This morning, November 11, continuing the 8th session, under the chairmanship of National Assembly Chairman Tran Thanh Man, the National Assembly conducted questions and answers on a group of issues related to the banking sector.
Questioning the Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong, delegate Ha Sy Dong, Standing Vice Chairman of the People's Committee of Quang Tri province, said that the coordination between fiscal policy and monetary policy in managing the macro economy is extremely important. Given the current state of the state treasury's cash flow into and out of the banking system in recent years, especially at sensitive times when exchange rate pressure is tense, the delegate asked the Governor to assess the coordination between the SBV, the Ministry of Finance and the State Treasury to best manage monetary policy.
Delegate Ha Sy Dong questions State Bank Governor Nguyen Thi Hong - Photo: NL
Regarding the Social Insurance Fund (SIF), which is using 1.2 million billion VND to participate in the government bond market, delegates assessed that SIF is a large-scale investor, dominating the government bond market, and is currently a major competitor of all credit institutions in this market. It is estimated that up to now, the market share of the entire credit institution system is 46%, with SIF alone accounting for nearly 40% (not counting the amount of book-recorded bonds that the Ministry of Finance has accepted in the past).
According to the delegate, of the total capital of about 1.3 million billion VND of the Social Insurance, up to 1.2 million billion VND, accounting for about 92%, has been used to invest in Vietnamese Government bonds. He requested the Governor of the State Bank to assess the liquidity risk, market risk of the assets that the Social Insurance is holding as well as the mission of ensuring social security of the Vietnam Social Insurance agency.
Responding to the question of delegate Ha Sy Dong, Governor of the State Bank of Vietnam Nguyen Thi Hong said that according to the law, the State Bank is the bank that provides services to the Government, and the Government's deposits are deposited at the State Bank of Vietnam. However, according to the Budget Law, the State Bank of Vietnam's funds are allowed to be deposited at banks in the system.
Through assessing the practical situation, Governor Nguyen Thi Hong said that previously, unused deposits at the State Treasury were mainly deposited at commercial banks, but in recent years, 80% were mainly deposited at the State Bank. This deposit also has an impact on banking operations and monetary policy management. At the same time, large deposits in the banking system will have an impact on the system when used.
Therefore, in recent times, the State Bank and the Ministry of Finance have had coordination regulations and regularly exchanged information so that the State Bank can proactively regulate currency. For credit institutions, it is necessary to grasp information on budget revenues and expenditures in large volumes in a short period of time so that credit institutions themselves can proactively regulate currency.
To avoid the situation where banks use the loan funds but cannot collect the debt and face risks, Governor Nguyen Thi Hong said that according to current law, this amount of money cannot be used for lending. However, indirectly, this amount of money will support credit institutions (CIs) in balancing and ensuring their liquidity. Therefore, it is necessary to closely monitor and not be subjective, and have reasonable coordination to ensure that each CI balances its capital safely for its operations.
Also participating in questioning the Governor of the State Bank, delegate Ho Thi Minh, Deputy Head of the Ethnic Minorities Committee of Quang Tri province, asked how the State Bank will handle the situation of "running around" for credit growth by some credit institutions and what solutions are there to limit credit risks in the real estate sector?
Delegate Ho Thi Minh questions a group of issues about the banking sector - Photo: NL
Responding to questions, the Governor of the State Bank of Vietnam said that the State Bank of Vietnam performs two functions: operating monetary policy, contributing to controlling inflation, stabilizing the macro economy and stabilizing the foreign exchange market, but has an additional function of state management of monetary and banking activities.
Therefore, the management goal of the State Bank must contribute to controlling inflation, stabilizing the macro economy but must ensure the safety of the banking system's operations, in which the safety of the banking system's operations is the issue that must be put first and foremost. Because, if the system of credit institutions has potential risks, there will be huge consequences for the economy due to its spreading impact. Therefore, based on actual developments and over the past many years, the State Bank has decided to use the credit room tool to limit credit.
The Governor of the State Bank of Vietnam said that Vietnam's credit growth is characterized by capital relying heavily on the banking system, so there was a period when the average credit growth of the entire system was over 30%, and in some years it increased by over 50%, leading to consequences and risks for the banking system, especially weak banks that mobilize short-term capital but lend medium and long-term.
The State Bank of Vietnam has applied credit limits for management. When allocating and announcing credit limits to credit institutions, the State Bank must evaluate them based on the credit institutions' ratings. Along with that, the State Bank regularly monitors and warns credit institutions with high growth and potential risks.
Nguyen Ly - Cam Nhung
Source: https://baoquangtri.vn/dai-bieu-quoc-hoi-tinh-quang-tri-chat-van-nhom-van-de-ve-linh-vuc-ngan-hang-189644.htm
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