizing gold from individuals for the socio-economic development. 

The Prime Minister required the banking industry to take advantage of the achievements obtained in 2013, while taking decisive measures in accordance with the guidelines and policies of the CPV and the Government in stabilizing and developing the economy. He expressed his agreement with the missions and measures that were proposed in the SBV’s reports. He emphasized that the banking sector should decisively deploy the following tasks: Flexibly managing synchronous monetary policy tools in combination with the fiscal policy in order to curb inflation, strengthen macro-economic stability and ensure economic growth at a reasonable rate; Operating interest rates in line with macro-economic developments and the objectives of curbing inflation, facilitating enterprises to get access to bank loans, focusing on credit extension to the priority areas in order to support economic growth; Ensuring the liquidity and prudent banking operations; and Coordinating with the relevant ministries and agencies to effectively support production and business.

Additionally, he required the banking sector to continue flexibly operating the exchange rate and foreign exchange market by market forces, closely managing gold trading , implementing solutions to improve the international balance of payments, increasing international reserves; continuing to synchronously implementing the Government’ directions on restructuring the system of credit institutions in accordance with the set objectives and roadmap; implementing the scheme on resolving NPLs of the system of credit institutions, well organizing the operations of the Vietnam Asset Management Company in order to effectively resolve NPLs; directing credit institutions to proactively reschedule debts, make risk provisioning and utilize provisioning to resolve NPLs; and consolidating and strengthening supervision to ensure safe and sound banking operations. At the same time , he said, it is necessary to continue improving the legal framework of monetary and banking operations in consistence with international practices in order to enhance the effective management of the SBV, and create a consistent legal basis for credit institutions’ implementation, thereby maintaining the stable and prudent baking sector.

He emphasized that the main goals in 2014 will be to strengthen macro-economic stability, curb inflation at a low rate, obtain a higher economic growth rate than that of 2013 and ensure social protection . He expressed his hope that the banking sector will continue to fulfill the set tasks and ensure safe and sound banking operations.

In his closing remarks, the SBV Governor on behalf of the SBV Management Board expressed his sincere thanks to the Government and the Prime Minister for their wholehearted support and guidance to the banking sector. He committed that the whole banking industry will do its best to successfully fulfill its set tasks in 2014.

                                                                                                                             Sources: website of the State Bank of Vietnam