Lessons from global financial crisis

VGP – Experts pointed out that, one of main causes of the global financial and economic crisis is that the “market discipline” was exaggerated while the regulatory role and supervision of the State were neglected.

October 16, 2009 11:43 AM GMT+7

Mr. Lê Đức Thúy, Chairman of the National Financial Supervision Committee, delivers remarks at the Conference “Financial Crisis and Macro-prudential Supervision,” Hà Nội, October 15, 2009 – Photo: VGP

The conclusion was drawn by the experts at the Conference "Financial crisis and macro-prudential supervision" jointly held by the National Financial Supervision Committee (NFSC) and the Irish Embassy in Hà Nội on Thursday.

The conference concentrated on theoretical issues and international experience relating to financial supervision system, international trends in renewing this system, policies adopted by Viêt Nam and other countries in response to the global crisis, and the recovery from the economic downturn.

Many delegates suggested Việt Nam differentiate functions of the State Bank, Finance Ministry, NFSC and the Việt Nam Deposit Insurance. It is also necessary to empower the NFSC and establish an effective coordination mechanism between this body and other relevant agencies.

“Spending to renew a financial supervision system are great, however, the cost for financial instability and weakness of supervision agencies are even bigger,” concluded the Conference.

By Hoàng Phương