The Government is assigned to conduct a comprehensive inspection of the life insurance market, especially investment-linked insurance products.
This content was stated in the Joint Resolution of the 5th session, which was voted and passed by the National Assembly on the afternoon of June 24, with nearly 97.4% of delegates in favor.
The National Assembly also requested the Government to promptly address shortcomings in brokerage and cross-selling of life insurance when reviewing loan applications and consulting on corporate bond investment.
Previously, at the socio-economic discussion session on June 1, many delegates pointed out shortcomings in the insurance market, especially investment-linked insurance products. Delegates requested the Ministry of Public Security to verify whether there were signs of fraud or deception of customers, and if so, to propose to initiate an investigation.
Investment-linked insurance products are advertised by insurers as having the meaning of risk protection and additional investment benefits. But in reality, customers' insurance premiums will be deducted a lot of costs, before being allocated to the investment-linked fund.
The National Assembly voted to pass the Resolution of the 5th session on the afternoon of June 24. Photo: Hoang Phong
In the Resolution of the session, the National Assembly also assigned the Government to have solutions to control inflation, enhance the adaptability and resilience of the economy against negative external impacts. Adjusting environmental protection tax on gasoline and oil needs to be flexible, proposing a global minimum tax mechanism, carbon tax and resolving value-added tax (VAT) refunds.
The Government needs to proactively operate monetary policy, closely coordinating with fiscal policy to promote growth; propose increasing family deductions for personal income tax. Difficulties in the currency, stock, insurance, bond, real estate markets... need to be promoted and resolved.
Regarding the credit growth limit, the National Assembly requested the development of criteria and methods to determine this limit with banks. The Government is assigned to thoroughly handle projects with long-term losses, banks and businesses that violate the law, and not let further losses arise.
Power outages and power cuts occurring in many places have greatly affected the production and business of enterprises and the lives of people. Therefore, the National Assembly also requested timely and fundamental solutions to power shortages and to ensure energy security.
Also in the Resolution, the National Assembly approved the investment policy to add VND 17,100 billion in charter capital to Agribank. The additional capital corresponds to the remaining profit actually paid to the State budget in 2021-2030 of this bank.
Of which, more than VND6,700 billion will be taken from the 2023 central budget expenditure estimate approved by the National Assembly. The remaining VND10,347 billion will be allocated from the State budget and transferred in 2024.
The National Assembly assigned the Government to make additional investment in charter capital in accordance with regulations and take responsibility for the accuracy of data and scale of additional charter capital for Agribank.
The capital increase will help Agribank meet the minimum capital adequacy ratio of 8%, towards compliance with Basel II regulations. Having more capital will help this bank improve its credit rating and increase its surplus value when equitized. The capital increase is also the basis for the bank to increase its scale of operations, expand credit, and meet capital needs in the agricultural and rural sectors.
The last time Agribank was approved by the National Assembly to increase its charter capital was in 2020, with an increase of VND3,500 billion. This amount is equal to the after-tax profit that the bank will pay to the budget in 2020, up to VND3,500 billion.
In 2022, Agribank reported pre-tax profit of more than VND22,000 billion, among the top 5 banks with the highest profits in the system. The bank's outstanding credit balance by the end of last year grew by 9.8% compared to the beginning of the year, while capital mobilization increased by only more than 5%.
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