Such a move would help ensure transparency and openness in banking operations while staying in line with Basel II standards and other international practices.
The National Assembly (NA) approved a resolution on the interpellation of the third session on June 16, which called for the Government to consider abolishing the credit quota policy for commercial banks.
Customers at a BIDV branch in Hanoi. Photo: The Hanoi Times |
In this regard, the NA wanted the Government to set up criteria that help banks to identify their respective credit targets based on business performance, financial, and governance capabilities.
According to the resolution, such a move would help ensure transparency and openness in banking operations, while staying in line with Basel II standards [It requires banks to have a capital adequacy ratio (CAR) of at least 8%] and other international practices.
In a discussion session on June 8, several NA deputies questioned the Governor of the State Bank of Vietnam Nguyen Thi Hong on the credit quota policy as this is no longer a common practice applied by countries around the world.
In Vietnam, the SBV has adopted such a policy for more than a decade and it would help control credit that could otherwise present a high risk of liquidity loss in the banking sector.
Meanwhile, the NA also called for the Government to soon mobilize resources for the socio-economic recovery program for the 2022-2023 period, estimated to be around US$15.4 billion, along with solutions to contain inflation and rising prices of strategic commodities under state administration.
The resolution stressed the necessity to revise regulations on corporate bond issuance via placement, and prevent banks’ credit from going into fields of high risk, such as real estate and the stock market.
Other News
- Building Hanoi's smart city with smart banking
- Vietnam stock market clears major legal hurdle to potential upgrade
- Cashless parking in Hanoi: Good model fuels smart transport
- Banking sector dominates Vietnam’s corporate bond market
- Prime Minister expects lending to grow by 15% this year
- Vietnam, Singapore strengthen partnership in stock exchange operations
- HSBC raises Vietnam’s GDP growth forecast to 6.5% in 2024
- Hanoi to push for smart tax agency
- Taxes revenue from online shopping in Vietnam nearly triple in H1
- Banks inject over US$20 billion into economy in June, surpassing five-month total
Trending
-
Capital Law to make Hanoi major center for quality education
-
Vietnam news in brief - November 4
-
Hiring multitaskers: Priority for Hanoi companies
-
Hanoi seeks partnerships to build skilled workforce for digital transformation
-
Adorable baby hippo wows Hanoi visitors
-
Localizing idols: Vietnam’s shift from Hallyu to homegrown stars
-
Hanoi plans major upgrade for iHaNoi by 2026
-
Berlin Film Festival award-winning motion picture premieres in Vietnam
-
Love triangle drama opens Hanoi Open Stage Festival