The banking sector has set a target of having 12-15 commercial banks apply Basel II standards by 2020 and at least one bank named among the list of the 100 largest banks in Asia.
VOV.VN - The banking sector has set a target of having 12-15 commercial banks apply Basel II standards by 2020 and at least one bank named among the list of the 100 largest banks in Asia.
At the conference.
The goal was released at a conference launching an action plan on implementing the banking development strategy by 2025, with a vision towards 2030, held by the State Bank of Vietnam (SBV) on April 11.
Nguyen Kim Anh, Deputy Governor of the SBV, said that the plan is aimed at modernizing the SBV’s organisation model and operating system in a comprehensive and efficient manner.
It also enables the central bank to implement a number of key prioritised goals on curbing inflation, maintaining macroeconomic stability for the sake of sustainable growth, and ensuring the safe and legal operation of credit institutions (CIs).
Domestic CIs are set to incline towards upholding their key role in credit growth; carrying out their trading activities in a transparent, competitive, and efficient manner; and diversifying their ownership structure, scale, and products.
The scheme aims to gradually reduce the ratio of foreign currency credit to the total credit. More specifically, it looks to slash the ratio of foreign currency credit to the total means of payment to 7.5 per cent by 2020 and 5 per cent by 2030. In a long-term approach, the blueprint is to put an end to foreign currency lending in a bid to handle dollarisation and its effect on the economy by 2030.
The implementation of non-cash payments will also be sped up with the optimal use of automated teller machine (ATM) and point of sale (POS) services. The ratio of cash to total means of payment would be kept at below 10 per cent by 2020 and under 8 per cent by 2025.
The central bank is also looking to cut the ratio of bad debts to below 3 per cent of the total outstanding loans by 2020.
In order to realize the targets, Deputy Governor Anh asked SBV units and CIs to regularly review their performance and the outcomes of implementation with a view of making timely adjustments and setting forth appropriate solutions.
