Continue to propose decentralization of the State Bank to decide on special loans with 0% interest rate

Speaking before the National Assembly , Governor of the State Bank of Vietnam Nguyen Thi Hong said: Currently, bad debt in the credit system continues to be high and has an increasing trend, which is putting pressure on the banking sector, especially in the current context when 2025 is identified as the year of acceleration and breakthrough to reach the finish line for the entire 2021-2025 term and the Government has set a target of achieving a growth rate of at least 8%, creating momentum, creating force, creating momentum for our country to grow by double digits in the following years.

According to the Governor of the State Bank of Vietnam (SBV), legalizing the three provisions of Resolution No. 42 on the provisions on seizure of secured assets, attachment of secured assets, and return of evidence of criminal cases is urgent to ensure a long-term and stable legal basis to increase the effectiveness of bad debt handling and enhance access to credit for businesses and people.

In addition, in reality, the risk of mass withdrawals does not only occur in weak commercial banks, but large-scale commercial banks that operate effectively can still face the risk of mass withdrawals due to objective incidents. The use of electronic banking applications, internet banking or other electronic applications also makes the mass withdrawal incident happen faster.

Therefore, "liquidity support for commercial banks through special loans needs to be decided as quickly as possible. Transferring authority from the Prime Minister to the State Bank meets this urgent and quick requirement in practice," said Ms. Nguyen Thi Hong.

National Assembly delegates attending the session

Accordingly, the draft Law amends and supplements the authority to decide on special loans of the State Bank in the direction of transferring the authority to decide from the Prime Minister (in the case of special loans with interest rates of 0%/year, special loans without collateral) to the State Bank in order to thoroughly decentralize and delegate authority to the State Bank in deciding on special loans; strengthen the role and enhance the responsibility of Government members. At the same time, this provision helps reduce intermediaries in the implementation process; thereby, contributing to shortening the processing time to ensure timely implementation, security and safety of the credit institution system.

Regarding some other specific contents, the Governor of the State Bank said: The Draft Law supplements Article 198a after Article 198 of the Law on Credit Institutions. Article 198a stipulates the right to seize collateral (TSBĐ) of credit institutions and debt trading and handling organizations in cases of handling bad debts and handling collateral of bad debts.

Accordingly, credit institutions and debt trading and handling organizations have the right to seize collateral. Seizure of collateral is only carried out in cases where the security contract has an agreement that the guarantor agrees to allow the secured party to seize the collateral of the bad debt when the collateral must be handled according to the provisions of law.

According to the Governor of the State Bank, the regulations on the seizure of collateral are not unilateral and unconditional seizures but must comply with the scope, limits and conditions of seizure. At the same time, regulations on the order and procedures for seizure must be fair, public and transparent, ensuring the rights and legitimate interests of the obligated party, credit institutions and related parties....

Chairman of the Economic and Financial Committee Phan Van Mai speaks

Reviewing the draft Law, Chairman of the Economic and Financial Committee Phan Van Mai expressed his agreement on amending and supplementing regulations related to the authority to decide on special loans with an interest rate of 0%/year, without collateral, from the Prime Minister to the State Bank of Vietnam.

However, it is recommended that the State Bank review current regulations on special loans; study and specify detailed criteria and conditions for special loans with 0% interest rate/year and loans without collateral; clearly and transparently stipulate lending procedures and processes and take measures to strengthen control, prevent and limit possible losses;

At the same time, review the provisions of the Law on Credit Institutions 2024 related to the authority to decide on special loans to amend and supplement them in accordance with the decentralization of authority to the State Bank, avoiding problems arising in implementation.

Source: https://phunuvietnam.vn/tiep-tuc-de-xuat-phan-quyen-ngan-hang-nha-nuoc-quyet-dinh-cho-vay-dac-biet-lai-suat-0-20250520100451682.htm