By Document No. 1382/QD-NHNN, the Governor of the State Bank of Vietnam (SBV) has issued the Action Plan of the banking sector to implement the Scheme of “Restructuring the credit institution system associated with the handling of non-performing loans in the 2021 - 2025 period" (the banking sector’s Action Plan).
Accordingly, the goal of the banking sector’s Action Plan is to disseminate the guidance of the SBV among the entities in the banking sector for the implementation of the objectives, tasks and solutions related to the restructuring the credit institution system associated with the handling of non-performing loans (NPLs) in the 2021 - 2025 period, in line with Decision No. 689/QD-TTg dated June 08, 2022 of the Prime Minister approving the Scheme of “Restructuring the credit institution system associated with the handling of non-performing loans in the 2021 - 2025 period” (Decision No. 689/QD-TTg), and specific substances in the Scheme.
The banking sector’s Action Plan has been developed on the basis of Decision No. 689/QD-TTg and the Scheme. This Action Plan closely follows the perspectives, orientations, objectives, tasks and solutions for the restructuring of the credit institution system associated with the handling of NPLs in the 2021 - 2025 period, as stated in Decision No. 689/QD-TTg and the Scheme; promoting the spirit of proactiveness and the efforts of each entity, and the partnership and coordination among the entities both inside and outside the banking sector, in order to reflect the strong determination for the successful accomplishment of the objectives, tasks and solutions as set out in the Scheme.
The banking sector’s Action Plan identifies specific tasks, solutions and assignments for the relevant entities to implement, specifically as follows:
Improving the legal frameworks on currency, banking operations, restructuring the credit institution system and handling of NPLs on the basis of full compliance with the rules of the market economy, in accordance with the international practices and the conditions of Vietnam.
Regarding to solutions to improve the efficiency and quality of the operations of the credit institution system, the banking sector’s Action Plan mentions the specific substances related to: Developing the financial capacity, the credit quality, the operational efficiency, the business administration, and the operational transparency of the credit institutions; Modernizing the banks, improving their competitiveness; Developing a digital banking model, effectively implementing the Digital Transformation Plan of the banking sector; Promoting non-cash payments; Continuing to apply and implement Basel II standards; Developing the network of credit institutions; Improving the efficiency of the credit resource allocation; Promoting green credit, green banking, investment in low-carbon production and consumption industries; Developing non-credit banking services.
Especially, the banking sector’s Action Plan has specific provisions on the handling of NPLs, including: Handling of NPLs, improving the credit quality among the credit institutions; Improving the financial capacity and the operational efficiency of Vietnam Asset Management Company (VAMC).
The banking sector’s Action Plan also identifies specific and detailed tasks and solutions for each group/category of credit institutions.
LK