VIETNAM - Restructuring banking system a must

by lexie Sun Nov 13, 2011 10:49 am

November 13, 2011

Restructuring banking system a must

This is one of the three key tasks in the process of restructuring the national economy.

The third conference of the 11th Party Central Committee emphasized that restructuring commercial banks and financial institutions by merging or integrating them into larger ones aims to ensure the healthy operation, liquidity and safety of the banking system. It is urgent to protect the banking system and build up the banking sector’s prestige as well as people’s trust.

Following is the interview given by Nguyen Van Giau, Chairman of the National Assembly (NA) Committee for Economic Affairs to the media on the sidelines of the ongoing second session of the 13th NA.

In the context of the ailing world economy and the national economy facing many difficulties, the third conference of the 11th Party Central Committee underscored the important task of restructuring the Vietnamese economy comprehensively. Do you think there are strong measures to achieve this?

The 11th Party Central Committee identified nine groups of measures to curb inflation, stabilize the macroeconomy and restructure the national economy by improving investment sectors with a focus on three categories: public investment, private-run investment and foreign-invested areas. In particular, the financial and banking sector will focus on restructuring banks, economic groups and State-owned corporations.

Ministries and sectors will have to coordinate closely in calling on businesses, groups and private-run economic organizations to implement these measures properly in line with Government instructions.

Many NA deputies have maintained that restructuring the banking system was tabled and approved in haste without having a clear and specific legal corridor. What is your opinion?

To have banks restructured effectively in line with practicalities, the Vietnamese Government must arrive at a clear-cut solution with the support of a transparent legal system for the NA to consider and approve at the upcoming third session.

Is it feasible to dissolve and merge banks when many are not prepared psychologically for such restructuring?

Restructuring the banking system to ensure its healthy operation, liquidity and safety must be associated with depositors’ interests. So every bank is required to enter the fray.

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