PM demands continued restructuring of credit organizations

Update: 12:16 | 28/07/2020
The steering committee for the restructuring of credit organisations held a meeting in Ha Noi on July 27 under the chair of Prime Minister Nguyen Xuan Phuc.
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pm demands continued restructuring of credit organisations
Prime Minister Nguyen Xuan Phuc chairs the meeting of the steering committee for the restructuring of credit organizations on July 27. (Photo: VNA)

At the event, participants reviewed the implementation of the National Assembly’s Resolution 42 and Project 1058 on restructuring the credit institution system in association with bad debt settlement for 2016-2020.

The Government leader shared participants’ view that over the last three years, the whole system of credit organizations has improved considerably.

In particular, total asset value and equity have increased by 5 percent while the rate of non-performing loans (NPLs) has been brought down to 1.63 percent, or 4.43 percent if the NPLs sold to the Vietnam Asset Management Company and possible NPLs are included.

The divestment of their capital from non-core businesses and the settlement of cross-ownership and -investment have been carried out actively. As a result, 2.2 trillion VND (95.2 million USD) has been divested, and manipulation by big shareholders has been basically solved.

Almost the entire system has been rectified and consolidated. Notably, State commercial banks have continued to play an important role as their total assets account for 42.8 percent and their loans 47.9 percent of the whole system’s.

Besides, non-bank credit institutions, people’s credit funds and microfinance organizations have been restructured and operated more healthily, helping to curb loan sharking.

About 557 trillion VND of NPLs has been dealt with, 76 percent of which has been handled by credit organizations themselves.

At the meeting, PM Phuc requested the continuation of synchronous solutions to step up the restructuring of the credit organization system, settle NPLs, ensure the system’s efficiency and safety as well as monetary-credit security, and make use of the restructuring to support socio-economic recovery and development in the face of COVID-19 impacts.

He asked the State Bank of Vietnam to keep devising key tasks and solutions to achieve the set targets.

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(Source: VNA)