State Bank of Vietnam Governor Nguyen Van Binh will announce thismonth new rules governing the restructuring of the banking sector.
Some 17 SBV circulars and other documents will be issued in Junecovering a variety of matters including credit institution rankings andreorganisation – particularly mergers and acquisitions (M&A).
The circulars will regulate the M&A activities of banks, financial institutions, leasing companies and credit funds.
The governor will also make announcements on risk assessments,co-ordination between the central bank and the Ministry of Finance, andon preferential interest rates for some organisations and individuals.
The SBV said one of its key tasks this year is to step up inspectionsand supervision of credit institutions to make sure they are secure andconform with monetary and banking laws.
It will closelyobserve the liquidity and credit growth of the entire banking system togradually reduce the number of vulnerable institutions.
These matters are already mentioned in the central bank's Directive No01 issued in the first quarter on ensuring bank security and efficiency,in accordance with the Government's socio-economic development goalsfor 2012.
SBV deputy governor Le Minh Hung toldvneconomy.vn that recent positive signs in the economy have enabled thecentral bank to be more flexible.
He added thatmacro-level factors have shown improvement, with inflation returning tothe single-digit level, interest rates gradually falling and lendingrates declining.
The website quoted Louis Taylor, generaldirector of Standard Chartered Bank in Vietnam , as saying confidencein the domestic banking system has improved due to good liquiditymanagement.
However, he said many banking issues have notbeen resolved, and that SBV's policies should have been more closelyattuned to market developments. Policies for exchange rates, foreignexchange and derivatives are now of major interest, he said.
The director added that these shortcomings are understandable given the need to stabilise the economy.-VNA
Some 17 SBV circulars and other documents will be issued in Junecovering a variety of matters including credit institution rankings andreorganisation – particularly mergers and acquisitions (M&A).
The circulars will regulate the M&A activities of banks, financial institutions, leasing companies and credit funds.
The governor will also make announcements on risk assessments,co-ordination between the central bank and the Ministry of Finance, andon preferential interest rates for some organisations and individuals.
The SBV said one of its key tasks this year is to step up inspectionsand supervision of credit institutions to make sure they are secure andconform with monetary and banking laws.
It will closelyobserve the liquidity and credit growth of the entire banking system togradually reduce the number of vulnerable institutions.
These matters are already mentioned in the central bank's Directive No01 issued in the first quarter on ensuring bank security and efficiency,in accordance with the Government's socio-economic development goalsfor 2012.
SBV deputy governor Le Minh Hung toldvneconomy.vn that recent positive signs in the economy have enabled thecentral bank to be more flexible.
He added thatmacro-level factors have shown improvement, with inflation returning tothe single-digit level, interest rates gradually falling and lendingrates declining.
The website quoted Louis Taylor, generaldirector of Standard Chartered Bank in Vietnam , as saying confidencein the domestic banking system has improved due to good liquiditymanagement.
However, he said many banking issues have notbeen resolved, and that SBV's policies should have been more closelyattuned to market developments. Policies for exchange rates, foreignexchange and derivatives are now of major interest, he said.
The director added that these shortcomings are understandable given the need to stabilise the economy.-VNA
