Vietnam has ordered its central bank to take timely measures to stabilize the banking system and regain the confidence of the public and investors.
Through a resolution, the government ordered the State Bank of Vietnam central bank to strengthen discipline in the banking sector and completely “deal with” all weak lenders next year.
The State Bank of Vietnam announced way back in June that it would restructure nine weak lenders within a few weeks. So far it has not provided any update on the plan, apart from giving approval for Saigon-Hanoi Commercial Joint Stock Bank to take over troubled lender Hanoi Building Commercial Joint-Stock Bank in August.
The central bank had earlier arranged for three weak lenders with liquidity problems to merge at the end of last year.
The central bank must continue its flexible monetary policy in a way that can help local companies access loans but does not fuel inflation, the resolution said.
Outstanding loans in Vietnam’s banking system had risen an estimated 2.35 percent as of September 20 from the end of last year, the government said last week.
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