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Saturday, June 22, 2024

PM tells MPS, SBV to tackle cross-ownership at banks

The Saigon Times

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HCMC – Prime Minister Pham Minh Chinh has directed the Ministry of Public Security (MPS) to work with the State Bank of Vietnam (SBV) to address cross-ownership and manipulation within the banking sector.

Directive No. 14, signed on May 2 by the PM, outlines monetary policy management tasks in 2024, aimed at mitigating irregularities and group interests in the banking sector.

Cross-ownership occurs when one bank holds shares at another, often leading to shareholder groups acquiring majority control, enabling manipulation of bank operations beyond regulated limits.

The PM stressed the importance of preserving the stability and financial security of the banking system.

The directive also emphasizes the need to remove obstacles to production and business, spur growth, and maintain macroeconomic stability.

The SBV is tasked with monitoring global and domestic economic conditions to effectively manage monetary policy, with a focus on managing credit growth to ensure macroeconomic stability and banking safety.

Enhanced oversight of credit disbursement by financial institutions, particularly in the gold market and trading enterprises, is highlighted.

The PM has tasked banks with actively implementing credit growth solutions, directing credit towards production, business, priority sectors, and growth drivers while rigorously controlling credit in risk-prone areas to ensure safety, effectiveness, and liquidity risk control.

Efforts to reduce costs and lower interest rates to reasonable levels are emphasized to benefit businesses and citizens.

Moreover, the Ministry of Finance has been instructed to promptly review and refine regulations related to securities and corporate bonds, and develop the stock market into an effective long-term capital mobilization channel for businesses.

The Ministry of Construction will closely coordinate with relevant ministries, sectors, and localities to implement measures under the Social Housing Development Project, aiming to construct one million social homes.

The Ministry of Natural Resources and Environment should focus on improving the land information system and connecting it with the real estate information system and market in collaboration with the Ministry of Construction.

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