Will Vietnam have from 2 commercial banks in Vietnam in the top 100 big banks in Asia in the period from 2021 to 2025?
- By 2025, Vietnam will have at least 02 commercial banks in Vietnam in the top 100 largest banks in Asia?
- Solution to restructure commercial banks in Vietnam where the state holds more than 50% of charter capital?
- Solution to restructure joint stock commercial banks in Vietnam, finance companies, finance leasing companies?
- Measures to handle bad debts for commercial banks in Vietnam, financial companies and financial leasing companies in the near future?
By 2025, Vietnam will have at least 02 commercial banks in Vietnam in the top 100 largest banks in Asia?
Pursuant to subsection 2, Section II, Article 1 of Decision 689/QD-TTg in 2022, issued by the Prime Minister on June 8, 2022, the following objectives are set:
- Strive to have at least 2-3 commercial banks in the top 100 largest banks (by strength criteria) in Asia; complete the listing of shares of joint stock commercial banks on the Vietnamese stock market and strive to have 1-2 banks list their shares on the international stock market.
Thus, with the implementation of the Project "Restructuring the system of credit institutions associated with bad debt settlement in the period of 2021 - 2025", the goal that the Prime Minister is aiming for is in this period to there are 2 to 3 Vietnamese commercial banks in the top 100 thousand largest banks in Asia.
Will Vietnam have from 2 commercial banks in the top 100 major banks in Asia in the period from 2021 to 2025?
Solution to restructure commercial banks in Vietnam where the state holds more than 50% of charter capital?
Pursuant to subsection 2, section III, Article 1 of Decision 689/QD-TTg in 2022, issued by the Prime Minister on June 8, 2022, a solution was proposed to restructure state-owned commercial banks in the world. 50% of charter capital:
- Develop a plan to improve the efficiency and quality of operations, and organize the implementation of solutions to increase charter capital to improve and improve financial capacity, pilot application of Basel II according to the new method. Advanced method (only for Bank for Agriculture and Rural Development of Vietnam according to the standard method), in which: (i) Period 2022 2023: Increase charter capital from profit after tax, after setting aside funds for the period 2021 - 2023 for joint stock commercial banks where the State holds more than 50% of charter capital and from the state budget for the Bank for Agriculture and Rural Development of Vietnam; (ii) Period 2024 - 2025: Research and advise competent authorities to increase capital in accordance with the law, ensuring system safety.
- The Bank for Agriculture and Rural Development of Vietnam actively develops a plan to comprehensively restructure in order to improve the efficiency and quality of its operations and play a leading role in the field of agricultural and rural credit. ; increase charter capital according to the plan approved by the competent authority; take steps to carry out equitization after the Ministry of Finance completes approving the plan on arrangement of house and land facilities of the bank; listing shares on the domestic stock market.
Solution to restructure joint stock commercial banks in Vietnam, finance companies, finance leasing companies?
Pursuant to subsection 2, section III, Article 1 of Decision 689/QD-TTg in 2022, issued by the Prime Minister on June 8, 2022, a solution was proposed to restructure joint-stock commercial banks, financial companies, and other joint stock commercial banks. The main financial leasing company is as follows:
- On the basis of monitoring data, inspection and evaluation results of independent auditors and ranking results, joint-stock commercial banks, financial corporations and financial corporations are classified into three groups, including: Group 1: Group of joint-stock commercial banks Parts, financial institutions and financial institutions have financial potential, competitiveness, and large scale; Group 2: Group of joint stock commercial banks, financial institutions and financial corporations with financial potential, competitiveness, small and medium scale; Group 3: Joint-stock commercial banks, financial institutions and financial institutions are weak, weak, with many potential risks and unsafe operations to implement solutions:
+ Continue to develop and improve financial capacity in terms of both scale and quality, operational efficiency, competitiveness under the market mechanism, publicity, transparency, and fully meet the standards of management. management and safety of banking operations in accordance with the provisions of law and international practices; application and provision of modern banking products and services;
+ Increase capital and improve the quality of the credit institutions' own capital to ensure that the charter capital level is not lower than the legal capital level as prescribed by law and raise the capital adequacy ratio according to international standards;
+ Encourage participation in purchase, sale, consolidation and merger of credit institutions on a voluntary basis in order to increase the scale, scope of operation and competitiveness;
+ Implement and apply Basel II according to advanced methods, aiming to reach the development level of the Group of 4 leading countries in ASEAN by 2025;
+ Weak and weak credit institutions may consider applying early intervention, special control and other measures in accordance with law, ensuring stability of the credit institution system and political security. and social order and safety.
Thus, with the implementation of a solution like this, by 2025, Vietnam will reach the development level of the group of 4 leading countries in the ASEAN region.
Measures to handle bad debts for commercial banks in Vietnam, financial companies and financial leasing companies in the near future?
Pursuant to subsection 3, section III, Article 1 of Decision 689/QD-TTg in 2022, issued by the Prime Minister on June 8, 2022, the solution to deal with bad debt has been proposed as follows:
- Assess the quality and recoverability of debts to take appropriate handling measures; make setting up and use of risk provisions to deal with bad debts in accordance with the law; supplement and complete legal documents of collateral assets (collateral); debt collection and settlement of collateral; strictly control and reduce operating costs; continue to implement measures to prevent and minimize bad debts arising and improve credit quality; proactively coordinate with local authorities and competent state agencies, especially the Public Security Department, People's Courts, and judgment enforcement agencies at all levels in the process of handling collateral for debt recovery, in order to ensure maximum recovery of debts and limit losses to credit institutions.
- Submit to competent authorities for consideration and grant additional charter capital to reach VND 10,000 billion in the period of 2022 - 2025 to improve financial capacity and operational efficiency of VAMC.
- Strengthen coordination among ministries, branches and relevant agencies in handling bad debts of credit institutions. Chairmen of People's Committees of provinces and centrally run cities should strengthen directing local governments at all levels and relevant agencies to create favorable conditions for credit institutions in the locality in handling bad debts and handling bad debts. Managing collateral for bad debts, especially assisting in the implementation of local administrative procedures to handle bad debts, collateral, legal procedures related to real estate projects as collateral of the bank. goods to gradually remove difficulties, handle collateral for debt recovery; creating conditions for credit institutions to quickly handle collateral of bad debts related to cases being handled locally in accordance with law.
Above are some contents about solutions to implement the project "Restructuring the system of credit institutions associated with bad debt settlement in the period of 2021 - 2025".
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