The State Bank of Vietnam (SBV)’s key role in stabilising the monetaryand financial system topped the agenda of a seminar in Hanoi on May30.

Participants said in Vietnam , banks andfinancial companies managed by the SBV hold 90 percent of the totalassets of financial organisations. Therefore, the central bank plays animportant role in controlling the stability of the system of creditorganisations.

Central banks of all countries in theworld are aware of the importance of financial stability, which servesas an essential condition for macroeconomic stability, they said.

Affirming the State Bank’s irreplaceable role in stabilising thefinancial system, Dr. Vu Dinh Ang, an economic expert, stated that it isnecessary to create an information coordination mechanism in order torealise this stability.

If all relevant agenciesrecognise the monetary-financial stability as vital in their countries,they will have good collaborations with each other, he said.

Sharing the same view, Dr. Can Van Luc affirmed that there is notranscendent and ideal financial-monetary stabilisation model but thecentral bank plays more and more important role.

Heemphasised the need to have a policy coordination mechanism between theState Bank and relevant ministries and agencies as well as building aneffective and transparent deposit insurance tool in case of crisis.

He also proposed the establishment of an internationalfinancial-monetary council with the State Bank being the main actor.

Participants suggested the SBV closely follow the financial system’s developments and put forth suitable monetary policies.-VNA