Restructuring of Credit Institutions: Benefits of depositors guaranteed

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Benefits of depositors will be guaranteed upon the restructuring. Photo: H. Diu

Answering the Press on restructuring of credit institutions, Mr. Nguyen Van Hung, Deputy Chief Inspector, Bank Supervisor in charge of the SBV said, the SBV has built a project on Restructuring the System of Credit Institutions with bad debts for the period 2016-2020.

Currently, the SBV is finalizing the project under the direction of the Government Standing Committee to report to the Politburo. Based on the approval and direction of the Politburo and the Government for the project "Restructuring the system of credit institutions with bad debts for the period 2016-2020", in 2017, the SBV will develop a plan and strengthen resources to implementing drastically and comprehensively solutions in the project.

According to Mr. Hung, the SBV has identified the key goals of restructuring the system of credit institutions with bad debts settlement in 2017 as follow: continuing the macro-economic stability, well controlling inflation; ensuring the major balances of the economy; maintaining and further enhancing the level of safety and transparency of the system of credit institutions.

Besides, bad debt settlement must be associated with the deployment of measures to prevent and minimize new bad debts arising and improve credit quality of credit institutions; promote the role of the Asset Management Company (VAMC) of Credit Institutions of Vietnam in settling bad debts to maintain the bad debt ratio at a safe and sustainable level (below 3% of the total debts).

In particular, the representative of the SBV also said that the objects of restructuring in the coming time are all credit institutions including commercial banks sold at the price of 0 vnd on the principle of ensuring the system stability and protecting the interests of depositors.

"Accordingly, credit institutions must build and submit to competent authorities for approval and deployment of the restructuring plan. As for the “0 vnd - banks", the SBV has its own project to submit to the Government and the Politburo," Mr Hung said.

Besides, according to Mr. Nguyen Van Hung, the solutions will be divided by type, including State-owned commercial banks holding more than 50% of charter capital; joint-stock commercial banks, financial companies and financial service companies; foreign credit institutions; Co-operative Banks, People's Credit Fund and microfinance institutions.

“There are solutions for restructuring healthy credit institutions and substandard credit institutions in each group”. Mr. Hung acknowledged.

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Especially, the representative of the SBV confirmed that one of the core principles of the SBV in the process of restructuring the credit system is ensuring the benefits of depositors. This was confirmed by the SBV during the restructure of the credit institutions in the past and also will be the principle throughout the coming years.