By April 26, 2016 | 04:15 pm GMT+7The government’s National Financial Supervisory Commission (NFSC), which oversees financial and monetary policies, will develop a realiable database on the financial market and better monitor capital flows between credit institutions, securities companies and insurance businesses, said Deputy Prime Minister Vuong Dinh Hue on Monday.
The Deputy Prime Minister asked the NFSC to work with the Ministry of Investment and Planning to advise the government on developing policies and creating measures aimed at boosting economic reforms between 2016 and 2020, maintaining economic growth in the long term and stabilizing the national financial system, according to a statement on the government’s website.
The NFSC will also cooperate with the Ministry of Finance and the State Bank of Vietnam to keep public debts under control, restructure state-owned enterprises (SOEs), clear non-performing loans at credit institutions and help the Vietnam Asset Management Company offload bad debts. In addition, the government’s financial supervisory arm will play a larger part in issuing government-guaranteed bonds in line with momentary policy.
Vietnam plans a massive market overhaul by restructuring the banking sector, securities market and insurance businesses, said the deputy prime minister.
Hue also highlighted the crucial role that the NFSC plays in helping the Prime Minister to introduce rules and regulations designed to monitor the financial market.
He added that the NFSC is responsible for putting forward proposals relating to risk management so that the government can address uncertainties in the financial market and macro-economy.
According to the deputy prime minister, the NFSC will coordinate its activities with related ministries and government agencies to develop a realiable database on the financial market which is sharable among financial monitoring agencies, and be in charge of drafting regulation amendments to tackle possible violations in the banking, securities and insurance industries.
“The NFSC needs to strengthen its ability to analyze and make macroeconomic forecasts and perform as a proactive advisor to the Prime Minister on macroeconomic policies so that [Vietnam] will not be caught off guard by any unfavorable situations,” said Deputy Prime Minister Hue.