The SBV’s participants included leaders and related officials from the Banking Supervision Agency (BSA), Human Resources, Monetary Policies, Legal, Credit, Accounting and Administration department.
Standing Deputy Governor Dao Minh Tu chairs the meeting.
From Co-opBank’s side, Chairman Nguyen Quoc Cuong, Deputy CEO in charge Nguyen Minh Tuan, other standing members of the Board of Directors, Board of Management and related staff were present at the meeting.
During the meeting, Co-opBank reported to the Standing Deputy Governor Dao Minh Tu on its performance, difficulties and obstacles in Co-opBank and PCFs’ operation and made a number of proposals to the SBV. One of the most important proposals that was discussed was the necessity of additional charter capital so that Co-opBank is more financially capable to fulfill its apex role in capital intermediation and the provision of banking products and services, being “the Bank of all PCFs” and gradually becoming an even more useful tool for the SBV in the supervision and development of the PCFs network.
Besides, Co-opBank also proposed and discussed with SBV’s related departments on the elements that need to be considered when the SBV evaluates and gives credit growth targets to Co-opBank. Other issues that were discussed included loan classification, provision for doubtful debts to PCFs, the accounting of PCFs’ capital contribution in Co-opBank’s charter capital.
It was also proposed to the SBV to have a mechanism that can create favourable conditions for Co-opBank and PCFs’ operation. For instance, allowing Co-opBank to join the SBV in the process of studying and developing a Restructuring Plan relevant to Co-opBank and the PCFs; strengthening Co-opBank’s role through the inspection and supervision of banking activities, training in the implementation of regulations on the safety of PCFs in order to timely solve problems and obstacles arising in Co-opBank and PCFs’ operation.
These issues were acknowledged by the SBV’s representatives and discussed in depth with Co-opBank.
On behalf of Co-opBank’s leaders, Chairman Nguyen Quoc Cuong thanked SBV for its guidance and support, especially from Standing Deputy Governor Dao Minh Tu and the BSA’s related department in the safety and efficiency of Co-opBank and the PCFs network.
In his closing remarks, Standing Deputy Governor Dao Minh Tu highly spoke of Co-opBank’s effort, comments and proposals. He also pointed out a number of challenges and risks that Co-opBank would continue to face in the restructuring phase from 2021 till 2026 which included human resources, organization structure, management and governance, operational quality, products and services, IT, financial capacity, regulatory framework, internal management mechanism and etc. The Standing Deputy Governor requested all the related parties to start coming up with solutions to enable Co-opBank to solve its difficulties and fulfill its duties in building a safe and sound co-operative credit union network.
