No country has as many commercial banks as ours.

On the afternoon of June 5, speaking at the group discussion session on the draft Law on Credit Institutions (amended), delegate Duong Ngoc Hai (HCMC) said that the current credit market and banking operations still have many shortcomings, are not healthy, have cross-ownership, and violate the law.

Leaked information causes huge consequences

According to Mr. Hai, the corporate bond market has been too unstable in recent times, the stock market has been fluctuating, while commercial banks have not played an important role as a channel for capital. He believes that this amendment to the law will overcome these shortcomings, promote the development of a stable banking market, and enhance competitiveness.

Mr. Le Minh Tri: No other country has as many commercial banks as ours - 1 — Delegate Duong Ngoc Hai (HCMC)

The delegation of Ho Chi Minh City also proposed to add some prohibited acts that have caused public outrage in recent times, such as illegal bond brokerage; forcing customers to buy insurance to qualify for loans... This draft also proposes intervention measures when credit institutions are subject to mass withdrawals. Delegate Hai affirmed that this is necessary to support credit institutions and ensure system safety.

However, he said that current measures mainly come from the State Bank and there are no self-reliant solutions from banks that are suffering from massive withdrawals.

Even the draft does not have any measures to deal with credit institutions that let this problem happen. "If the regulations are like this, credit institutions will become dependent and think that if they encounter this situation, the State Bank will come to the rescue," said Mr. Hai.

Sharing the same concern, delegate Pham Duc An, Chairman of the Board of Directors of Agribank Pham Duc An (delegate from Hanoi) was concerned about the State Bank's intervention when mass withdrawals occurred. He said that early solutions are needed to prevent this phenomenon in time, and if it has already occurred, the intervention from the State Bank should be minimized.

“Every piece of information that leaks out immediately causes huge consequences. Depositors only hear rumors and immediately withdraw their money,” Mr. An said.

Mr. Le Minh Tri: No other country has as many commercial banks as ours - 2 — Chief Justice of the Supreme People's Procuracy Le Minh Tri (delegate of Ho Chi Minh City)

Taking into account the roadmap to reduce commercial banks

According to the Chief Justice of the Supreme People's Procuracy Le Minh Tri (a delegate from Ho Chi Minh City), to prevent and handle bad debts and collateral, we must take precautions in advance to limit them. If they occur, handling them will be slow. According to Mr. Tri, no country has as many commercial banks as ours. If we cannot control them, we must consider a roadmap to reduce the number of commercial banks.

On the other hand, Mr. Tri also said that if there are too many commercial banks, there will be unhealthy competition. Therefore, it is necessary to reduce the number of commercial banks if it is seen that they do not have a great effect on socio -economic development.

“We must consider the responsibility of banks as Deputy Duong Ngoc Hai said, not just use people's money to bear the burden when something happens. We suggest strengthening inspection and examination to ensure the true lending function of a credit institution,” Mr. Tri suggested.

Mr. Le Minh Tri also cited Decision 986 of the Prime Minister , saying very specifically: It is necessary to review, research, amend and supplement regulations on preventing cross-ownership, preventing the management and operation rights of major shareholders to manipulate the operations of credit institutions, limiting domination and takeover...

According to Mr. Tri, this is a correct request and this law must require state management agencies, first of all the State Bank, to propose feasible solutions.

(Source: Tien Phong)

Useful
Emotion
Creative
Unique

Source