Banking Sector Focuses on Restructuring
The Prime Minister Nguyen Tan Dung called upon more drastic measures to be taken to speed up the restructuring in the banking system.
The PM hailed the important and direct contributions of the banking sector to the encouraging socio-economic performance outcomes in 2013.
However, the banking sector should deal with the possible obstacles including unstable inflation rate, limited access to credit flows; insecure operation of some credit organizations and potential liquidity risks.
“In 2014, the sector should join hands with other sectors to fulfill the key targets of maintaining the macro-economic stability, controlling inflation rates, achieving a reasonable growth rate and an efficient competitiveness,” said Mr Dung.
He requested that the sector should properly combine the tight monetary policies with fiscal policies and others to keep inflation rate at 6.5-7 percent in 2014; stabilize the exchange rate and regulate appropriate interest rates in favour of business performance, liquidity safety and proper operation of credit organizations.
The SBV must hold an exclusive right to gold import and export and manage the gold market. Commercial banks are prohibited from mobilizing and lending gold, asserted PM Dung.
According to PM Dung, healthy and effective banks should expand operations and contribute to handle non-performing loans (NPLs). Meanwhile, weak banks would have to be restructured.
The Government chief also noted that the SBV should focus on rapidly handing NPLs and strengthen supervision of the banking system.
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