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Official Gazette

Friday, August 19, 2022

Banking sector development strategy approved

Updated: 16:29’ - 29/08/2018
Vietnam will have at least two or three banks in Asia’s top 100 largest banks and three to five banks listed on foreign stock markets by 2025.

Such is among the targets set forth in the banking sector development strategy which has been recently approved by Prime Minister under Decision 986/QD-TTg.

The strategy aims at gradually increasing the independence and accountability of the State Bank of Vietnam for the purpose of monitoring the implementation of the monetary policies and controlling inflation at an appropriate level conformable with the socio-economic development orientations in each period, maintaining the macroeconomic stability, and promoting the sustainable economic growth.

Strengthening the institutional capacity, raising the effectiveness and efficiency of the banking inspection and supervision by the State Bank, and extending the inspection and supervision to financial corporations with parent companies being credit institutions are also prime objectives of the strategy.

By the end of 2025, the banking supervision and supervision will conform to most of the Basel principles of effective banking supervision.

Under the strategy, the Government plans to reduce the proportion of cash payment to under 10 percent by 2020 and eight percent by 2025, which can be achieved by expanding the network of automatic teller machines (ATM) and points of sale (POS) nationwide.

The strategy also aims at increasing the number of enterprises and people that have access to financial and banking services provided by credit institutions and focusing on development of services suitable to communities  with little or no access to traditional banking services in rural and remote areas.

The strategy sets a raft of key tasks and solutions, such as perfecting the monetary and banking legal framework on the basis of full compliance with market economy rules, in line with international practice and meeting integration requirements; renovating the monetary policy framework and foreign exchange and gold management; and developing and monitoring important payment systems in the economy, among others.- (VLLF)

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