On the afternoon of June 10, the National Assembly held a discussion in the hall on the Law on Credit Institutions (amended). The draft Law on Credit Institutions (amended) is one of nine draft laws that the National Assembly commented on at its 5th session.
Participating in the discussion session, delegate Trinh Xuan An (Dong Nai delegation) emphasized that the credit sector plays a very important role, related to all sectors, so amending the Law on Credit Institutions is extremely necessary, especially at the present time.
Mr. An stated that in the explanation and questioning sessions, the Governor of the State Bank often mentioned risk prevention, and the draft law also has many regulations to prevent risks for the banking system.
“This is a very important content, specifically regulated in the Law on Credit Institutions. The State Bank of Vietnam has also issued many circulars on this content, the designs in the draft also contribute to risk prevention for banks and specific credit institutions,” said Mr. An.
Delegate Trinh Xuan An (Photo: Quochoi.vn).
However, the delegate suggested adding more content to prevent risks for the system. From the recent events of SCB bank or around the world, the delegate said that it is necessary to design more regulations to prevent systemic risks, so that when an incident occurs, the system can effectively cope.
Notably, delegate Trinh Xuan An emphasized the handling of cross-ownership related to credit institutions.
“The problem is not to limit, but to end cross-ownership in the credit system. This is a very difficult problem, the provisions in Article 55 and Article 127 of the draft are not strong enough to end cross-ownership,” the delegate pointed out, saying that the solutions in the draft law are still passive and ineffective.
Emphasizing that ending cross-ownership is related to publicity, transparency, and strict handling of organizations and individuals who violate the law, delegate Trinh Xuan An said that it is necessary to consider and redesign the model of financial supervision and inspection agencies related to banks to more effectively resolve this issue.
Similarly, delegate Nguyen Hai Trung (Hanoi delegation) said that cross-ownership and manipulation of group interests in the banking sector are still worrisome issues.
The draft law amending and adjusting to reduce the ownership ratio of individuals and organizations, increasing the public nature of credit institutions and expanding the scope of related subjects is necessary. However, Mr. Trung said that the solutions mentioned in the draft are only technical solutions to limit large shareholders.
Delegate Nguyen Hai Trung (Photo: Quochoi.vn).
Delegate Nguyen Hai Trung said that it is necessary to conduct additional research on two issues. First, to add more regulations and strengthen the role of the State Bank to limit the abuse of power by major shareholders and executive management to manipulate the operations of credit institutions.
Second, it is necessary to research and propose additional measures and solutions to manage and control the circumvention of the law, using many other legal entities to stand in the name of shareholders to create large shareholder groups to operate credit institutions.
Previously, when participating in the discussion group on the Law on Credit Institutions (amended) on the afternoon of June 5, National Assembly Chairman Vuong Dinh Hue acknowledged that the Law on Credit Institutions is like a set of laws so that all actions of credit institutions must be based on this law.
Accordingly, the contributions of the banking industry in recent times have been enormous, however, reality has required restructuring, handling weak credit institutions as well as cross-ownership in banks.
"This Central Resolution says to end cross-ownership between banks, it is that strong, not to mention restrictions anymore," the National Assembly Chairman clearly stated .
Source
Comment (0)