(HNMO) – The drafting of the Law on Credit Institutions (amended) aims to improve regulations and handle problems and inadequacies of the law on credit institutions; legalized to create a legal corridor for the handling of bad debts of credit institutions.
Continuing the program of the fifth session, the 5th National Assembly, on the morning of June 6, under the direction of Vice Chairwoman of the National Assembly Nguyen Khac Dinh, Governor of the State Bank of Vietnam Nguyen Thi Hong, authorized by Prime Minister Nguyen Xuan Phuc. The Prime Minister presented the Proposal on the project of the Law on Credit Institutions (amended). State Bank Governor Nguyen Thi Hong said that the development of the Law on Credit Institutions (amended) aims to strengthen risk prevention, strengthen self-inspection, internal control and self-responsibility. of credit institutions. At the same time, develop tools to manage credit institutions; early detection of violations and timely handling of responsibilities of individuals administering and operating the credit institution. Strengthening decentralization and decentralization associated with inspection, supervision and personalization of individual responsibilities; ensure publicity and transparency in banking activities.
The Law on Credit Institutions (amended) also aims to ensure the safety of the credit institution system; strengthen the inspection and supervision measures of the State Bank. At the same time, the Government Inspectorate, the Ministry of Finance and other ministries and branches participated in the management and control of credit activities, combating manipulation, group interests, and cross-ownership; handle the situation where depositors withdraw their money in bulk and have an effective mechanism to restructure credit institutions under special control.
Regarding the viewpoint of law development, the Governor of the State Bank of Vietnam said that the development of the Law on Credit Institutions (amended) should closely follow the views of the Party and State in order to perfect the legal framework on money. currency, banking operations, restructuring credit institutions to ensure the safety of the system, enhancing transparency, publicity and conformity with market principles and international best practices, facilitating the process of digital transformation in the banking industry.
Regarding the scope of regulation, the draft Law on Succession stipulates the current Law on Credit Institutions and supplements the handling of bad debts and the handling of collaterals of bad debts. Regarding the subjects of application, the draft Law adds that the subjects of application are organizations in which the State owns 100% of charter capital, which has the function of buying, selling, and handling debts.
The Governor of the State Bank of Vietnam said that with the goal of creating conditions to improve people's access to credit, the draft Law has amended and supplemented regulations on credit granting. In which, simplifying procedures for consumer loans, small loans for life; creating a legal corridor for the provision of banking services via electronic means, promoting digital transformation in banking activities such as supplementing regulations regulating credit granting activities by electronic means.
Regarding restrictions to ensure safety in the operation of credit institutions, in order to limit risks from credit concentration, the draft Law amending and supplementing regulations in the direction of reducing credit limit ratio of a customer, a customer and a related person. At the same time, the draft Law also amends and supplements regulations on adjusting limits on capital contribution and share purchase by credit institutions in order to enhance the publicity of credit institutions' operations.
Presenting the report on the verification of the project of the Law on Credit Institutions (amended), Chairman of the Economic Committee of the National Assembly Vu Hong Thanh said that one of the new points, but caused many concerns to the verifying agency. right from the preliminary examination is to supplement the regulation that credit institutions receive early intervention by the State Bank.
Accordingly, the draft Law allows the use of special loans right from the early intervention step, and at the same time expands some concepts such as unsecured lending, special loan designation; fixed interest rates for special loans at 0%/year and support mechanisms for credit institutions for special loans. Specifically, the bank is in the case of early intervention when a mass withdrawal leads to insolvency, or the credit institution fails to maintain the payout ratio and capital adequacy for 3 and 6 consecutive months, respectively. continuously, have accumulated losses greater than 20% of the value of charter capital and reserve funds.
One of the measures applied to this group is special loans, without collateral, with 0% interest per year from the State Bank, deposit insurance and other banks. The Economic Commission believes that the State Bank as the lender of last resort to make special loans is necessary to ensure liquidity, system safety, and prevent withdrawals. series, security stability, social order and safety.
“However, it is necessary to review cases of special loan access in the direction of only applying in case of mass withdrawal or in case of risk of disruption affecting the safety of the banking system. , causing social instability and the State Bank must be responsible for special lending decisions, solutions to support credit institutions in difficulty, although not using the state budget, but indirectly affect affect the budget", the verification agency emphasized.
