The Law on Credit Institutions (amended) has not yet been passed.

On the afternoon of November 23, continuing the program of the 6th Session, the National Assembly discussed in the plenary hall the Draft Law on Credit Institutions (amended).

Reporting on some major issues regarding the incorporation, explanation, and revision of the draft, Mr. Vu Hong Thanh - Chairman of the National Assembly's Economic Committee - stated that the draft Law, after being incorporated and revised, comprises 15 chapters and 203 articles (an increase of 2 chapters and 8 articles, including amendments and revisions to 158 articles compared to the draft Law submitted to the National Assembly at the 5th Session).

Chairman Vu Hong Thanh stated that, compared to the draft law submitted to the National Assembly at the 5th session, many contents have been researched, incorporated, and revised by relevant agencies in the draft law.

The review and refinement process was conducted carefully and thoroughly, adhering closely to the guidelines and policies outlined in the Resolution of the 13th National Congress of the Party and the Resolution of the National Assembly.

In particular, the tasks include continuing to improve the legal framework for handling bad debts, ending cross-ownership; promoting the application of science and technology, especially digital technology, in the banking sector and developing modern banking products and services.

Continue to strengthen the financial capacity, governance, and credit quality of credit institutions and people's credit funds to ensure safe, efficient, stable, and sustainable operation.

Simultaneously, the aim is to bring about changes in the governance of credit institutions, increasing their resilience to external shocks. The solutions considered are based on enhancing the accountability of credit institutions, ensuring compliance with market principles, international practices, the consistency of the legal system, and the feasibility of regulations.

Mr. Vu Hong Thanh - Chairman of the National Assembly's Economic Committee (Photo: Quochoi.vn).

Regarding some key contents that have been incorporated, revised, and supplemented, one chapter on policy banks with 11 articles has been added. At the same time, to create a clear legal basis and favorable conditions for the operation and development of policy banks, it is proposed that the Government study and develop a separate law on policy banks.

Based on the Government's proposal, the draft Law has revised regulations related to restricting manipulation and control of credit institutions, including adjusting regulations on related parties to suit the type of people's credit fund; and adjusting the shareholding ratio for individual shareholders to 5% (instead of 3% as in the draft law submitted to the National Assembly at the 5th Session).

Simultaneously, the regulations stipulate a gradual reduction in credit limits to 10% of equity for a single customer and 15% of equity for customers and related parties over 5 years to minimize the impact.

Supplementing and refining many contents related to finance, accounting, and reporting of credit institutions such as: the concept of charter capital; profit distribution and funds…

Regarding risk provisions, incorporating the opinions of National Assembly deputies, the draft law submitted to the National Assembly at the 5th session has been revised to state: "The classification of assets, the level of risk provision, the method of risk provision, and the use of provisions to handle risks in operations shall be regulated by the Government," instead of being regulated by the Governor of the State Bank of Vietnam.

According to Chairman Vu Hong Thanh, the Standing Committee of the National Assembly found this to be a very difficult, complex, and sensitive draft law, relating to national financial security, the security and safety of the system of credit institutions, and having a profound impact on socio-economic activities.

Given the crucial role of the Law on Credit Institutions (amended) in the national financial system, the quality of the draft law must be a top priority.

Therefore, thorough and careful research based on science and practice is required to avoid situations where the law, if enacted, has shortcomings that could have many negative impacts, especially on the security and safety of the banking system and socio-economic activities.

Therefore, the fact that the National Assembly is considering and not passing the draft law at the 6th session, but will consider and pass it at a later session, is absolutely necessary to allow the relevant agencies sufficient time to thoroughly and carefully study and review the draft law.

Following the 6th session, based on the opinions of the National Assembly deputies, the Standing Committee of the National Assembly will continue to direct the lead agency responsible for verification, the lead agency responsible for drafting, and other relevant agencies to review and finalize the draft Law .

Source: https://www.nguoiduatin.vn/xem-xet-chua-thong-qua-luat-cac-to-chuc-tin-dung-sua-doi-a637370.html