SBV Governor vows to speed up settlement of weak banks, bad debts
Governor of the State Bank of Vietnam (SBV) Le Minh Hung was questioned on the pace of handling bad debt and banks with bad performances during the question-and-answer session on November 1 at the 14th National Assembly’s ongoing sixth session.
Governor of the State Bank of Vietnam Le Minh Hung (Source: VNA)
Hanoi (VNA) - Governor of the State Bank of Vietnam (SBV) Le MinhHung was questioned on the pace of handling bad debt and banks with badperformances during the question-and-answer session on November 1 at the 14th National Assembly’s ongoing sixth session.
Answering a query by Deputy Nguyen Thi Yen from southern BaRia-Vung Tau province about the ineffective and asynchronous implementation ofthe NA’s Resolution No.42 on settling bad debt, Hung said that theimplementation duration of the resolution is just over one year, as it tookeffect on August 15, 2017.
According to Hung, the resolution has been carried outdrastically over the past year, producing initial positive results.
He cited reports at a conference held by the SBV in lateSeptember this year which said that credit institutions handled 140 trillionVND (6 billion USD) worth of bad debts, and the Vietnam Asset ManagementCompany handled about 95 trillion VND (4 billion USD) of the debts it hadbought.
He added that the SBV has sent detailed reports to theGovernment and Prime Minister on the shortcomings and difficulties facingministries and localities during the implementation of the resolutions.
The SBV then will coordinate with the Ministries of Financeand Justice, localities and People’s Courts at all levels to take more drasticmeasures so as to effectively tackle shortcomings in the coordination betweenoffices in the work.
The Governor said he believes the settlement of bad debtwill gather pace in the time ahead.
Regarding weak banks, the head of the central bank said thatunder the Law on amendments and supplements to several articles of the Law onCredit Organisation that became effective on January 15, 2018, the SBV had reportedthe situation of the banks to the Government and authorised agencies. TheGovernment had approved policies and directions to address the issue.
However, the process remains slow, as the SBV is assessingthose banks and holding final negotiations with investors, which are timeconsuming, Hung stated.
Based on investors’ commitments and the Government’sorientations, the central bank will complete a plan on the restructuring ofbanks with bad performances and report it to the Government and PrimeMinister.-VNA
The State Bank of Vietnam (SBV) needed to speed up the settlement of non-performing loans (NPLs) to bring down the bad debt ratio of the entire banking system, including both NPLs owned by credit institutions and the Vietnam Asset Management Company (VAMC), to below 3 percent by 2020.
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Vietnam’s finance and banking sector has reduced its ratio of non-performing loans (NPLs) – including both NPLs owned by credit institutions and the Vietnam Asset Management Company – from 17.2 percent in 2012 to 6.7 percent at the end of June 2018.
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The Party and State of Vietnam always attach great importance to and give top priority to the development of Vietnam–China relations. Vietnam is ready to work with the Chinese Party and State to further deepen the Comprehensive Strategic Cooperative Partnership and promote the building of the Vietnam-China community with a shared future that carries strategic significance.
Under the leadership of President Ho Chi Minh and the CPV, President Cuong said, the press has been a steadfast force on the ideological and cultural front, rallying the masses to pursue national aspirations.
NA Chairman Tran Thanh Man stressed the need to accelerate the application of artificial intelligence and smart teaching equipment, innovate teaching and assessment methods, and further improve the quality of formal education.
He also pledged that the NA will promote its ongoing supervision, making sure that every promise must lead to results, and every commitment must bring about real changes.
Governor of the State Bank of Vietnam Le Minh Hung (Source: VNA) 
