THE GOVERNOR OF THE STATE BANK OF VIETNAM (SBV) HAS ISSUED DIRECTIVE NO. 01/CT-NHNN ON ORGANIZING THE IMPLEMENTATION OF KEY TASKS OF THE BANKING INDUSTRY IN 2021

THE GOVERNOR OF THE STATE BANK OF VIETNAM (SBV) HAS ISSUED DIRECTIVE NO. 01/CT-NHNN ON ORGANIZING THE IMPLEMENTATION OF KEY TASKS OF THE BANKING INDUSTRY IN 2021

The Directive clearly states the general goals and tasks of the Banking industry in 2021, including:

1- Proactively and flexibly operate monetary policy, closely coordinate with fiscal policy and other macroeconomic policies to control inflation according to the 2021 target of about 4% on average, support macroeconomic stability, contribute to economic growth recovery, maintain stability in the money and foreign exchange markets. In 2021, the orientation is for total means of payment to increase by about 12%; credit growth rate is about 12% and will be adjusted in accordance with developments and actual situations. Reasonable credit growth associated with improving credit quality, focusing on production sectors and priority sectors. Tightly control credit in potentially risky sectors. Continue to remove credit difficulties for people and businesses affected by natural disasters and epidemics.

Synchronously deploy solutions on foreign exchange management to contribute to stabilizing the foreign exchange market and the gold market, gradually transforming them into capital sources for production and business activities, supporting monetary policy management, stabilizing the macro economy; increasing the State foreign exchange reserves when market conditions are favorable.

2- Continue to implement solutions to restructure the system of credit institutions (CIs), especially weak CIs. Actively deploy measures to handle bad debts, control and limit the occurrence of new bad debts. Strengthen and rectify the operations of the People's Credit Fund (PCF) system, ensuring that operations are in accordance with their principles and purposes. Strengthen the inspection and supervision of CIs' operations, especially in areas with high potential risks, ensuring safety and compliance with legal regulations.

3- Promote non-cash payments (TTKDTM), digital transformation in banking activities, innovate and upgrade information technology infrastructure, expand the digital ecosystem to develop banking products and services. Monitor payment systems to ensure safe and effective operations; monitor the provision of intermediary payment services to ensure compliance with legal regulations; enhance security and safety in electronic payments and card payments. Continue to improve the legal framework, mechanisms and policies on payments to ensure consistency, respond to rapid changes in technology and the development of new payment models and services.

4- Focus on effectively and substantially implementing administrative reforms (AR) to create a more open and favorable business environment in general and in the monetary and banking sectors in particular, supporting the promotion of production and business development; improving the effectiveness and efficiency of state management and the quality of cadres, civil servants and public employees, ensuring discipline, order and the rule of law.

5- Continue to implement the Strategy for Development of Vietnam's Banking Industry to 2025, with a vision to 2030; National Strategy for Inclusive Finance to 2025, with a vision to 2030; issued Programs/Action Plans and Projects of the Industry.

To successfully implement the above general goals and tasks, the Governor of the State Bank requested units at the State Bank headquarters to advise the Governor and proactively deploy solutions according to the functions and tasks of the units, focusing on the following key tasks: Completing the legal framework in the monetary and banking sector; operating monetary, credit, foreign exchange and gold policies; restructuring credit institutions in conjunction with handling bad debts; strengthening inspection and supervision; preventing and combating violations of the law in the banking sector; consolidating the operation of the People's Credit Fund system, handling weak People's Credit Funds and strengthening the management and supervision of microfinance institutions; promoting e-commerce; promoting digital transformation in banking activities; ensuring security and safety of information technology activities, electronic payments, and card payments; promoting administrative reform; strengthening administrative discipline and order; reforming civil service and streamlining the apparatus.

The Directive also clearly states that for credit institutions: Organize the implementation of monetary, credit and foreign exchange solutions; implement the restructuring plan associated with bad debt handling; strengthen internal inspection, control and audit work; improve governance, management and risk management capacity; prevent and combat violations of the law in the banking sector; develop modern payment services; promote digital transformation in banking activities; ensure security and safety of information technology and payment systems; strengthen policy communication, new monetary and banking policy mechanisms; be responsible for implementing financial education and training programs to improve public and people's knowledge about currency, banking activities, banking products and services.