National Assembly delegates raise questions about overcoming cross-ownership and bank manipulation

Delegate Nguyen Thi Viet Nga raised the issue of how cross-ownership and bank manipulation have been substantially resolved? Photo: Quochoi.vn

On December 3, the National Assembly discussed in the hall a summary report on the implementation by Government members of the resolutions of the 14th and 15th National Assembly terms on thematic supervision and questioning.

Delegate Nguyen Thi Viet Nga ( Hai Phong National Assembly Delegation) commented on the results of implementing resolutions on questioning and supervision in the banking sector.

This delegate agreed with the contents of the bank’s report, however there are still some limitations. Typically, the “credit quota” mechanism has been reduced but the roadmap for its “complete elimination” is unclear.

The Russian delegate stated that Resolution 62 of the National Assembly requested research to limit and eventually eliminate the mechanism for managing the allocation of credit growth targets for each credit institution.

However, in reality, the "credit quota" mechanism is still being maintained, with specific targets assigned and adjusted for each credit institution.

"The report focuses on describing the current approach, but does not clearly show the roadmap to completely eliminate this mechanism, and does not fully explain why after many years, the request to move towards eliminating quotas still has no timeline and specific solutions attached," said delegate Nguyen Thi Viet Nga.

Regarding restructuring weak credit institutions , delegate Viet Nga stated that the resolutions of the National Assembly all emphasized: The goal by 2025 is to basically handle weak credit institutions, not to let new weak credit institutions arise, strictly control cross-ownership and backyards; and bring gross bad debt to below 3%.

Regarding this field, delegates said that the report needs to answer a number of important issues.

Typically, how many weak credit institutions have not been completely handled? What is the ratio of gross bad debt and potential bad debt compared to the target set by the National Assembly? To what extent has the situation of cross-ownership and bank manipulation been substantially resolved?

“This information in the report has not been clearly shown. We see many efforts in terms of procedures and legal framework, but have not yet assessed the level of change in the credit institution system in substance,” said delegate Nguyen Thi Viet Nga.

From the above analysis, this female delegate proposed that the State Bank should develop and report to the National Assembly a specific roadmap to gradually reduce and eventually completely eliminate the administrative mechanism for allocating credit growth targets.

Another issue also mentioned by this delegate is that the gold market is not really stable.

According to the Viet Nga delegate, in recent times, the State Bank has taken very drastic actions towards the gold market: Increasing gold supply, bidding, inspecting businesses, and advising on amending Decree 24.

There was a time when the gap between domestic and international gold prices narrowed considerably. However, reality also showed that there were periods when the gap between gold prices increased sharply again, posing the risk of speculation and market manipulation.

According to this delegate, although the report has detailed the solutions that have been implemented, it has not fully analyzed the root causes to reduce monopoly, increase healthy competition, and prevent "price fixing". The most important thing is not to let gold price fluctuations cause macroeconomic instability, as the National Assembly has requested.

After amending Decree 24, delegate Nguyen Thi Viet Nga proposed that the State Bank soon issue detailed guidance documents, publicize the roadmap for reorganizing the gold market , ensure healthy competition, reduce monopoly, and increase transparency.

At the same time, it is necessary to research and report to the National Assembly on the possibility of establishing a centralized gold trading floor with a strict management mechanism, approaching international practices.

Source: https://laodong.vn/thoi-su/dai-bieu-quoc-hoi-dat-cau-hoi-ve-khac-phuc-tinh-trang-so-huu-cheo-thao-tung-ngan-hang-1619523.ldo