Consider reducing the number if there are many banks but they do not contribute much to development.

Along with that, many opinions say that there should be stronger measures in supervising credit institutions to limit cross-ownership, manipulation, and backdoors of credit institutions.

The Ho Chi Minh City National Assembly Delegation discussed and gave comments on the draft Law on Credit Institutions on the afternoon of June 5. Photo: QUANG PHUC

Delegate Duong Ngoc Hai (HCMC) agreed that this amendment to the law would contribute to making credit institutions operate safely and healthily, ensuring the supply of capital to the market; overcoming shortcomings and limitations in the operations of credit institutions, as well as in management and operation. In addition, the delegate proposed to add a number of prohibited acts in the operations of credit institutions such as corporate bond brokerage not in accordance with the law; acts of enticing and forcing customers to buy insurance products when borrowing capital, etc.

Delegate Nguyen Minh Duc gives comments at the group. Photo: QUANG PHUC

Referring to the fact that bank lending interest rates are still very high, delegate Tran Hoang Ngan said that this makes businesses very upset. The delegate agreed that there must be specific regulations on solutions to improve the operational efficiency of credit institutions related to governance and system operation to limit the manipulation of credit institutions, cross-ownership, etc.

Along with that, the delegate mentioned the need to regulate early intervention by the State Bank for weak credit institutions.

Delegate Duong Ngoc Hai proposed adding a number of prohibited acts. Photo: QUANG PHUC

According to delegate Duong Ngoc Hai, the draft only mentions external measures such as support from the State Bank, while internal measures from within credit institutions have not been mentioned. Therefore, the delegate proposed to add more solutions and measures for credit institutions that are subject to mass withdrawals. These include measures to handle credit institutions that allow mass withdrawals to occur...

Agreeing with the above opinion, delegate Le Minh Tri said that it is necessary to focus on measures to prevent violations from occurring at credit institutions.

Along with that, delegates recognized the boom of joint stock commercial banks, the complicated situation of cross-ownership leading to unhealthy competition. Therefore, the requirements are set in how to manage and control credit institutions to be stable, compete healthily, and serve economic development.

Delegate Le Minh Tri emphasized early and remote prevention solutions. Photo: QUANG PHUC

Agreeing with the inspection, examination and supervision of banks that provide internal loans, delegate Tran Hoang Ngan emphasized the need for regulations to assign responsibility to the team performing the inspection and examination work; strengthening remote supervision with standardized data, payment rates, cash flow, bad debt, etc.

According to the delegate, it is impossible to let a situation happen where an inspection concludes that the bank is operating well, but then the bank falls into a weak state, or even "dies".

Delegate Tran Hoang Ngan suggested that the opening of bank accounts should be more stringent. Photo: QUANG PHUC

In response to this opinion, delegate Le Minh Tri said that in the coming time, it is necessary to consider a roadmap to reduce the number of joint stock commercial banks if the number of banks is large but does not contribute much to economic development.

Currently, banks mobilize capital and money from people but use that money to lend to businesses in their ecosystem. According to the delegate, when inspecting and checking, they discovered cross-ownership and lending to businesses in the ecosystem that belong to their bank or to businesses owned by the bank owner. This is contrary to ensuring the public nature of credit institutions and does not serve socio-economic development. Therefore, the delegate proposed to review and supplement and amend regulations to prevent cross-ownership and manipulation of credit institutions...

Delegate Truong Trong Nghia gives comments at the discussion group. Photo: QUANG PHUC

Regarding the regulation on selling bad debt, delegate Duong Ngoc Hai said that the regulation on selling bad debt at market price is very difficult to apply in practice because market price is difficult to determine and not popular, while in reality there are many violations related to market pricing.

Regarding the regulation on the State Bank's authority to investigate violations of the law in the banking sector, delegate Duong Ngoc Hai disagreed with this regulation.

The delegate said that the authority to investigate violations and cases related to this field has been stipulated in other laws and these are all investigative agencies with expertise and practical experience. Meanwhile, cases occurring in the banking sector are very complicated, so assigning the State Bank the authority to investigate is not appropriate.

National Assembly Delegate Tran Kim Yen proposed adding regulations to allow microfinance institutions to open payment accounts for customers. Photo: QUANG PHUC

Delegate Van Thi Bach Tuyet further noted that it is necessary to review with other laws so that this draft law is passed and promulgated to ensure compatibility and consistency with other laws.

Delegate Tran Kim Yen said it is necessary to add more regulations so that microfinance institutions can open payment accounts for customers if they meet the conditions of the State Bank. At the same time, she suggested adding that microfinance institutions can provide community services to improve social security conditions for people and customers.

Source: https://www.sggp.org.vn/can-tinh-den-viec-giam-so-luong-neu-ngan-hang-nhieu-nhung-khong-dong-gop-nhieu-cho-phat-trien-post692536.html