Delegation of National Assembly of Nghe An province collects comments on Law on Credit Institutions (amended)

Overview of the conference. Photo: Thu Huyen

The Draft Law on Credit Institutions (amended) consists of 10 chapters and 200 articles regulating the establishment, organization, operation, special control, reorganization, dissolution, and bankruptcy of credit institutions; the establishment, organization, and operation of foreign bank branches, representative offices of foreign credit institutions, and other foreign organizations with banking activities; the handling of bad debts and the handling of collateral assets of bad debts; the establishment, organization, operation, reorganization, dissolution, bankruptcy, bad debt handling, and the handling of collateral assets of bad debts of policy banks shall be implemented in accordance with the Government's regulations. The Draft Law inherits the current Law on Credit Institutions and adds 1 chapter on the handling of bad debts and collateral assets of bad debts.

Comrade Thai Thi An Chung - Member of the Provincial Party Committee, Deputy Head of the National Assembly Delegation of Nghe An province spoke at the conference. Photo: Thu Huyen

At the conference, delegates contributed many opinions focusing on regulations on the organization, management and operation of credit institutions; regulations on e-banking activities and regulations on ensuring the safety of credit institutions' operations; regulations on handling bad debts and handling collateral of bad debts; regulations on restructuring weak credit institutions; regulations on managing, closing and opening bank accounts, etc.

Among them, the issue that attracted the most attention was the handling of collateral assets of bad debts. Delegates also emphasized that the rights and responsibilities of borrowers must be clearly and precisely defined in the Law on Credit Institutions (amended). In particular, the responsibilities of borrowers must be detailed to avoid evading responsibility and easily handle the problem of bad debts of banks...

Director of Vietcombank Vinh branch gives comments on the draft Law on Credit Institutions (amended). Photo: Thu Huyen

Commenting on Article 93, Clause 5 of the draft, which stipulates that credit institutions have the right to request borrowers to report on the use of loan capital and provide documents proving that the loan capital is used for the right purpose; Mr. Le Hong Quang - Director of Vietcombank Vinh branch suggested that in addition to documents, the phrase "data" should be added to be consistent with the granting of credit through electronic means.

Director of Agribank Nghe An branch gives comments on the draft Law. Photo: Thu Huyen

Ms. Le Thi Mong Ly - Deputy Director of BIDV Investment Bank, Nghe An branch, proposed that in section a, clause 2, Article 93 of the draft, when reviewing credit granting and checking the use of loans, it is necessary to clearly stipulate how small the value of a loan for living needs is so that credit institutions can easily implement the provisions of the Law on Credit Institutions.

Regarding the regulation on credit granting restrictions in Article 126 of the draft (credit institutions are not allowed to grant unsecured credit, grant credit with preferential conditions to the following subjects: credit appraisers and approvers at that credit institution), Ms. Ly said that this content should be removed because the number of people appraising and approving credit is quite large as this is a major business of the bank. In the work of approving credit granting, the stages have been separated, ensuring no conflict of interest, so the credit appraiser and approver is just a professional position like other businesses: credit proposal, disbursement, transaction officer, etc.

Delegates attending the conference. Photo: Thu Huyen

At the conference, a number of issues related to banking services, financial insurance, etc. were discussed by delegates. The State Bank leader said that the issue of financial education and risk warning is being rectified and overcome by the Bank.

Speaking at the Conference, Comrade Thai Thi An Chung - Deputy Head of the Provincial National Assembly Delegation highly appreciated the opinions that the delegates contributed to the draft Law on Credit Institutions (amended). The Provincial National Assembly Delegation will synthesize the opinions of representatives of credit institutions, departments and branches to complete the Law project with high quality. At the same time, agencies and units need to continue to research and send in-depth comments to the Provincial National Assembly Delegation for synthesis.