09/11/2015 14:52 GMT+7 Email Print Like 0

Vietnam expedites drastic banking system’s shake-up

Hanoi, November 9 (VNA) – The State Bank of Vietnam (SBV) and relevant financial organisations need to take drastic measures to push the banking sector’s restructuring process in its final year.

During the process, self-restructuring, and merger and acquisition (M&A) are encouraged among Vietnamese commercial banks, said SBV Deputy Governor Nguyen Thi Hong.

She said SBV will keep track of the progress to tackle arising difficulties and foster comprehensive restructuring while enhancing the credit institutions’ governance capacity through new mechanisms on information transparency, stock market listings, sound internal business policies and the development of risk management systems.

According to economic expert Vu Dinh Anh, the banking system’s competitiveness capacity needs to be ensured not only in the domestic market, but also in foreign markets amid regional and global integration, with various bilateral and multilateral commitments to be implemented after 2015.

He suggested reviewing all restructuring projects since 2011 to assure adjustments are timely while controlling the compliance of legal regulations on rates of personal and organisational ownership in commercial banks.

Meanwhile, former National Financial Supervisory Commission Chairman Le Xuan Nghia said successful bank restructuring relies on integrating deep legal reforms with major renovation in state-owned enterprises, public investment, agriculture and administrative procedures.

The SBV affirmed it will streamline legal frameworks for monetary and banking activities in accordance with Vietnamese practices and international standards.

Achievements from 2011 to 2015 will create a base for developing a modern, sustainable credit institute system that is diverse in ownership and scale to meet the economy’s increasing demands on financial and banking services.