VIETNAM - Central Bank Proposes 7 Measures to Restructure the Banking System

by lexie Wed Dec 07, 2011 12:08 pm

December 7, 2011

Central Bank Proposes 7 Measures to Restructure the Banking System

Governor of the State Bank of Vietnam, Nguyen Van Binh, specified 7 packages of measures to restructure the banking system in the period from 2011 to 2015 at the Consultative Group Meeting on Dec 6. Specifically, restructuring measures to be implemented in the coming time are as follows.

(1) Finalize and apply new management standards as well as safety and risk control regulations in line with international practices; and enhance the supervision of the central bank during the implementation of these standards.

(2) Develop mechanisms and issue policies to facilitate the development and enhance the competitiveness of commercial banks in both domestic and international markets; and encourage banks to serve agriculture and rural areas.

(3) Equitize state-owned commercial banks; improve their financial capacity, management capability, service quality, competitiveness and operational performance.

(4) Supplement and perfect the regulations for joint-stock commercial banks to improve their management quality and operational transparency; specify the minimum capital requirements and appropriate roadmap for banks of different scales and areas to increase capital.

(5) Develop specific plans to quickly reduce the number of weak banks at minimum costs, ensure safety of the banking system, protect the rights of depositors and strictly deal with violations.

(6) Strengthen and promote the efficiency of credit institutions in rural areas.

(7) Effectively coordinate restructuring of the banking system with restructuring and developing other segments of the financial markets such as the stock market, bond market, insurance market, and investment funds to meet the capital needs of the economy.

http://www.vietfinancenews.com/2011/12/central-bank-proposes-7-measures-to.html