The Governor of the State Bank of Vietnam (SBV) issued Document No. 5056/NHNN-TTGSNH on July 6 on temporarily terminating the expansion of credit institution network.
Accordingly, in order to accomplishing the objective of declining the NPL ratio to below 3% before October 1st, 2015, the SBV Governor required the Banking Supervision Agency and the SBV municipal and provincial branches to implement the following substances:
- Not considering and approving the requests of opening additional branches, transaction offices, ATMs, representative offices and providing additional operations (excluding the special cases permitted by the SBV Governor) until credit institutions complete all criteria of NPL resolution for 2015 in accordance with the assigned schedule and decline the NPL ratio to below 3% before October 1st, 2015. Credit institutions, which are not able to complete the NPL resolution plan for 2015 and reach the NPL ratio of below 3% before October 1st, 2015, will not get the permission for the above-mentioned requests until December 31, 2015 at the earliest (the SBV will announce the result of NPL resolution of each credit institutions).
- Strictly inspecting and monitoring credit institutions and accelerating the NPL resolution to accomplish the objective of declining the NPL ratio to below 3% before October 1st, 2015.
On the same day, the SBV Governor issued Document No. 5055/NHNN-TTGSNH to require foreign bank branches, joint-venture banks and wholly foreign-owned banks to formulate NPL resolution plans and strictly implement measures on NPL resolution in order to decline the NPL ratio to below 3% before October 1st, 205; at the same time, send reports on NPL resolution planning to the SBV (via Banking Supervision Agency) before July 20, 2015.
TLH