PM Approves Vietnam Banking Development Scheme through 2010

Prime Minister Phan Van Khai has signed a decision to approve a scheme on developing the banking sector through to 2010 and its orientation until 2020.

 

Accordingly, one of the most important points of the scheme is reforming organizations and enhancing the performance of the State Bank of Vietnam (SBV) whereby the central bank is capable of realizing monetary policies following market rules in line with international standards. Hence, by 2010 the central bank will become a modern bank, meeting the standards of Asian central banks.

 

The central bank is mainly liable to stabilize the currency, control inflation, and ensure safety in the monetary and banking system facilitating sustainable socio-economic development.

 

The SBV will enhance the capacity of management in domestic and international forex transactions, as well as take efficient measures to control and limit the outflow of investment capital abroad. In addition, the central bank will liberalize current transactions and gradually loosen control over capital transactions in line with a course to open the financial market.

 

Based on the existing SBV inspection mechanism, the central bank will set up an agency to monitor banking performances; additionally it will establish a modern and efficient banking supervising system to meet the realistic demand for developing Vietnam banking system and follow international principles and standards on supervising banks.

 

The central bank is required to cooperate with relevant ministries and agencies to draw up important projects, including the draft Law on the SBV (new) to replace the Law on the SBV enacted in 1997 and the Law on amending and supplementing some articles of the Law on the SBV enacted in 2003.

 

The central bank is instructed to map out the draft Law on Credit Organizations (new) to replace the Law on Credit Organizations promulgated in 1997 and the Law on amending and supplementing some articles of the Law on Credit Organizations promulgated in 2004; and the draft Law on Savings Deposit Insurance.

 

The decision will become effective in 15 days.
P.V