Restricting the use of budget capital to handle bad debt
That is the affirmation of the State Bank (SBV) in information sent to the press this afternoon, September 16.
The real estate market is frozen, selling mortgaged real estate to handle bad debt is facing many difficulties - Photo: VIET DUNG
Specifically, the State Bank said the principle of handling bad debt is to mobilize all resources in society and limit the use of budget capital.
Also according to the State Bank, in the first 8 months of the year, banks actively reduced operating costs, for example, many banks reduced salary costs by 20-50%, limited dividend and profit distribution, improved the quality of credit activities...
Basically, banks continue to operate stably, and the quality of operations is gradually improving. As of the first 8 months of the year, the total charter capital of the entire system was VND404,500 billion, an increase of VND10,000 billion compared to the end of 2012. Banks have initially restructured their business operations and asset portfolios, oriented their business strategies, and improved their competitiveness.
Thanks to the drastic and strong implementation of solutions to handle bad debt, the growth rate of bad debt has gradually decreased. By the end of July, according to reports from banks, the total bad debt of the entire system had decreased to VND139,000 billion, accounting for 4.58% of total outstanding debt.
The State Bank of Vietnam assessed that the macro economy in 2013 had positive signs but still faced many difficulties. To deal with bad debts fundamentally and completely, the State Bank of Vietnam has actively directed banks to lend at reasonable interest rates, contributing to removing difficulties for production and business, promoting economic growth and stabilizing the macro economy...
The goal set by the end of 2015 is that the banking system will basically handle the current bad debt, effectively control and improve credit quality to better meet the increasing demand for capital and banking services for socio-economic development.
Regarding the restructuring of weak commercial banks, the State Bank of Vietnam said that up to now, 8/9 weak banks have been restructured. For the remaining weak banks, the State Bank of Vietnam is considering and asking for the Prime Minister's direction on a plan to self-strengthen and rectify based on the participation of foreign banks' capital.
In addition, the State Bank is continuing to evaluate and identify a number of weak banks and requesting these banks to develop restructuring plans for approval by the State Bank to ensure the complete and fundamental handling of weak banks in 2013.
| Ending the “goldenization” of the banking system Regarding the gold market, the State Bank also affirmed that it has stabilized and controlled the market and eliminated all risks related to gold from the operations of credit institutions. In particular, the management policies have ended the "goldenization" of the banking system. Notably, this agency also mentioned the prevention of speculation and price manipulation thanks to 57 gold bar auctions that were conducted smoothly, safely, publicly and transparently. According to the State Bank of Vietnam, after more than 5 months, 57 gold bar auctions were held with about 57 tons of SJC gold bars sold to the market. Of which, about 30 tons of gold were used by banks to pay off the balance of mobilized gold, the rest was sold by credit institutions and businesses to meet the demand for gold in the market. |
According to Tuoi Tre - TH
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