Directive No. 10/CT-NH1 on intensifying the implementation of key tasks in banking activities for the fourth quarter of 1997.

DIRECTIVE

On promoting the implementation of some key tasks in banking activities in Quarter IV/1997
In recent times, before the common difficulties of the economy, especially some issues arising in banking activities, under the guidance of the Party and the Government, the entire sector has focused on analyzing and evaluating each issue, clarifying the causes, and on this basis, adjusted, supplemented, and implemented synchronously and strongly various solutions in banking activities. As a result, initial efforts have been made to overcome existing weaknesses, particularly those issues concluded by the State Audit. Monetary and credit policies have positively contributed to overcoming the phenomenon of economic recession, with prices increasing by 0.1% in August and 0.6% in September. Credit capital has timely met the needs of projects and economic development programs of the Government: purchasing rice for temporary storage awaiting export, expanding capital supply for state-owned enterprises, ensuring capital for farmers facing difficulties to continue developing production...
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However, the situation of the economy over the past nine months still shows signs of difficulty, with stagnation in some industrial sectors, some goods encountering difficulties in competing with products from other countries, low budget revenue affecting the spending plan... The common difficulties of the economy also pose new challenges for banking activities, and the remaining tasks in Quarter IV/1997 will be more arduous. Nevertheless, more than ever, banking activities need to continue to stabilize and operate smoothly, focusing on key issues, stages, and areas to perform well, contributing to resolving the difficulties of the economy; striving to achieve the targets set for the entire sector in 1997. Therefore, the Governor requests all units in the entire sector to focus on directing the implementation of the following key tasks:

1. By all means, strive to achieve the goals of monetary policy as planned since the beginning of the year in terms of money supply for foreign exchange reserves and refinancing purposes, expanding credit investment to meet the timely capital needs of the economy, contributing to stimulating demand in society, preventing the phenomenon of economic recession, while proactively forecasting to implement reasonable measures to curb inflation in the future.

2. Focus on directing to complete the two Banking Law draft bills and their supporting documents to be presented for review and approval by the National Assembly during the process of considering and passing the Banking Law.

3. In external affairs work, concentrate on quickly addressing the conditions committed to international financial organizations (IMF, WB, ADB) to effectively implement the SAF, ESAF program; open financial projects for rural development, bank modernization projects, rural credit projects; complete the handling of trade debts through the London Club.

4. Further consolidate the organization and staff of state-owned commercial banks, supplementing and strengthening capable and virtuous leaders; conduct a summary of four years of pilot establishment of People's Credit Funds; consolidate and reorganize the system of joint-stock commercial banks, paying attention to some joint-stock banks facing difficulties; continue to study adjustments to the functions and responsibilities of certain departments of the State Bank to meet the requirements of building and implementing monetary policy in the new phase.

5. Party committees at banks need to consistently pay attention to guiding ideological work for party members, educating and motivating all employees to fully leverage their strength, unite, and strive to complete all assigned tasks. Establish working regulations between the Party Committee and professional management; hold Party congresses and trade union meetings at all levels of banks; prepare specific programs and plans to promptly grasp and implement the upcoming Central Committee Directive on "strengthening comprehensive leadership of the Party in banking work."

To effectively implement the five key tasks mentioned above, banks and relevant units need to take practical measures to implement the following specific tasks:

1. Continue to implement the money supply plan for Quarter IV/1997, evaluate and analyze strengths and limitations, particularly the impact of the 1997 money supply on the next year, to develop reasonable measures to curb inflation.

2. Branches of the State Bank in provinces and cities, commercial banks, and other financial institutions need to thoroughly understand and organize the implementation of Circular 09/CT-NH1 dated August 27, 1997 of the State Bank on "handling credit conditions and procedures." They should actively seek projects and customers, dispatch capable and virtuous staff to advise and assist customers in finding business plans and establishing effective projects to expand investment capital with the principle of being proactive and dynamic but safe and effective. Concentrate credit funds on feasible projects within regional, area, and industry economic development programs. Commercial banks and other financial institutions should proactively propose and cooperate with each other to provide active measures to jointly finance large-scale development projects. Implement healthy increases in loan balances to meet the capital needs of the national economy.

3. Commercial banks and other financial institutions need to take positive measures to care for and increase sources of capital, especially tapping potential long-term capital sources. By diversifying capital mobilization methods, being proactive and creative in encouraging people to deposit money in banks, they should strive to achieve the projected capital increase target for 1997 set by the entire sector.

Find solutions to facilitate the implementation of rural financial projects and rural credit projects. Organize the implementation of commitments with international financial organizations (IMF, WB, ADB) to effectively implement the SAF, ESAF program, aiming to attract foreign capital and enhance domestic investment capacity.

Seek solutions to facilitate the implementation of rural financial projects and rural credit. Organize the fulfillment of commitments with international financial organizations (IMF, WB, ADB) to effectively implement the SAF, ESAF programs, thereby attracting foreign capital and enhancing domestic investment capacity.

4. Continue to improve banking operations on credit, joint ventures, capital contributions, etc., with particular attention to reviewing and addressing weaknesses in credit work to minimize potential errors, enhance the quality of investment credit in each industry, sector, and economic component. Absorb suggestions from all levels of government and enterprises to develop appropriate measures and promptly adjust mechanisms to align with practical developments.

5. Accelerate the progress of modernizing banking projects, improve bank payment services, urgently implement measures to increase non-cash transaction ratios, contributing to speeding up social capital turnover and providing good support for bank credit funds.

6. Strictly manage foreign currency flows according to current regulations. Develop solutions to handle overdue letters of credit. Closely monitor balance of payments trends to proactively propose measures or request the Government's timely guidance to various sectors to implement comprehensive measures to improve the trade deficit level, increase foreign exchange reserves for the country. Manage exchange rates flexibly based on foreign currency supply and demand in the market, ensuring encouragement for exports, control over imports, and other macroeconomic balances. Have specific directions and steps to achieve the goal of using Vietnamese currency in Vietnam. Closely monitor monetary crises in neighboring countries to proactively take measures to prevent them and promptly propose necessary actions to the Government to mitigate negative impacts on the domestic economy.

7. All units in the entire sector must fully understand and effectively implement the "plan to carry out activities according to the directive of the Party Central Committee on banking operations" as stated in Document No. 761/CV-NH1 dated September 22, 1997, issued by the Governor of the State Bank. With assigned tasks, units need to concentrate core staff to complete with high quality, aiding comprehensive and deep evaluation of ten years of reform and building a five-year, ten-year development strategy for the banking system.

8. Alongside expanding credit measures, it is necessary to strengthen inspection and supervision, particularly internal self-inspection, to minimize potential risks to credit activities as well as treasury, payment, and money transfer operations.

9. Continue to review and address prominent issues in banking operations, strictly handling violations by individuals according to the law, mechanisms, and regulations. However, banks also need to focus on identifying positive factors, promptly recognizing and rewarding units and individuals performing well, promoting positive elements, summarizing good experiences and effective methods for the entire sector to learn and apply under their specific conditions, thereby effectively fulfilling assigned tasks in 1997.

10. Organize meetings of directors from both regions to thoroughly understand the contents of the two Banking Laws. Branch directors of the State Bank should plan to report to local party committees, governments, and provincial National Assembly delegations about the draft Banking Law, aiming to promote awareness and absorb feedback to perfect the content of the Banking Law before submitting it to the National Assembly at its next session.

With a high sense of responsibility towards the Party, the people, and major national economic issues, it is required that Party leaders, professionals, and leaders of mass organizations deeply understand the spirit of this directive and convey it to all staff in the entire sector. Continuously uphold the fine tradition of unity and consensus to form a comprehensive strength to successfully accomplish the tasks set for 1997, effectively enhancing the reputation of the entire sector.