Banking industry resolutely restructures system, strictly controls bad debt

For other weak banks, in late 2024 and early 2025, the SBV actively advised the Prime Minister to approve the Resolutions on compulsory transfer for 3 banks subject to compulsory purchase and DongA Bank as a basis for the SBV to issue decisions on compulsory transfer for these 4 banks. This is an important milestone in the roadmap for handling and restructuring banks.

The State Bank of Vietnam said it will continue to direct credit institutions to resolutely implement the restructuring plan associated with bad debt settlement for the 2021-2025 period.

Bad debt in the whole industry is under control. As of February 2025, the system's on-balance sheet bad debt ratio (excluding 5 banks MBV, GPBank, VCBNeo, Vikki Bank, SCB) is at 1.88%.

The restructuring of weak banks has made great progress. However, according to the State Bank, the restructuring progress of some non-bank credit institutions whose major owners/shareholders are State-owned corporations/groups is still slow due to its dependence on the content of the overall restructuring plan of the State-owned corporations/groups.

In the coming time, the State Bank said it will continue to direct credit institutions to resolutely implement the restructuring plan associated with bad debt settlement for the 2021-2025 period in an effort to achieve the solutions and objectives of Project 689. At the same time, it will focus on implementing the plan to handle weak credit institutions and restructuring specially controlled commercial banks under the direction of competent authorities. In addition, it will promote bad debt settlement, improve credit quality, prevent and minimize new bad debts.

The inspection, examination and supervision of the operations of credit institutions continue to be strengthened. In particular, the inspection and supervision of areas with high potential risks will be focused; risks, problems and violations of credit institutions will be strictly detected and handled, contributing to ensuring security and discipline in the monetary and banking markets; and the application of information technology in banking inspection and supervision will be further promoted.

Source: https://thoibaonganhang.vn/nganh-ngan-hang-quyet-liet-co-cau-lai-he-thong-kiem-soat-chat-no-xau-162988.html