All banks will be subject to restructuring in the coming time.

Mr. Nguyen Van Hung - Deputy Chief Inspector, Banking Supervision, State Bank emphasized that the subjects of restructuring in the coming time include all credit institutions, including compulsory purchase commercial banks (zero-dong banks).

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Mobilizing gold and foreign currency from the people - a difficult problem for the State Bank of Vietnam The State Bank of Vietnam will build a "special" Law to strongly restructure banks and handle bad debts. The State Bank of Vietnam: Will handle 5 banks but ensure system safety and people's rights.

Mr. Nguyen Van Hung - Deputy Chief Inspector, Banking Supervision in charge, State Bank of Vietnam (SBV) said that based on the results achieved in the process of restructuring the system of credit institutions and handling bad debts in the recent period, as well as analyzing and identifying the existing problems and weaknesses of the system of credit institutions, SBV has identified restructuring the system of credit institutions associated with handling bad debts as one of the key tasks of the banking sector in 2017. Accordingly, SBV has developed a Project on Restructuring the system of credit institutions associated with handling bad debts in the period 2016-2020.

"Currently, the State Bank 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 associated with bad debt settlement in the period 2016-2020", in 2017, the State Bank will develop a plan as well as focus resources to drastically and comprehensively implement the solutions in the Project", said the State Bank representative.

At the same time, in 2017, the State Bank will continue to stabilize the macro-economy, control inflation well; ensure major balances of the economy; maintain and continue to improve the safety and soundness of the credit institution system; improve the effectiveness and efficiency of state management and order and discipline along with actively fighting against violations of the law in the monetary and banking sectors.

Promote comprehensive restructuring of finance, operations, and governance of credit institutions (especially weak credit institutions) in forms, measures, and roadmaps appropriate to the specific characteristics of each credit institution and in accordance with the market mechanism on the principle of prudence, ensuring the rights of depositors and maintaining the stability and safety of the system; Control and improve credit quality associated with strengthening bad debt handling according to market principles; perfect the legal framework to support bad debt handling and restructuring of credit institutions;

In addition, the handling of bad debts must be associated with the implementation of preventive measures, minimizing the occurrence of new bad debts and improving the credit quality of credit institutions; promoting the role of the Vietnam Asset Management Company (VAMC) in handling bad debts to ensure maintaining the bad debt ratio at a safe and sustainable level (below 3% of total outstanding debt).

Mr. Nguyen Van Hung also emphasized that the subjects of restructuring in the coming time include all credit institutions, including compulsory purchase banks (zero-dong banks). In principle, it is to ensure system stability and protect depositors' rights. Accordingly, credit institutions must develop, submit to competent authorities for approval and implement restructuring plans. Particularly for compulsory purchase banks, the State Bank has a separate project to submit to the Government and the Politburo.

In addition, the solution groups will also be divided into groups of solutions to restructure credit institutions according to each type, including: Group of State-owned commercial banks holding over 50% of charter capital; Group of joint-stock commercial banks, finance and financial leasing companies; Group of foreign credit institutions; Cooperative banks, People's credit funds and microfinance institutions. In each group, there are restructuring solutions for healthy and weak credit institutions.

"One of the core principles of the State Bank in the process of restructuring the system of credit institutions is to ensure the rights of depositors. This has been affirmed by the State Bank in the process of restructuring credit institutions in the past and is also a consistent principle in the coming years," the Deputy Chief Inspector of the State Bank affirmed.

Accordingly, the forms and measures of restructuring credit institutions are applied in accordance with the specific characteristics of each credit institution and in accordance with the market mechanism on the principle of prudence, ensuring the rights of depositors and maintaining the stability and safety of the system in accordance with the Party's policy on restructuring the financial market, focusing on credit institutions as stated in the Resolution of the Fourth Conference of the 12th Party Central Committee (Resolution No. 05-NQ/TW dated November 1, 2016).

According to Cafef