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
- Vietnam targets 70% of population to have bank accounts in 2022
- Rising petrol prices contribute US$385 million to state budget revenue
- Vietnam looks for UK support in finalizing financial regulations: NA Chairman
- Vietnam c.bank reportedly sells over US$10 billion from FX reserves
- Vietnam Deputy PM expects no disruption to petrol supplies
- Standard Chartered launches new head office in Hanoi
- Central Bank ready to meet market demand for foreign currencies
- C.bank expects Vietnam's inflation to stay below 4% in 2022
- Vietnam’s green, social and sustainability debts total US$1.5 billion in 2021
- Finance ministry proposes drastic cut in environmental protection tax on fuel
Trending
-
Vietnam targets 70% of population to have bank accounts in 2022
-
Ten prestigious Vietnam tech firms 2022 announced
-
Vietnam, S.Korea aim for a US$150 billion trade turnover by 2030
-
Vietnam eyes stock market’s upgrade to emerging status before 2025
-
Vietnam to solidify macro-economic stability: PM
-
Vietnam's National Assembly to legalize commitments at COP26
-
Vietnam looks for UK support in finalizing financial regulations: NA Chairman
-
UK multinationals pledge long-term presence in Vietnam
-
Australian Foreign Minister enjoys Pho ga in Hanoi