Illustrative image (Source: VNA)The project aims to restructure credit institutions andsettle bad debt on the principles ofensuring the interests of depositors and maintaining the stability and safetyof the banking system, and reduce the number of badly performing creditinstitutions.
Overall solutions include completing the legal framework,perfecting policies and mechanisms related to monetary and banks’ operations,improving the financial and business administration capacity of creditinstitutions, and bettering inspections and supervisions over banks’operations.
The project stresses the need to improve the capacity of theState Bank of Vietnam (SBV) to make early warning of systematic risks and toprevent the risk of law violations of credit institutions and foreign banks’branches.
Inspection work will be reformed on the basis of using newrisk control tools and methods.
The project also puts forward orientations and measures torestructure commercial banks in which the State holds more than 50 percent ofchartered capital, and improve operations of joint stock commercial banks,financial and financial leasing companies.
For bad debt settlement measures, the project asks the SBV,ministries, localities, credit institutions, Vietnam Asset Management Company(VAMC), and organisations and individuals involved to continue implementing theDecision No.843/QD-TTg on settling bad debts of the credit institution system.
Credit institutions are required to review the quality andrecovery possibility of outstanding debts, while continuing to restructuredebts.
The SBV, ministries and localities are requested to continueimplementing measures related to monetary, credit and banking policies andmechanisms, along with solving difficulties for business and productionactivities, and stimulating consumption.
The SBV needs to intensify inspections and supervisions oncredit institutions’ observance of rules on credit, safe operation and debtclassification, while the VAMC focuses on classifying borrowers, mortgageassets and loans, coordinating closely with credit institutions in taking backand restructuring debts and selling debts and guarantee assets, and providing financialassistance for borrowers to recover business and production and completeunfinished projects.
The country’s system of credit institutions currentlyincludes State-owned banks, joint stock banks, finance companies, financialleasing companies, foreign credit institutions, co-operative banks, People’scredit funds and microfinance institutions.-VNA
VNA
