Cross-ownership in the credit system needs to be stopped.

(HNMO) - Continuing the agenda of the fifth session, on the afternoon of June 10, under the chairmanship of Politburo member and National Assembly Chairman Vuong Dinh Hue, the National Assembly held a plenary discussion in the assembly hall on the draft Law on Credit Institutions (amended). Many delegates expressed concern about the handling of cross-ownership related to credit institutions and argued that this situation needs to be ended.

A panoramic view of the discussion session in the assembly hall on the afternoon of June 10th.

Preventing risks to the banking system.

Contributing to the improvement of the draft law, delegate Trinh Xuan An ( Dong Nai delegation) stated that during the questioning sessions, the Governor of the State Bank of Vietnam frequently mentioned risk prevention, and the draft law also contains many regulations to prevent risks to the banking system. However, based on recent incidents involving banks in Vietnam, the delegate believes that additional regulations to prevent systemic risks are needed, so that when incidents occur, the system can effectively withstand them.

Delegate Trinh Xuan An (Dong Nai Delegation) participates in the discussion.

Delegates also expressed concern about addressing cross-ownership in credit institutions. According to delegates, this is a very difficult issue, and the regulations in Articles 55 and 127 of the draft law are not strong enough to end cross-ownership. The solutions in the draft law are passive and ineffective. Emphasizing that ending cross-ownership requires transparency, accountability, and strict handling of violations by organizations and individuals, delegates suggested reviewing and redesigning the model of the financial supervisory and inspection agency related to banks to more effectively address this issue.

Representative Nguyen Hai Trung ( Hanoi Delegation) argued that cross-ownership and group interest manipulation in the banking sector remain a worrying issue. The draft law amending and adjusting the ownership ratio of individuals and organizations, increasing the public nature of credit institutions, and expanding the scope of related entities is necessary. However, the representative believes that the solutions outlined in the draft are merely technical measures to limit the number of major shareholders.

Delegate Nguyen Hai Trung (Hanoi delegation) participates in the discussion.

According to the delegates, it is necessary to study and supplement regulations to strengthen the role of the State Bank of Vietnam to limit the abuse of power by major shareholders and their management and operational authority to manipulate the operations of credit institutions. Secondly, it is necessary to study and implement additional measures and solutions to manage and control loopholes in the law, such as using multiple individuals or legal entities to hold shares and create groups of major shareholders to control credit institutions.

Commenting on regulations related to providing information to specialized agencies for crime prevention and control, delegate Nguyen Hai Trung argued that the regulations in the draft Law do not meet the time requirements in practice for crime prevention and control, especially the prevention and control of high-tech crimes and fraud in cyberspace.

The situation regarding cybercrime and high-tech crimes such as fraud, gambling, organizing gambling, and money laundering is currently very complex and causing particularly serious consequences. To improve the effectiveness of crime prevention and control, according to the delegates, it is necessary to issue regulations and shorten the time for providing customer account information to serve the fight against crime, and the Government could be tasked with researching and formulating detailed regulations.

Regulations on early intervention by credit institutions

Clarifying the regulation exempting policy banks from mandatory reserves, Representative Pham Van Hoa (Dong Thap Delegation) suggested expanding the scope to include other financially capable and reputable entities, instead of limiting it to only two organizations as stipulated in the draft law. Regarding the mandatory reserve fund, Representative Pham Van Hoa stated that while the regulation on the Development Investment Fund is necessary, the draft law does not clearly specify the requirements related to the level of fund allocation, the conditions for establishing and operating the fund to ensure its effectiveness.

Delegate Pham Van Hoa (Dong Thap Delegation).

Regarding the application of early intervention measures, Representative Pham Van Hoa argued that there has been no assessment clarifying the correlation between enhanced supervision and early intervention, and no special control measures to further enhance accountability. At the same time, regulations are needed regarding early intervention by credit institutions and state management agencies if cases requiring early intervention occur without initial handling measures. Therefore, the representative proposed adding a measure to the draft law prohibiting credit institutions from making investments and clarifying the extent to which mass withdrawals necessitate intervention by the State Bank of Vietnam to ensure transparency.

Regarding special loans, Representative Pham Van Hoa agreed that the provisions in the draft are necessary to ensure the safety of the entire system and build absolute trust with customers. However, it is necessary to be clear when applying them to incidents of mass withdrawals or the risk of system collapse, causing social instability.

Delegate Truong Trong Nghia (Ho Chi Minh City delegation) delivered a speech.

Representative Truong Trong Nghia (Ho Chi Minh City delegation) argued that the regulations on customer information confidentiality in Article 14 of the draft Law are not entirely comprehensive. According to the representative, everyone has the inviolable right to privacy and the right to maintain personal and family secrets. Information about personal or family privacy is protected by law under the Constitution, except in cases necessary for national defense, national security, and social order and safety…

Therefore, the delegates proposed amending Article 14 to only provide customer information as stipulated in the Law on Credit Institutions (amended) and related laws; and also proposed requesting information only from customers involved in cases that have been initiated or are under investigation…

Delegate Nguyen Van Than (Thai Binh delegation) delivered a speech.

Speaking in the National Assembly debate, delegate Nguyen Van Than (Thai Binh delegation) argued that businesses urgently need access to capital for production and business, and people also have pressing consumption needs. Banks have money, but according to the mechanism, they cannot lend to businesses and individuals. Therefore, the delegate suggested that the purpose and perspective of drafting the law should clearly demonstrate mechanisms to facilitate access to finance for people and businesses. In particular, the drafting committee needs to more closely monitor the financial needs of people and businesses in the current situation to resolve obstacles related to mechanisms and address the pressing social issue of capital shortage.

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