Decision No. 1726/QD-TTg dated September 05, 2016 of the Prime Minister on approving the Scheme on increase of accessibility to banking services for the economy

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Decision No. 1726/QD-TTg dated September 05, 2016 of the Prime Minister on approving the Scheme on increase of accessibility to banking services for the economy
Issuing body: Prime MinisterEffective date:
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Official number:1726/QD-TTgSigner:Nguyen Xuan Phuc
Type:DecisionExpiry date:Updating
Issuing date:05/09/2016Effect status:
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Fields:Finance - Banking
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Effect status: Known

 

THE PRIME MINISTER

 
No. 1726/QD-TTg
THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
 
Hanoi, September 5, 2016
 
DECISION
Approving the Scheme on increase of accessibility
to banking services for the economy
[1]
 
THE PRIME MINISTER
Pursuant to the June 19, 2015 Law on Organization of the Government;
Pursuant to the June 16, 2010 Law on the State Bank of Vietnam;
Pursuant to the June 16, 2010 Law on Credit Institutions;
Pursuant to the overall strategy on development of Vietnam’s service sector through 2020 approved by the Prime Minister in Decision No. 175/QD-TTg of January 27, 2011, and Decision No. 808/QD-TTg of June 29, 2012, promulgating the program of action to implement the overall strategy on development of Vietnam’s service sector through 2020;
At the proposal of the Governor of the State Bank of Vietnam in Report No. 112/TTr-NHNN of July 25, 2016,
DECIDES:
Article 1. To approve the Scheme on increase of accessibility to banking services for the economy, with the following principal contents:
I. OBJECTIVES
To increase the accessibility to basic banking services of quality, at affordable cost and according to demand of an overwhelming majority of the population of maturity age and enterprises, especially residents in rural, deep-lying and remote areas, small- and medium-sized enterprises, based on the system of credit institutions operating in a safe, sound and responsible manner and developing in a sustainable manner.
By 2020, to strive to achieve the following major targets:
- 70% of the mature population to have payment accounts in the banking system;
- At least 20 branches and transaction offices of commercial banks per 100,000 mature people;
- 30,000 ATMs (some 40 ATMs per 100,000 mature people);
- 300,000 POSs (some 400 POSs per 100,000 mature people);
- The rate of branches and transaction offices of commercial banks operating in rural areas to reach around 15%;
- 35-40% of mature rural residents to have savings at credit institutions;
- 50-60% of operating small- and medium-sized enterprises to take out loans from credit institutions;
- To double the proportion of revenues from non-credit services to total revenues of commercial banks.
II. PRINCIPLES AND SOLUTIONS FOR INCREASING ACCESSIBILITY TO BANKING SERVICES FOR THE ECONOMY
1. Principle of increase of accessibility to banking services:
a/ To expand the accessibility to banking services for the economy in association with the restructuring of the system of credit institutions, respect for market rules, equality, convenience and creation of conditions for both service providers and users;
b/ The State shall create an open legal framework to support credit institutions to design and develop many banking service products, especially non-credit ones, creating conditions for the population and enterprises, especially policy beneficiaries, to have sustainable access to banking services;
c/ To encourage the involvement of various types of credit institutions to provide banking services for rural, deep-lying and remote areas and support small- and medium-sized enterprises;
d/ To step up the application of information technology in the modernization and development of diverse banking products and services toward simplicity, convenience, high accessibility and satisfaction of the needs of low-income residents in rural, deep-lying and remote areas;
dd/ To expand the accessibility to banking services along with protecting legitimate interests of banking service customers ensuring harmony between interests and sustainable development of the system of credit institutions; to raise financial knowledge for the population;
e/ To encourage the participation of socio-economic organizations in the process of increasing accessibility to banking services in rural areas in the capacity as partners of credit institutions.
2. To implement in a coordinated manner 7 groups of solutions to increase accessibility to banking services for the economy:
a/ To improve institutions and policies and create an environment conducive to the development of various banking service products, especially non-credit ones, which are financially sound in the process of restructuring the system of credit institutions
- To improve the legal framework on the licensing of the provision of banking service products, especially new services like monetary brokerage, financial counseling, asset management, etc;
- To improve the legal framework on products and services like products derivative of commodity prices, entrustment and entrustment undertaking services, insurance agency and business, asset management, enterprise finance counseling services, etc., to create conditions for credit institutions to provide sufficient, diverse financial services meeting the increasing demand of the economy;
- To continue developing in depth markets in support of financial services such as interbank monetary market, interbank foreign currency market, corporate bond market; to step by step create a foundation for the formation and development of derivative markets;
- To continue restructuring credit institutions, increase financial capability, renovating and developing the banking governance system in line with international principles, standards and practices on modern banking governance, focusing on raising the effectiveness of risk management, control and internal audit systems;
- To renovate and increase the effectiveness of banking inspection and supervision work in conformity with international practices and standards and Vietnam’s practical conditions, ensuring an open environment for credit institutions to play a dynamic and creative role in diversifying financial services and products provided for the economy while controlling risks in the entire credit institution system.
b/ To expand the network of provision of banking services by credit institutions, attaching importance to increasing the operational capacity and efficiency of the Social Policy Bank, and to develop according to a reasonable roadmap the system of people’s credit institutions and microfinance institutions
- To work out a master plan on development of the network of branches and transaction offices of credit institutions in line with the socio-economic development level, population size and number of enterprises in different areas across the country;
- To encourage credit institutions to establish branches, transaction offices and agency banks to operate in rural, deep-lying and remote areas and industrial parks to meet the economic demand of localities and in line with business orientations of credit institutions;
- To encourage commercial banks to employ modern technologies to create distant channels of provision of banking products and services such as developing electronic banking services, developing banking services based on the application of information and telecommunications technologies (mobile banking and internet banking services);
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