Binh unveiled the central bank’s restructuring programme during question time of the National Assembly in Hanoi on November 25.

Under the programme, the banking system will be able to supply sufficient capital for economic development and be diversified in terms of scale, operational and ownership modes.

In the next five years, 10 large banks will form the core of the entire system and two banks will be qualified enough to compete in the region.

Binh called for a clear view of the restructuring process, refuting several NA deputies’ statements that the system reveals many weaknesses and that it will lead to negative effects if not restructured.

Restructuring is needed to meet the objective requirements of the economy, said the governor.

Our system has stayed completely firm amidst the recent crisis, said Binh, pointing to the fact that global banks have taken great pains to ride out the debt crisis.

However, he admitted that Vietnam has a surplus of small-scaled banks which operate inefficiently. He quoted statistics as saying the country currently has 37 joint stock commercial banks, eight of which are powerful enough to support the banking system. Eight others are small scale and operate inefficiently.

Such inefficient banks account for just 5 percent of the entire system, Binh confirmed.

He also said the country still lacks banking services required for the profession.

He voiced concern about the inefficient operation of credit organisations, considering this the most difficult task of the central bank in implementing the restructuring plan.

But he expressed hope that objectives of the programme will be met to create a stable and healthy banking system that serves as a mainstay of the economy.  

The restructuring programme will be submitted to the Government for consideration in the coming days, said the governor.