Many positive changes in the restructuring of the credit institution system

Accordingly, the State Bank has issued 4 compulsory transfer decisions for 3 compulsory banks and Dong A Bank - an important milestone in the process of handling and restructuring banks. After the compulsory transfer, the stability and safety of the credit institution system continues to be maintained, and the legitimate rights of depositors are guaranteed. In the case of SCB, based on the investor's SCB restructuring plan, the State Bank has submitted a report to the Government on the SCB restructuring plan. “On April 18, 2025, the SBV issued Document No. 40/TTr-NHNN to the Prime Minister on explaining the opinions of Government members. Implementing the Government's direction in Resolution No. 25/NQ-CP dated April 29, 2025, the SBV is continuing to complete the restructuring plan for SCB and will submit a Report to competent authorities as prescribed,” SBV Governor Nguyen Thi Hong informed in the report.

Regarding state-owned commercial banks, the SBV assesses that the above banks continue to play a leading role in the system of credit institutions in terms of capital scale, assets, capital mobilization and credit. State-owned commercial banks actively improve asset quality, control credit quality and handle bad debts by measures to urge debt collection, use risk provisions...; promote restructuring of the distribution channel network, in which priority is given to serving the agricultural and rural areas according to the direction of the Prime Minister. Implement innovation, improve the efficiency of the governance, operation, risk management, control, internal audit systems and review and improve the organizational structure; actively develop new banking services, modernize the information technology system; Restructuring business operations in a healthy and effective manner, associated with divestment in potentially risky and ineffective areas, and rectifying, consolidating and restructuring subsidiaries and affiliated companies domestically and abroad.

Joint stock commercial banks are also actively completing and implementing the restructuring plan (PACCL) approved by competent authorities. Accordingly, basically, joint stock commercial banks are focusing on consolidating and comprehensively rectifying all aspects of finance, administration and operations to improve business efficiency and competitiveness. Banks have actively grown, expanded their scale, boosted credit, mobilized capital, and actively improved their payment capacity and financial safety and health indicators. In addition, joint stock commercial banks have also made efforts and actively handled bad debts, strengthened control measures, and improved credit quality, especially credit for potentially risky areas; developed payment services, other non-credit services and expanded retail services and consumer credit. Promoted the development and diversification of banking services, focusing on improving the quality of traditional banking services and rapidly developing modern banking services...

Regarding foreign credit institutions, the State Bank said it has strengthened management, inspection and supervision of foreign credit institutions to ensure that foreign credit institutions operate safely and in accordance with the law. In particular, the State Bank encourages foreign credit institutions to participate in supporting the handling of difficulties and weaknesses of domestic credit institutions; encourages foreign credit institutions to take the lead in developing and applying modern technologies, bringing new products and services to the Vietnamese market; supports domestic credit institutions to access new processes, products and technologies to meet the increasingly diverse needs for products and services. Foreign credit institutions that operate inefficiently, are at high risk or do not meet safety standards are promptly warned and required to implement safety measures such as increasing charter capital and handling bad debts. In addition, foreign credit institutions are currently actively implementing the PACCL approved by competent authorities.

By February 2025, the on-balance sheet bad debt ratio (excluding 5 banks MBV, Global Petroleum, VCBNeo, Vikki Bank, Saigon) will be at 1.88%.

Also in the report sent to the National Assembly, the State Bank said that the financial capacity of credit institutions, especially increasing charter capital for state-owned commercial banks and state-owned commercial banks, continues to be improved.

For State-owned commercial banks, in 2024, to strengthen the financial capacity of commercial banks, the State Bank has submitted to competent authorities for approval to supplement charter capital for Vietcombank and BIDV through the form of paying dividends in shares and is seeking opinions to submit to competent authorities for Vietinbank. In addition, these banks are carrying out procedures to issue individual shares to increase charter capital in accordance with the law.

As for joint stock commercial banks and financial companies, based on proposals from credit institutions, the State Bank has approved the increase in charter capital according to regulations, in which the increase in charter capital of banks is mainly from the bank's equity capital (retained profits and reserve funds).

Despite achieving positive results, the SBV leader said that the restructuring progress for a number of non-bank credit institutions whose major owners/shareholders are State-owned corporations/groups is still slow, depending on the content of the overall restructuring plan of the State-owned corporation/group.

Source: https://thoibaonganhang.vn/nhieu-chuyen-bien-tich-cuc-trong-cong-tac-tai-co-cau-he-thong-tctd-163801.html