Credit institutions to be restructured in 2016-20 period

Live Quote: On

RSS

My Page | Contact Us

RSS

RSS

Company A-Z | Stock Screener | My Portfolios | Streaming Quotes | Technical Analysis

Investing Tools

Useful Links

Sunday, June 2, 2024 8:07:40 AM - Markets open

VN-INDEX

1,261.72

-4.60/-0.36%

HNX-INDEX

243.09

-0.92/-0.38%

UPCOM-INDEX

95.88

+0.08/+0.08%

Credit institutions to be restructured in 2016-20 period

Vietnam News - 1/24/2017 1:28:35 PM

(0 ratings. You must sign in to rate.)

Print |

Add To Favorites |

Email |

RSS

All credit institutions will be subject to restructuring in the next few years, according to Nguyễn Văn Hưng, deputy chief inspector of the State Bank of Việt Nam (SBV).

Hưng said the restructuring would take place under a project on restructuring credit institutions in association with the settlement of non-performing loans (NPLs) in the 2016-20 period, which the SBV is finalising under the direction of the Government to report to the Politburo for approval.

The SBV will formulate detailed plans and focus all its resources on implementing the project thoroughly this year, following approval by the Politburo and the Government, according to Hưng.

All credit institutions will have to map out their own restructuring plans and submit it to relevant management agencies for approval before implementing the plans.

As for the three credit institutions known as “zero-đồng” banks that were acquired compulsorily by the Government, the central bank should build its own restructuring plans and submit it to the Politburo for approval and implementation.

Under the project, the central bank will divide solutions to restructure credit institutions into three groups based on the types of credit institutions -- the group of State-owned banks with more than 50 per cent of State ownership; the group of joint stock banks, finance companies and financial leasing companies; and the group of foreign credit institutions, co-operative banks, the People’s credit funds and microfinance institutions.

Hưng said restructuring measures for credit institutions were applicable to both healthy and weak units.

He said one of the core principles of SBV while restructuring the system was to protect the interests of depositors. The central bank confirmed this would take place during the initial phase of the restructuring and would also be the principle throughout the coming years.

Accordingly, the methods and measures to restructure credit institutions will be applied in accordance with the specific characteristics of each institution and in line with the market mechanism based on the principle of being cautious, ensuring the rights of depositors and maintaining the stability and system security under the Government’s policies on restructuring the financial market, with focus on credit institutions which was stipulated under Resolution 05-NQ/TW, dated November 1, 2016.

According to the central bank, the disposal of bad debts in 2017 must be linked to the implementation of measures to prevent and minimise newly arising bad debts and credit quality improvement of credit organisations, and promotion of the role of Việt Nam Asset Management Company in bad debt settlement to ensure the NPL ratio is maintained at a safe and sustainable level of less than 3 per cent of the total outstanding loans.

Newer News
27/05	Experts predict deposit interest rates to rise 1 percentage point in H2
22/05	Finance ministry works with S&P on sovereign credit rating
13/05	Central bank's bid to stabilise gold market hits snag
08/05	Proposal of compulsory non-cash payment for gold transactions controversy
08/05	Three bidders win gold auction at high price
06/05	Bank deposits decline for first time in over two years
06/05	SJC gold price hits all-time high
24/04	Two bidders win the first gold auction this year
24/04	HCM City seeks to draw remittances in infrastructure
24/04	HCM City could issue bonds for overseas Vietnamese to fund infrastructure: conference

Older News
23/01	Banks hike deposit rates for liquidity
23/01	Central bank eyes lower bank lending rates
21/01	Cash payment declines by 2% in 6 years
20/01	VN government turns focus to long-term bonds
20/01	HCMC banks rush to lure overseas remittances
19/01	M&A in banking sector perking up for 2017
19/01	FOLs will help banks revamp
19/01	Banking system liquidity under pressure until Tết ends
17/01	SBV aims to hold inflation under 4% in 2017
17/01	Banks post higher performance for 2016

Newsletter Signup