Banks asked to encourage cashless transactions
Banks asked to encourage cashless transactions
The head of the State Bank of Vietnam (SBV) has issued a directive on the banking sector’s main tasks this year, including bolstering cashless payments.
Speaking at a recent banking conference, SBV Governor Le Minh Hung said that the central bank is seeking approval from the Minsitry of Justice to launch the Mobile Money service in 2020.
Hung, in the first directive of the year, asked local banks to expedite noncash payments, especially payments for public services through banks, to ensure payment channels and the provision of payment services are safe and effective.
Local banks were also told to upgrade their information infrastructure and leverage advanced technology to develop digital banking services, as well as enhance security and safety in banking activities.
The sector this year will continue to show its great determination to restructure credit institutions associated with the settlement of bad debts in the 2016-2020 period.
The central bank set a goal to lower the bad debt ratio to under 2% this year. Also, the volume of bad debts at credit organizations, bad debts that banks had sold to the Vietnam Asset Management Company and classified debts must be maintained at less than 3%, excluding bad debts of poorly performing commercial banks.
Besides this, the governor requested that legal frameworks and policies be created in line with international practices and standards.
The banking system has to speed up administrative reforms to improve the business environment and the country’s competitiveness.
