Prime Minister Nguyen Xuan Phuc approved the development strategy of banking sector until 2025, with vision to 2030, according to the government portal.
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The move is aimed to enable the SBV to control the inflation rate in support of stabilizing macro economy, eventually leading to sustainable development.
Additionally, the SBV is also required to enhance institutional capabilities and efficiency in its supervision role.
By the end of 2025, most banks are required to apply Basel II standards - a set of international banking regulations put forth by the Basel Committee on Bank Supervision, which sets minimum capital requirements for banks and requires banks to apply risk management methods.
Moreover, the government is striving to reduce the non-cash payment proportion to less than 10% by 2020 and of 8% by 2025, which can be done by expanding the network of ATM and POS nationwide.
Enterprises and citizens are encouraged to use financial services provided by banks and credit institutions, especially customers in rural and remote areas.
The banking system is set to develop in parallel with the socio-economic conditions in each development phase. Specifically, the banking system will undergo restructuring process in the 2018 - 2020 period, focusing on solving bad debts and weak banks.
In the 2021 - 2025 period, banks are required to enhance their competitiveness, transparency and follow international standards in governance.
Vietnam is expected to have at least 2 - 3 commercial banks in Asia's top 100 largest banks in terms of assets and 3 - 5 banks listed in foreign stock markets by the end of 2025.
Moreover, bad debts ratio in credit institutions is set to be under 3%.
Other targets set forward by the strategy include finalizing legal framework for monetary policies and banks on the basis of market mechanism and international standard; improving foreign currency and gold policy management.
