70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Banking & Finance
Vietnam parliament calls for removing credit quota policy
Ngoc Mai 12:39, 2022/06/17
Such a move would help ensure transparency and openness in banking operations while staying in line with Basel II standards and other international practices.

The National Assembly (NA) approved a resolution on the interpellation of the third session on June 16, which called for the Government to consider abolishing the credit quota policy for commercial banks.

 Customers at a BIDV branch in Hanoi. Photo: The Hanoi Times

In this regard, the NA wanted the Government to set up criteria that help banks to identify their respective credit targets based on business performance, financial, and governance capabilities.

According to the resolution, such a move would help ensure transparency and openness in banking operations, while staying in line with Basel II standards [It requires banks to have a capital adequacy ratio (CAR) of at least 8%] and other international practices.

In a discussion session on June 8, several NA deputies questioned the Governor of the State Bank of Vietnam Nguyen Thi Hong on the credit quota policy as this is no longer a common practice applied by countries around the world.

In Vietnam, the SBV has adopted such a policy for more than a decade and it would help control credit that could otherwise present a high risk of liquidity loss in the banking sector.

Meanwhile, the NA also called for the Government to soon mobilize resources for the socio-economic recovery program for the 2022-2023 period, estimated to be around US$15.4 billion, along with solutions to contain inflation and rising prices of strategic commodities under state administration.

The resolution stressed the necessity to revise regulations on corporate bond issuance via placement, and prevent banks’ credit from going into fields of high risk, such as real estate and the stock market.

TAG: Vietnam National Assembly Vietnam parliament Vietnam banking vietnam credit quota policy
Other news
15:12, 2024/04/04
Vietnam's Central Bank ready to steady foreign exchange market
With more than $100 billion in foreign exchange reserves, the State Bank of Vietnam (SBV) is ready to intervene to stabilize the exchange rate as needed.
14:12, 2024/03/23
Finance ministry clears bottlenecks to pave way for stock market upgrade
One of the key measures is to allow securities companies with sufficient capacity to provide services without requiring foreign investors to have 100% of the funds before placing purchase orders for securities.
22:20, 2024/03/20
Over 60% of Vietnamese use QR codes to pay
Vietnam also leads Southeast Asia in terms of new e-wallet users.
20:39, 2024/03/18
Casinos contribute US$370 million to state budget over 5 years
The number of Vietnamese gamblers is falling.
08:22, 2024/03/13
Standard Chartered and IATA partner to launch IATA Pay in Vietnam
IATA Pay in Vietnam is powered by Standard Chartered’s Straight2Bank Pay.
17:50, 2024/03/07
Vietnam’s capital market shows positive signs: Finance Ministry
The government is planning to set up a capital trading platform for innovative start-ups.