Chỉ thị 01/CT-NHNN

DIRECTIVE

ORGANIZATION OF PERFORMANCE OF PRIMARY TASKS OF BANKING SECTOR IN 2022

Implement Resolution No. 32/2021/QH15 dated November 12, 2021, Resolution No. 41/2021/QH15 dated November 13, 2021 of the National Assembly, Resolution No. 01/NQ-CP dated January 8, 2022 and Resolution No. 02/NQ-CP dated January 10, 2022 of the Government, Resolution No. 23-NQ/BCSD dated December 31, 2021 of the Civil Affairs Committee of Communist Party of the State Bank of Vietnam, Governor of State Bank of Vietnam requests entities affiliated to the SBV and credit institutions, foreign bank branches (hereinafter referred to as “credit institutions”) to successfully implement solutions for regulation of monetary policies and banking operations in 2022 to control inflation, sustain macroeconomic development, assist economic development, ensure safe and stable development of credit institution systems. To be specific:

I. GENERAL OBJECTIVES AND TASKS

1. Regulate monetary policies actively, flexibly and strictly cooperate with fiscal policies and other macroeconomic policies to control average inflation at about 4% according to objectives in 2022, sustain macroeconomic development, assist economic development, promptly adapt to domestic and foreign market development. In 2022, credit increases by approximately 14%, with adjustment in accordance with practical situations.

Synchronously implement appropriate solutions to contribute to stabilization of the foreign currency market and gold market, assist the regulation of monetary policies; increase the foreign exchange reserves when market conditions are favorable and convert capital sources into production/trading activities.

2. Implement solutions to reasonably control credit growth and scale, focus on production and trade, sectors prioritized according to the Government's policy, assist socio-economic recovery and development; continue to strictly control credit for potential risks. Continue to synchronously implement solutions to assist people and enterprises affected by the Covid-19, natural disasters and epidemics.

3. Continue to restructure the system of credit institutions according to the “scheme for restructuring systems of credit institutions associated with settlement of bad debts in 2021-2025” after it is approved, focus on dealing with underperforming credit institutions; develop a system of credit institutions that have healthy, quality, efficient, open and transparent operations, meet the standards of banking safety in accordance with the law and approach international practices.

Promote the implementation of solutions to control and settle bad debts; minimize new bad debts; maintain non-performing loan ratio at a safe level (below 3%); prevent cross-investment, cross-ownership and manipulative and dominant ownership in relevant credit institutions. Increase inspection and supervision of operations of credit institutions, especially in sectors with high potential risks.

4. Focus on promoting digitalization in banking operations and cashless payment activities. Complete legal framework, mechanisms and policies, facilitate digitalization of the banking sector, promote cashless payment, meet the requirements for new business models and service products as the basis for information technology, digital banking, digital payment. Strengthen security and safety in payment and digitalization.

5. Continue to complete the system of legislative documents on banking operations to improve the effectiveness and efficiency of state management and discipline, ensure uniformity and compliance with the legal system and international commitments.

6. Promote administrative reform, improve the business environment, assist people and enterprises. Improve the quality of the officials, public employees and employees, ensure administrative discipline.

7. Continue to effectively implement the Development Strategy of Vietnam Banking Sector by 2025, with orientations toward 2030; the national financial inclusion strategy through 2025, with orientations toward 2030; programs/action plans and schemes that the banking sector provided.

II. FOR UNITS AFFILIATED TO THE CENTRAL STATE BANK

Actively provide advice for Governor of the State Bank of Vietnam on implementing solutions according to functions and tasks of the entities, which focus on following primary tasks:

1. Complete legal framework for banking operation

Continue to complete banking legal institutions; proactively review, amend mechanisms, policies, and legal regulations on banking operations in accordance with reality, focus on following primary tasks:

1.1. Develop the Law on Anti-money Laundering (amended). Review/assess and consider amendments to the Law on the State Bank of Vietnam, the Law on Credit Institutions. Complete documentation for proposing extension of Resolution 42/2017/QH14 on pilot settlement of bad debts of credit institutions; documentation for formulation of Law on amendments to Law on Deposit Insurance.

1.2. Continue to research and complete the legal framework for regulation of monetary policy, credit and foreign exchange management in order to ensure practicality and meet the requirements of management.

1.3. Complete the legal framework for inspection and supervision, regulations on safety of banking operations, regulations on safe and strict governance, administration and risk management of credit institutions... in accordance with the actual operations of the credit institutions and international practices and standards. Research and promulgate criteria to apply Basel II (according to advanced methods) or Basel III.

1.4. Continue to complete the legal basis, mechanisms and policies on financial stability, macro-prudential safety and macro-prudential tools in order to prevent systemic risks and minimize negative impacts on economy, ensure synchronization, successfully meet the requirements for state management of monetary and banking operations

1.5 Continue to review, amend and complete the system of legislative documents on restructuring and settlement of bad debts of credit institutions, creating uniformity and synchronization in the implementation process.

1.6 Complete regulations on financial management and supervision of state owners at credit institutions, financial institutions and enterprises under the management of the State Bank.

1.7. Complete the legal corridor, mechanisms and policies on payment activities and digitalization in banking operations in order to facilitate the application of information technology to professional activities, provide products and services that are suitable for the development trend of digital banking and digital payment. Review and amend regulations on strict and effective security and safety in payment activities.

1.8. Complete the legal corridor to manage consumer loans activities in accordance with the actual situation, meet requirements of people and limit loansharking.

2. Regulating monetary, credit, foreign exchange and gold policies

2.1. Monitor development of macroeconomic, domestic and international monetary, epidemic situations to operate appropriate tools and solutions in a flexible, synchronized manner to stabilize monetary and foreign exchange markets, control development speed of credit according to objectives. Regulate open market operation according to market developments and assist in stabilizing of monetary market Regulate interest rates according to macro-monetary balances, inflation and monetary policy objectives; encourage credit institutions to continue to reduce costs to reduce lending interest rates to support production/trading. Regulate the exchange rate flexibly and appropriately in order to stabilize the foreign currency market, contribute to macroeconomic development and inflation control. Refinance credit institutions to assist liquidation and granting loans under programs approved by the Government and Prime Minister, assist restructuring of credit institutions and settlement of bad debts.

2.2. Regulate credit to assist economic growth recovery without neglecting to inflation risks. Inform and periodically review, consider revision to credit development target for each credit institution as the basic for operation, financial capacity and healthy credit development capacity; in which, consider prioritizing credit institutions participating in settlement of underperforming credit institutions and credit institutions reducing lending interest rates according to the policy of the Government and the State Bank,... Enable credit institutions and the Banks for Social Policies to successfully implement credit programs and policies under the direction of the Government and the Prime Minister.

Direct credit institutions to develop credit safely, effectively and concentrate credit on business sectors prioritized according to policies of the Government, consumer credit and grant loans with reasonable interest rates, ensure loan safety and compliance with relevant laws, assist socio-economic recovery and development; do not lift credit extension conditions; continue to closely control credit in sectors with high potential risks namely investment, immovable property, stock, build-operate-transfer and build-transfer in traffic, corporate bond, control foreign currency credit that are appropriate for the roadmap to limit dollarization of the economy according to the Government's policy; create favorable conditions for people and enterprises to access to bank credit capital.

Continue to evaluate credit operations applied to sectors, fields, roles, recovery and sustainable development of sectors and fields to direct credit institutions to introduce policies on priorities, assistance and credit concentration. Cooperate with Ministries and central authorities in eliminating obstacles from the implementation of credit programs and policies according to the direction of the Government and the Prime Minister.

2.3. Continue to synchronously implement solutions to manage the gold market according to the Government’s Decree No. 24/2012/ND-CP dated April 3, 2012 and policies and solutions to limit dollarization and goldization in the economy.

Closely monitor limits on taking and repaying foreign loans by enterprises that are not guaranteed by the Government, contribute to maintaining the country's foreign debt safety indicators. Strengthen cooperation with relevant central authorities in the state management of investment activities from foreign countries to Vietnam and vice versa.

2.4. Continue to improve quality of inventory development, analysis and prediction serving planning, directing and regulating monetary policies and banking operations. Closely and effectively cooperate with ministries and relevant entities in providing information and figures to improve quality of preparation, analysis and prediction of international payment balance serving regulation of monetary policies of SBV and macro-prudential regulations of the Government.

3. Increase inspection and supervision; prevention of violations in banking sector; anti-money laundering

3.1. Implement effectively and promptly “Inspection plan in 2022” of SBV in a manner that is appropriate for the epidemic situation. In which, focus on inspecting sectors more vulnerable to emergence of risks, negativity, corruption and violations including credit granting activities, debt restructuring, settlement of bad debt, situation and investment activities in corporate bonds of credit institutions... Strengthen cooperate between the Banking Inspection and Supervision Agency and the State Bank branch Inspectorate and Supervisory Agencies of provinces in the implementation of the Inspection plan.

Increase the administrative inspection applied to the State Bank branches of provinces to assess the compliance with the law and the direction of the Governor of the State Bank in the performance of assigned functions and tasks.

3.2. Improve the effectiveness of macro-prudential and micro-prudential safety supervision, issue early warnings to prevent and limit risks in the operation of credit institutions. Closely supervise credit institutions extending of credit in sectors highly vulnerable to potential risks, sectors with low output growth but high credit growth; restructuring the repayment term, exempting, reducing interest and fees and retaining of debt category to support customers affected by the Covid-19. Strengthen supervision of profit targets, accrued interest, making of provisions, classification of assets of each credit institution and the whole system,...

3.3. Take serious actions as per the law in case credit institutions allow the warned violations to occur or delay rectification of violations. Stringently settle cases of taking advantage of policies to distort the policy on support for overcoming difficulties due to epidemics, natural disasters... Intensify monitoring, expediting, examining, settling post-inspection actions and supervision to ensure stringent implementation of conclusion, recommendations and decisions.

3.4. Standardize the reporting and information system, promote the utilization of the national credit information database and operate, apply technical infrastructure and information technology to improvement of the banking sector inspection and supervision database, implementation of the analysis, assessment, detection and prompt warning of potential risks.

3.5. Improve quality and effectiveness of anti-money laundering, especially the analysis and handling of suspicious transactions. Focus on performing the post-multilateral assessment tasks of Asia/Pacific Group (APG); implement national risk assessment on money laundering and terrorism financing between 2018 and 2022; formulate and submit to the Prime Minister for signing and promulgating the National Plan for anti-money laundering and prevention of terrorism financing in the next period.

3.6. Receive citizens and deal with complaints and denunciations in accordance with the law, prevent complaints and denunciations in banking operations that involve a large number of people or are prolonged or exceed the jurisdiction.

3.7. Strengthen cooperation and sharing of information with functional agencies in inspection and supervision, anti-corruption and anti-criminal activities to promptly prevent and detect violations in the monetary and banking sectors. Strictly settle violations, negative acts and corruption.

4. Restructuring credit institution systems together with settlement of bad debts

4.1. Develop and implement the action plan of the Banking sector for implementation of the Scheme of "Restructuring credit institution systems together with settlement of bad debts between 2021 and 2025" after the Scheme is approved.

4.2. Closely monitor, supervise and direct credit institutions to strictly and effectively implement solutions for restructuring credit institution systems together with settlement of bad debts. Focus on directing the restructuring of underperforming credit institutions;  settle and restructure two underperforming banks in 2022 and continue to develop a plan for settlement of the remaining two banks.

4.3. Continue to settle underperforming non-bank credit institutions; closely cooperate with governing units in settling and restructuring underperforming non-bank credit institutions whose owners/major shareholders are state groups/corporations under the direction of the Prime Minister.

4.4. Continue to consolidate and rectify the operation of the PCF system. Submit to competent authorities for approval for the plan for settlement of People's Credit Funds that are strictly controlled and non-recoverable. Continue to develop the information system for managing and supervising of the People's Credit Fund system, effectively serve the supervision of the State Bank applied to the system. Organize a preliminary summing-up of the implementation of Directive No. 06/CT-TTg dated March 12, 2019 of the Prime Minister.

4.5. Encourage and implement measures for supporting commercial banks that voluntarily participate in settlement of underperforming PCFs. Promote role and responsibility of the Cooperative Bank of Vietnam for linking the PCF system, capital regulation, inspecting, monitoring, and ensuring the safety of the PCF system in accordance with the law.

4.6. Strengthen the management and supervision of the operation of microfinance institutions, ensure that they operate in accordance with the law and prevent potential risks that cause operational insecurity.

4.7. Monitor the development and implementation of the plan for settlement of bad debts of credit institutions, strengthen credit quality control, make risk provisions in accordance with the law; actively implement measures to control and limit bad debts arising in the COVID -19 situation that continues to negatively impact on the economy to bring non-performing loan ratio at a safe level (below 3%.

4.8. Strengthen human resources for Vietnam Asset Management Company (VAMC) in terms of capital, human resources and facilities. Direct VAMC to effectively implement the VAMC Development Strategy by 2025, with orientation towards 2030; promote purchase, sale, settlement of bad debts and Debt Exchange; cooperate with credit institutions in settlement of bad debts, security assets of bad debts purchased with special bonds.

4.9. Promote roles of Deposit Insurance of Vietnam in protecting rights and benefits of persons making deposits; submit to the Prime Minister for approval for the Development Strategy of Deposit Insurance by 2025, with orientation towards 2030.

5. Promote digitalization in banking operations; develop cashless payments; Ensure security and safety in information technology operations, electronic payments and card payments

5.1. Implement the plan for digitalization of the banking sector by 2025, with orientation towards 2030; direct, guide and facilitate the application of digital technology to banking operations for credit institutions; develop digital banking models, strengthen integration and connection between infrastructure, systems and other sectors and fields to expand and develop the digital ecosystem.

5.2. Complete and submit to the Government for promulgation of the Decree on cashless payments, the Decree on the regulatory sandbox for Fintech in the banking sector; promulgate and implement the Development Strategy of Vietnam payment system by 2025 with orientation towards 2030.

Focus on effective implementation of the project on cashless payment development in the period of 2021-2025; cooperate with relevant central authorities in carrying out pilot implementation of using telecommunication accounts to pay for other small services (Mobile Money services).

5.3. Continue to implement programs and policies on exemption and reduction of service fees payment and direct service providers to reduce fees for customers and support people and enterprises in Covid-19 situation.

5.4. Intensify supervision of important payment systems, provision of intermediate payment services; security and safety in payment activities, digitalization and application of information technology to the State Bank. Perform security inspection and assessment of important information systems; promptly warn and recommend risk issues and solutions to strengthen security and safety. Ensure the continuous and safe operation of the interbank electronic payment system.

5.5. Disseminate knowledge, promote information and carry out dissemination of information about the benefits of digital banking products and services and cashless payments for people and enterprises; strengthen measures to protect the legal rights and benefits of customers; promote international cooperation in research and application of technology, innovative and creative achievements to banking operations.

6. Promote administrative reforms to improve business environment and assist people, enterprises; enhance administrative discipline and regulations; reform public affairs, streamline a system and downsize

6.1. Implement strictly, synchronously and effectively all sectors of administrative reform in the entire SBV system according to the Government’s Resolution 76/NQ-CP dated July 15, 2021 on the Overall Program of State Administrative Reform between 2021 and 2030. Continue to promote reform of administrative procedures, lift certain business restrictions; renovate the organization of the OSS mechanism to deal with administrative procedures; digitalize administrative procedures.

6.2. Adopt measures to increase coverage of information application and maintain depth of credit information; apply technology to facilitation to access credit fairly and transparently for people and enterprises.

6.3. Complete and submit to the Government for promulgation of Decree that supersedes Decree No. 16/2017/ND-CP dated February 17, 2017 on functions, tasks, powers and organizational structure of the State Bank; arrange functions, tasks, powers and organizational structure of the units under the State Bank to ensure compactness, effective and efficient operation. Provide guidelines and elaborate new regulations of the Communist Party and Government on official affairs. Stringently implement assessment, selection, planning, allocation, use and assignment according to title standards, official assessment criteria, procedures, regulations and democracy principles to ensure openness, transparency and effectiveness.

6.4. Enhance administrative discipline and regulations; improve public affair culture and ethics of officials, public officials and employees in SBV; improve training and education quality to produce high quality personnel resources of the sector.

7. Other primary tasks

7.1. Actively and flexibly circulate cash in SBV systems for the purpose of meeting requirements for payment of the economy in terms of amount and face value structure; maintain reasonable reserve of cash to satisfy monetary security; strictly implement measures to balance face value structure and improve the quality of money in circulation; improve the legal basis and continue to enhance anti- counterfeit money measures and protection of Vietnamese currency; research and application of specialized machinery and equipment to treasury operation. Complete the cash transaction models of credit institutions.

Strengthen discipline of operation and compliance with regulations on cash transactions and safety of treasury; strengthen the examination, periodical and irregular inspection of monetary and treasury work, assurance about security and safety of assets in the banking sector; impose penalties against collectives and individuals that commit violations.

7.2. Successfully perform the role of representing the State and Government to enhance the image, status, prestige and credibility of Vietnam and the State Bank of Vietnam at monetary and financial institutions, regional/world forums and other international partners. Continue to actively and positively cooperate and integrate internationally, promote bilateral and multilateral cooperation in the banking sector and participate in administer management of international organizations. Act as a bridge between the Government and international financial institutions to mobilize resources in order to proactively respond and overcome the negative impacts of the Covid-19 and directly support the state budget in economic growth recovery; continue to strengthen the mobilization/effective implementation of programs, projects, consulting and technical support from international partners and multilateral and bilateral organizations for Vietnam and the banking sector.

7.3. Strengthen state management of communication activities in the banking sector to create synchronization and uniformity from the central bank to state bank branches of Vietnam in provinces, between the central bank and the press units in the sector and credit institutions. Successfully implement regulations on speech and information provision of the State Bank.

Implement communication activities in a professional and effective manner. Promote policy communication, especially new mechanisms and policies to create public consensus. Effectively carry out financial education to implement the National Financial Inclusion Strategy and the Government's Projects to improve access to banking services for the economy.

7.4. Actively implement and complete the internal audit and inspection plan of SBV in 2022 according to the situation of the Covid-19. Strengthen the application of information technology to internal audit, combine remote inspection and implementation of on-site audit; focus on auditing and inspecting the contents of potential risks.

7.5. Carry out accounting, financial, asset and construction investment management of the State Bank in association with thrift practice, anti-wastefulness, ensuring strict and efficient management of funds, assets and capital resources of the State Bank. Improve the efficiency of management and implementation of public investment capital plans, complete the state budget capital plan that are assigned.

7.6.  Advise and properly implement the rights and responsibilities of the state owner's representative agency at credit institutions, financial institutions and state-invested enterprises under the management of the State Bank. Strengthen the inspection, examination and supervision of the effective capital use of credit institutions and state-invested enterprises.

7.7. Improve the quality and efficiency of operations of service providers. Complete the project on financial autonomy of public service providers affiliated the State Bank, increase revenue and decrease the support rate from the state budget.

7.8. Promote scientific and technological activities in the banking sector, in which focus on catching new trends in banking operations and the ability to apply research products to actual operations of the sector.

7.9. Strengthen the role of the State Bank in financial stability. Research and develop methods, models and tools for macro-prudential safety supervision applied to the financial system; improve analysis and monitoring reporting system, prompt warn systemic risks.

7.10. Strengthen the mechanism for cooperation and share of information and data among the SBV units, between the SBV and domestic and foreign inspection and management agencies regarding banking, securities and insurance to improve efficiency of macro-prudential safety supervision and ensure financial system stability.

7.11. Strengthen the dissemination of information and raise awareness of strict and complete implementation of the regulations of the law and the State Bank on the protection of State secrets; promptly detect, prevent and strictly handle violations according to regulations.

III. FOR STATE BANK BRANCHES OF PROVINCES

1. Organize implementation of monetary, credit and foreign exchange policies in their provinces.

1.1. Successfully provide advice and assist the Governor in state management of currency, credit, foreign exchange and banking operations in their provinces, cities. Promptly acknowledge problems regarding mechanisms and policies, difficulties and obstacles in actual implementation, focus on solving and settling issues under their competence; report to the Governor, propose and advise to amend mechanisms and policies according to reality.

1.2. Cooperate with the provincial authorities in implementing the tasks of the banking sector; promptly advise the provincial Communist Party organizations and local government on measures to manage the operations of credit institutions and settle issues that arise in practical operations, especially when state bank branches of Vietnam in provinces implement credit policies and programs according to the direction of the Government and the Prime Minister.

1.3. Direct, guide, monitor, expedite and supervise local credit institutions implementing monetary and credit measures of the Government and the State Bank. In which, direct credit institutions to: (i) actively and effectively implement the system of policies and measures to support people and enterprises that are affected by natural disasters and epidemics; (ii) actively participate in and effectively and practically implement the Bank-Enterprises Connection Program in the appropriate forms; (iii) grant credit towards production and trade, priority sector to facilitate access to capital for people and enterprises and contribute to limit loansharking.

1.4. Take charge of connection of local credit institutions. Take charge of working with local credit institutions to promptly deal with difficulties and problems in monetary, credit and banking operations.

2. Strengthen inspection and supervision; prevent violations in banking sector; implement restructuring credit institution systems together with settlement of bad debts

2.1. Effectively implement the particular inspection plan in their provinces as the basis for the State Bank's 2022 inspection plan and the management requirement of each province; in which inspect the observance of regulations on restructuring the term of debt payment, exemption and reduction of interest and fees, retention of debt category and making of new loans applied to customers who are affected by Covid-19 of local credit institutions. Improve the quality of micro-prudential safety supervision.

2.2. Strengthen the management, inspection and supervision of consumer loans, loans for personal or living expenses, debt recovery of financial companies, branches, representative offices, service introduction points of local financial companies. Monitor and acknowledge the situation of credit granting of local credit institutions, especially credit of sectors with potential risks, proactively implement appropriate measure to ensure credit safety when detecting unusual fluctuations.

2.3. Closely monitor the implementation of the plan for restructuring local credit institution systems together with settlement of bad debts; request local credit institutions with high bad debts to develop projects and plans for settlement of bad debts and measures to prevent bad debts from arising, classify debts and make risk provisions in accordance with regulations, ensure accurate reflection of the quality of loans.

2.4. Direct local credit institutions to strictly implement the conclusions, recommendations and warnings of the State Bank via inspection and supervision; rectify and handle/propose timely handling of unresolved issues and violations; at the same time, monitor, expedite and inspect the performance results of local credit institutions.

2.5. Strictly implement directing, rectification and guiding documents on licensing, inspection, supervision and restructuring credit institution systems together with settlement of bad debts, ensuring security and safety of bank operations. Strengthen anti-corruption, anti-negativity and anti-criminal activities on banking sector in their provinces. Receive citizens and deal with complaints and denunciations in accordance with the law, prevent complaints and denunciations in banking operations that involve a large number of people or are prolonged or exceed the jurisdiction.

3. Strengthen the management of People's Credit Fund activities.

3.1. Continue to implement and direct People's Credit Funds to strictly implement the regulations and directions of the Prime Minister and the Governor of the State Bank applied to the People's Credit Fund system, especially the direction of Directive No. 06/CT-TTg of the Prime Minister dated March 12, 2019 on strengthening measures to ensure operational safety and firmly consolidate the PCF system; direction of Directive No. 06/CT-NHNN of the Governor of the State Bank dated October 2, 2018 on rectification, strengthening, prevention of violations to ensure security and safety of operations in the PCF system.

3.2. Strengthen the management, consolidation and rectification of People's Credit Funds: (i) Actively and effectively implement inspection and supervision of the operation of People's Credit Funds, especially underperforming PCFs; (ii) Carry out cross-inspection of the People's Credit Fund in other provinces and cities under the instruction of the State Bank and promote micro-prudential inspection of the PCF system; (iii) Review, evaluate and classify PCFs; (iv) Actively cooperate with commercial banks regarding settlement of underperforming PCFs in paying deposits to customers.

3.3. Closely cooperate with local authorities to proactively prevent and settle violations and  insecurity in the operation of the People's Credit Fund system.

4. Promote digitalization in banking operations; develop cashless payments; ensure security and safety in information technology and payment operations

4.1. Effectively implement the assignments on digitalization of the banking sector by 2025, with orientation towards 2030 and projects on development of cashless payment in the period of 2021 - 2025 in their provinces according to actual conditions and situations.

4.2. Inspect, examine, detect and settle violations in payment activities, intermediate payment according to the epidemic situation and the Government's direction regarding inspection and examination. .

4.3. Promote the dissemination of knowledge, information on CTMs, raise awareness and vigilance of local people and enterprises against cyber security risks, tricks, violations and frauds in payment activities, intermediate payment.

4.4. Strictly comply with regulations of the State Bank on information safety and security.

5. Other primary tasks

5.1. Successfully perform cash regulation, ensure uninterrupted cash transaction and fully meet requirements for value and face value structure of local credit institutions and local State Treasury.

Strictly comply with the regulations of the State Bank on safety of the treasury and promote periodical and irregular inspection and supervision of the observance of local credit institutions; strictly settle violations and request for rectification of violations detected after inspection and examination in accordance with law. Actively work and cooperate with local public security in strengthening support for security prevention and settlement of theft and robbery at local branches and local transaction offices of local credit institutions in the area

5.2. Continue to flexibly research and deploy in accordance with the actual situation of the assignments according to the administrative reform plan of the State Bank.

5.3. Carry out thrift practice, anti-wastefulness in management, use of funds, procurement of assets and construction investment with practical and specific measures.

5.4. Promote local communication about the mechanisms and policies of the State Bank and the results of the banking system, ensuring accuracy and timeliness. Acknowledge and explain issues that local people concern and promptly report on appropriate communication plans and projects to the SBV.

Effectively implement the works of the National Assembly; fully participate in contacting local voters, proactively explain and settle opinions and recommendations regarding currency and banking operations; proactively provide information, report, explain, consolidate and strengthen working relationship with provincial Communist Party organizations, local authorities and the National Assembly Delegates.

IV. FOR CREDIT INSTITUTIONS

1. Organize implementation of monetary, credit and foreign exchange measures

1.1. Strictly comply with the regulations and directions of the State Bank on money, foreign exchange, banking operations and assigned targets. Regularly inspect and monitor the compliance throughout the system to promptly rectify and settle violations.

1.2. Develop and implement business and financial plans for 2022 according to measures of regulation of monetary and credit policies and banking operations of the Government and SBV.

1.3. Continue to strictly, practically and effectively implement measures for assisting the people and enterprises to reduce operating costs, profit targets and not pay cash dividends in 2022 in order to continue to reduce lending interest rates. Prioritize support for small and medium-sized enterprises, enterprises that operate in sectors and fields heavily affected by the Covid-19 and enterprises that have good administration systems and are able to successfully recover production and trade.

1.4. Ensure safe credit growth in the entire system, focus on improvement of credit quality, control and settlement of bad debts:

(i) Balance capital sources, direct credit to production and trade, sectors prioritized according to the policy of the Government, loans for personal or living expenses, consumer credit with reasonable interest rates, ensure loan safety and compliance with relevant laws, support socio-economic recovery and development and strictly control credit granting conditions. Develop a variety of bank credit products to meet requirements for legal capital of people and enterprises, contribute to limit loansharking.

(ii) Facilitate access to bank credit capital for customers as the basis for reviewing, simplifying and shortening processes and procedures... along with strictly complying with the provisions of law, controlling credit granting conditions to ensure loan safety when credit institutions expand credit.

(iii) Closely control credit in sectors with high potential risks namely investment, immovable property, stock, build-operate-transfer and build-transfer in traffic, corporate bond, etc.; grant loans in foreign currency according to the policy of the Government and the State Bank of Vietnam on limiting dollarization in the economy.

1.5. Strictly comply with regulations of the law on insurance business; strengthen internal inspection and control of insurance agency activities via the system and strictly settle cases that require customers to purchase insurance policies when credit institutions operating as insurance agents grant credit to customers.

1.6. Actively deploy and strengthen banking-enterprise connection in an appropriate manner. Direct branches of credit institutions to closely cooperate with provincial Communist Party organizations, local authorities, socio-political organizations in carrying out dissemination of information on credit policies to local organizations and individuals; promptly report difficulties and problems in credit relationship with customers to the State Bank branches of provinces and Head Office.

2. Carry out restructuring of the credit institution system together with disposing bad debts

2.1. Effectively implement the Scheme for "Restructuring credit institution systems together with settlement of bad debts between 2021 and 2025",  action plans of the banking sector to implement the scheme and guiding documents of the State Bank .

2.2 Comply with the regulations of law on classification, making of provisions and use of risk provisions for debts at credit institutions. Synchronously and strictly implement measures to limit new bad debts arising in the context that the economy continues to be negatively affected by the Covid-19.

2.3. Promote measures to recover and settle bad debts. Actively cooperate with local authorities and local competent state agencies, especially local public security, courts, and judgment enforcement agencies at all levels in the process of bad debt recovery and settlement of collateral. Closely cooperate with VAMC in purchase, sale and settlement of bad debts, focus on strengthening the settlement of bad debts, bad debts recovery, collateral of bad debts purchased by special bonds.

3. Improve management and administrative capacity; strengthen internal inspection and control; prevent violations in banking sector

3.1. Improve the management, administrative and supervision capacity of the Board of Directors/ Board of Members, Executive Board and Board of Supervisors for the operations of credit institutions. Increase charter capital to strengthen and improve financial capacity.

3.2. Implement pilot to apply Basel II (according to advanced method), Basel III in accordance with the actual condition of each credit institution.

3.3. Disseminate, educate, improve discipline, raise awareness of observance of law and professional ethics of officials and employees throughout the system. Practically and effectively implement internal inspection and control; detect and strictly settle violations in banking operations.

3.4. Inspect and supervise use of loans for the right purposes of customers, assess the repayment ability of customers, especially customers who work in sectors with potentially risks, customers who have big outstanding debts and promptly have appropriate measures to ensure loan safety and limit bad debts arising.

3.5. Strictly comply with  inspection and audit conclusions of the State Bank and relevant agencies, in which overcome and thoroughly settle weakness and violations to ensure system safety. Regularly review, complete, amend, or provide new internal regulations, processes and policies to be consistent with regulations of law, situation and criminal tricks in the banking sector.

3.6. Thoroughly and stringently implement directions of Governor of SBV on anti-corruption, anti-negativity, anti-money laundering and prevention of terrorism financing.

3.7. Continue to focus on restructuring lending, ensuring appropriate interest rate policies and transparent debt collection policies in accordance with the law applied to consumer finance companies. People's credit funds shall strictly comply with regulations of the law on mobilizing and lending activities.

4. Promote digitalization in banking operations; develop cashless payments; ensure security and safety in information technology and payment system.

4.1. Effectively implement the assigned tasks in the digitalization plan of the banking sector and the scheme for cashless payment in the period of 2021-2025. Strictly implement measures to transform business models into applying modern technology and multi-services; digital banking operations, support enterprises and people in access to modern banking services in safe and convenient manners.

Strengthen connections with sectors and fields to expand the digital ecosystem. Provide e-commerce services in e-commerce, public sector, public administration, especially in health and education sectors.

4.2 Strictly comply with legal regulations on payment activities. Innovate and complete internal processes and regulations according to digital technology application. Research and apply measures to prompt detection of fraudulent acts in payment activities; prevent and minimize risk of taking advantage of payment services for illegal activities.

4.3. Focus on infrastructure, techniques and technology investment; apply advanced technology payment measures and international standards to security of information technology systems; continue to thoroughly implement and comply with regulations on information system safety in banking operations specified in Circular 09/2020/TT-NHNN dated October 21, 2020.  Apply basic standards for domestic chip cards according to roadmap.

4.4. Strictly implement measures to ensure safe payment and protect customers against increasingly sophisticated forms and tricks of criminals. In which, focus on popularizing, improving understanding and vigilance for customers; training risk identification and settling skills for officials and employees of the whole system.

4.5. Promptly acknowledge and respond to public opinion with issues regarding payment services of units. Settle risks and frauds arising in accordance with regulations, ensure the interests of the parties; at the same time, report to the SBV and local branches of SBV.

5. Other tasks

5.1. Strictly comply with regulations and directions of the State Bank on delivery, transportation, classification, selection of money, cash balance and safety of the treasury. Actively develop plans for cash collection and expenditure, balance expenditure face value structure for customers in accordance with the regulations of the State Bank and the reality of units, ensure uninterrupted cash transaction, especially at the end of the year.

Strengthen the periodic or irregular inspection of the compliance with regulations on cash operations and safety of treasuries of branches and transaction offices in the system; promptly prevent, overcome weakness and complete internal processes and regulations.

5.2. Strictly comply with regulations and directions of the agency representing the owner in the management and organization of operations of their units; take responsibility for the effective management and use of the allocated state capital applied to credit institutions, financial institutions, state-invested enterprises and representatives of state capital.

5.3. Cooperate with the State Bank branches of provinces in contacting local voters and the National Assembly Delegation to promptly settle difficulties and problems regarding to money, banks, contribute to promotion of socio-economic development in each area throughout the country.

5.4. Actively and strictly communicate guidelines, policy mechanisms on regulation of monetary policy and banking operation management in general and of the unit in particular in order to improve people's understanding and achieve consensus. In which, focus on communicating to customers who have bad debts so that customers understand their legal rights and credit institutions specified in Resolution No. 42/2017/QH14 to better support settlement of bad debts and bad debts recovery.

Actively assess information and issues that people concern regarding the operation of credit institutions, promptly report incidents to the SBV for appropriate measures for settlement. Strengthen the introduction of banking products and services, improve knowledge and skills for customers to reduce risks of using services and protect the benefits of users who use products and services. Participate in the implementation of financial education programs, contribute to people’s financial knowledge improvement and raising of awareness.

V. IMPLEMENTATION

1. This Directive takes effect from the date on which it is signed.

2. Entities affiliated to State bank of Vietnam within their functions and tasks shall implement tasks specified under this Directive; submit reports on directive implementation to Office of State bank of Vietnam when it is requested.

3. Office of State bank of Vietnam shall take charge and cooperate with entities affiliated to SBV in monitoring implementation of directives, submitting reports to Governor of State bank of Vietnam and Ministry of Planning and Investment as prescribed by the Government.

4. Heads of entities affiliated to State Bank of Vietnam, Chairpersons of Boards of Directors, Boards of Members and General Directors of credit institutions are responsible for implementation of this Directive./.

ACTION PLAN FOR IMPLEMENTATION OF RESOLUTION OF NATIONAL ASSEMBLY AND THE GOVERNMENT

(Issued together with Directive No. 01/CT-NHNN dated January 13, 2022)