The central bank’s deputy governor, Tran Minh Tuan, told Nhan Dan (People) newspaper in an interview that these measures would help promote stability, security, growth, and crisis prevention.
First, he said, banks must prepare for equitization to become more competitive and profitable. Smaller banks would consolidate at this time.
Second, financial institutions must address their large quantity of bad debts.
Third, banks should tighten control on loans using a borrowers' credit rating system devised by experts.
Fourth, banks must create risk security funds and contribute to the National Reserve Fund.
Fifth, to improve transparency, they must allow monitoring by state agencies and make their financial records public.
Sixth, commercial banks must create a network with other domestic and international financial institutions.
Seventh, more modern banking technologies should be introduced and the security of electronic transactions ensured.
Eighth, banks must plan ahead for challenges they would face during the country's integration into the World Trade Organization.
Finally, preventive measures should be taken to tackle fraud.
If these measures were strictly implemented, commercial banks would have few worries and develop in a sustainable and efficient manner, he assured.
The central bank would keep watch to ensure they were strictly and lawfully enforced, he added.
Source: VNA
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