Central Bank Urges Credit Organizations to Heighten Risk-Hedging Steps

The State Bank of Vietnam (SBV) on May 23 issued an instruction to request credit organizations to take solid measures to curb risks in business activities implying that banks are now facing various difficulties and challenges.

 

According to the SBV, credit organizations are placing restrictions on scope, financial capacity and competitiveness capacity, encountering unfavorable impacts of a number of objective factors inside and outside the country.

 

The central bank’s governor asked credit organizations to quickly analyze and assess possible risks in all activities in order to employ measures to prevent risks. Particularly, the governor emphasized selecting and checking the capacity, qualifications and virtuous characters of bank staff.

 

Remarkably, a circulation instructing money-laundering prevention, one of the most important legal documents directly related to risk provision at credit organizations, has not yet been issued although nearly one year has passed since the Decree on Money-laundering Prevention and Control was issued in August 2005.