Restructuring the system of credit institutions in the period of 2021 - 2025: A large-scale commercial bank must meet a minimum charter capital of VND 15,000 billion?
- What is the point of view of the implementation of the project "Restructuring the system of credit institutions in association with bad debt settlement in the period of 2021 - 2025" of the Prime Minister?
- For large-scale commercial banks in Vietnam, the minimum charter capital is VND 15,000 billion by 2025?
- Capital adequacy ratio of commercial banks in Vietnam in which the state holds at least 12% by 2025?
What is the point of view of the implementation of the project "Restructuring the system of credit institutions in association with bad debt settlement in the period of 2021 - 2025" of the Prime Minister?
Pursuant to Section I, Article 1 of Decision 689/QD-TTg in 2022, issued by the Prime Minister on June 8, 2022, has given a view to implementing the project "Restructuring the system of credit institutions associated with handling bad debts in the period of 2021 - 2025” as follows:
- Restructuring the system of credit institutions in association with bad debt settlement is an objective requirement, inheriting the results of the previous period, overcoming shortcomings, limitations and proactively responding to problems. challenge in the new period; implemented comprehensively, carefully, step by step, ensuring compliance with the principles of socialist-oriented market, openness and transparency, making full use of the credit institutions' self-handling resources; maintaining stability and safety, not letting the system of credit institutions fall into a state of crisis leading to collapse; ensure the legitimate interests of depositors.
- Consider perfecting the legal and institutional framework as a key solution to create a solid legal basis, remove difficulties and obstacles arising in practice to restructure the system of credit institutions, deal with Weak credit institutions are safe, effective and transparent.
- Mobilize and use all legal resources, including social resources, resources from credit institutions and State resources to restructure weak credit institutions and deal with bad debts; encourage and attract qualified domestic and foreign investors to participate in restructuring the system of credit institutions.
- Developing a system of credit institutions with diversified ownership and types, in which the State-owned commercial banks play a key role, leading, leading the market, having sufficient domestic competitiveness. and international; encourage and create conditions for credit institutions with sufficient financial and administrative capacity to participate in consolidation, merger, and acquisition of credit institutions with small scale or potential risks in their operations.
- Operating monetary policy proactively and flexibly, closely coordinating with fiscal policy and other macroeconomic policies in order to control inflation, contribute to macroeconomic stability, and support recovery. sustainable economic growth, creating a premise for the process of restructuring credit institutions associated with bad debt settlement, improving the confidence of the people, domestic and international investors in the banking industry.
Restructuring the system of credit institutions in the period of 2021 - 2025: A large-scale commercial bank must meet a minimum charter capital of VND 15,000 billion?
For large-scale commercial banks in Vietnam, the minimum charter capital is VND 15,000 billion by 2025?
According to subsection 2, Section II, Article 1 of Decision 689/QD-TTg in 2022, issued by the Prime Minister on June 8, 2022, the goals by 2025 are set as follows:
“II. TARGET
...
2. Specific goals
...
b) Credit institutions must take measures to secure the amount of charter capital by 2025 as follows:
- For existing credit institutions (excluding commercial banks, financial companies, financial leasing companies) weak, weak/specially controlled/implementing the restructuring plan issued by the government authorized to approve):
+ For commercial banks: (i) The group of domestic commercial banks with financial potential, competitiveness and large scale: minimum charter capital of 15,000 billion VND; (ii) Group of domestic commercial banks with financial potential, competitiveness, small and medium scale and commercial banks with foreign capital: minimum charter capital of 5,000 billion VND;
+ For financial institutions: the minimum charter capital is 750 billion VND; + For financial corporations: the minimum charter capital is 450 billion VND.
- For commercial banks, financial institutions and financial institutions that are weak, weak/specially controlled/implementation of the restructuring plan approved by the competent authority: the capital increase plan shall comply with the approval of the competent authority.
Thus, the target by 2025 is that for large-sized banks, the minimum charter capital is 15,000 billion VND, this figure will be 5,000 billion VND for small and medium sized commercial banks. The minimum charter capital for a finance company is 750 billion dong and a finance leasing company is 450 billion dong.
Capital adequacy ratio of commercial banks in Vietnam in which the state holds at least 12% by 2025?
Pursuant to subsection 2, Section II, Article 1 of Decision 689/QD-TTg in 2022, issued by the Prime Minister on June 8, 2022, specific objectives are set as follows:
“II. TARGET
...
2. Specific goals
a) Pilot implementation of Basel II application by advanced method at State-owned commercial banks holding controlling shares and joint stock commercial banks with good governance quality that have completed applying Basel II according to standard methods by the end of the year 2025; striving that by 2023, the capital adequacy ratio (CAR) of commercial banks will reach at least 10 - 11%; by 2025, reaching at least 11-12%.”
Thus, in 2023, the capital adequacy ratio of commercial banks will reach at least 10-11% and in 2025 it will be 11 to 12%.
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