Vietnam to promote banking stability: report

The State Bank of Vietnam plans to ensure the health of Vietnamese financial institutions with a new 9-step strategy which will promote four banking principles: stability, security, growth and crisis prevention, local newspaper Vietnam News reported Thursday.

First, banks must prepare for equitization to become more competitive and profitable.

Second, financial institutions must address large debts their customers have not paid back.

Third, banks should tighten controls on loans. To do this, financial experts have proposed using a system to rate borrowers' credit.

Fourth, banks must create financial risk security funds and contribute to the National Reserve Fund.

Fifth, to improve transparency, they must allow monitoring by state-run agencies and make their financial records public.

Sixth, commercial banks must create a network with other financial institutions domestically and internationally.

Seventh, more modern banking technologies should be introduced and the security of electronic transactions ensured.

Eighth, banks must plan ahead for challenges they will face during the country's integration into the World Trade Organization.

Ninth, preventive measures should be taken to battle fraud.

The state bank, Vietnam's central bank, will monitor and evaluate the activities to make sure that they are strictly and lawfully enforced, said the bank's deputy governor Tran Minh Tuan.

Source: Xinhua