To urgently implement the conclusion of plan to handle Class E banks in Vietnam

To urgently implement the conclusion of plan to handle Class E banks in Vietnam (Source: internet)

Vietnam's Resolution 130/NQ-CP on the government-local online conference and the September 2022 regular government meeting

Urgently implement the conclusion on the plan to handle Class E banks

The Government requests the State Bank of Vietnam to assume the prime responsibility for, and coordinate with agencies and localities in:

Continue to operate monetary policy cautiously and firmly, ensuring initiative, flexibility, and efficiency; coordinate synchronously, closely, and harmoniously with fiscal and other policies in order to control inflation; contribute to stabilizing the macro-economy; stabilize the foreign currency market; and appropriate lending interest rates.

The press continues to communicate on solutions for managing monetary policy and banking activities; fostering public trust; promoting growth; stabilizing production and business; and avoiding information that creates psychological expectations of inflation and exchange rate fluctuations.

Expeditiously implement the Politburo's conclusions on the handling plan for weak banks; complete the plan to handle the remaining weak commercial banks.

In addition, directing the Ministries of Health, Education and Training, and Industry and Trade of Vietnam to closely coordinate with the Ministry of Planning and Investment, the Ministry of Finance, the State Bank of Vietnam and relevant agencies to study methods and projects, including a roadmap to increase electricity prices, medical services, education, etc., is appropriate on the basis of consideration and full assessment of the impact on inflation and the people.

See more content in Vietnam's Resolution 130/NQ-CP dated October 6, 2022.

By 2025, basically handle Class E banks

2022, approving the project "Restructuring the system of credit institutions in association with dealing with bad debts in the period of 2021–2025" issued by the Prime Minister of Vietnam  on June 8, 2022.

In which, set the following general objectives:

- Create a clear and substantive shift in the restructuring of the system of credit institutions associated with dealing with bad debts; strive to reduce the number of credit institutions by 2025; basically deal with weak banks; prevent new weak banks from arising; and make the system of credit institutions healthy and develop sustainably.

- Develop a system of credit institutions in the direction that domestic credit institutions play a key role, operating in a healthy, quality, efficient, public and transparent manner; meeting the standards of banking safety as prescribed by law and approaching international practices; aiming to reach the level of development of the Group of 4 leading countries in the ASEAN region.

- Step up the handling of bad debts; improve credit quality; prevent and minimize new bad debts from arising; improve the financial capacity of credit institutions; prevent cross-investment, cross-ownership, and manipulative and dominant ownership in relevant credit institutions.

Chau Thanh

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