The government has requested the State Bank of Vietnam to restructure specially controlled banks timely and efficiently according to the Politburo's conclusions, and urgently issue a restructuring plan for Saigon Commercial Bank (SCB).
The request was mentioned in the government's Resolution No. 50/NQ-CP 2023 just issued following the government's monthly meeting with local administrations in March.
In the resolution, the government also assigned the central bank (SBV) to assume prime responsibility for coordinating monetary policy, in harmony with fiscal and other policies; appropriate exchange rate management, contributing to controlling inflation, stabilizing the macro-economy, money market and foreign exchange.
The government requested the SBV to direct credit institutions to grow credit at a reasonable rate, channeling credit toward production and business fields, priority areas and growth drivers; continue to encourage credit institutions to reduce costs, and strive to reduce deposit and lending interest rates.
The main four state-owned commercial banks, including Agribank, BIDV, VietinBank and Vietcombank were directed to implement a credit program of about VND120 trillion ($5.12 billion) to lend to investors and buyers of social housing projects, worker housing, along with renovation and reconstruction projects of old apartment buildings.
The SBV is also responsible for restructuring commercial banks under special control according to the Politburo's conclusions, urgently develop a plan to restructure Saigon Commercial Bank (SCB) according to the Law on Credit Institutions.
The government assigned the central bank to soon amend and supplement Circular No. 16/2021/TT-NHNN regulating the purchase and sale of corporate bonds by credit institutions and foreign bank branches in accordance with legal regulations, enhance transparency, strictly control risks, ensure the safety of the banking system, and contribute to supporting the development of a safe, healthy and efficient corporate bond market.
Last October, the SBV placed SCB under special control over stability concerns. The central bank then said the move was a professional measure to strictly control and limit negative impacts on the private bank and the banking system.
One week earlier, many SCB branches and transaction offices had recorded a run on deposits due to concerns about the bank’s financial health.