Legalizing the right to seize property: Ending the misunderstanding about 'priority'

On the afternoon of May 20, discussing in groups about the draft Law on Credit Institutions (amended), delegate Pham Duc An ( Quang Ninh ) expressed his high agreement with the legalization of the contents of Resolution 42/2017/QH14.

Regarding the regulation that credit institutions have the right to seize collateral, the delegate emphasized that this is not a "favor" for the banking industry, but is to protect the principle of "borrowing and repaying", while ensuring the legitimate rights of depositors and the common interests of the State.

He affirmed that when borrowers and guarantors use assets as collateral, they must be fully aware that if they cannot repay the debt, the credit institution has the right to repossess the secured assets. Such clear regulations help prevent procrastination, shorten the litigation and enforcement process, thereby creating conditions for credit institutions to handle bad debts more effectively, reduce the pressure on risk provisions and have the opportunity to lower lending rates.

Sharing the same view, delegate Hoang Van Cuong ( Hanoi ) said that legalizing Resolution 42 is necessary, because after this resolution was issued, the handling of bad debt has achieved many positive results without causing any negative consequences. However, he also proposed adding some regulations to control risks.

Specifically, it is necessary to clearly stipulate that credit institutions are only allowed to seize collateral when the loan does not violate credit regulations, avoiding the situation where banks only focus on assets and ignore other credit factors.

Delegate Pham Duc An (Quang Ninh).

In addition, delegate Cuong noted some shortcomings related to secured assets that are involved in enforcement disputes. He proposed adding regulations to handle cases of counterfeit disputes when banks recover assets that are not subject to seizure, in order to prevent profiteering and ensure fairness for all parties involved.

Regarding the proposal to transfer the authority to decide on special loans (0% interest rate or no collateral) from the Prime Minister to the State Bank of Vietnam (SBV), many delegates said that this is a reasonable adjustment. This transfer will help shorten the process, increase the timeliness in handling urgent situations, thereby maintaining the stability of the financial market.

Explaining further, delegate Pham Duc An said that special loans are usually for credit institutions that are facing serious financial difficulties and no longer have collateral. Support with a 0% interest rate helps these institutions have time to recover and return to normal operations, thereby stabilizing the financial system.

However, delegate Hoang Van Cuong emphasized that in addition to decentralization, it is also necessary to strengthen the responsibility of the State Bank, especially in monitoring cash flow and preventing the risk of losing state capital.

The State Bank affirmed that the special lending measure not only supports credit institutions to borrow capital, but also aims to protect depositors, ensure system safety and maintain social order and safety. Therefore, the special lending policy with 0% interest rate needs to be viewed in the long-term vision of the economy, society and national financial security.

Source: https://baodaknong.vn/luat-hoa-quyen-thu-giu-tai-san-cham-dut-hieu-lam-ve-uu-ai-ngan-hang-253134.html