Finance ministry sets targets for banking system
Illustrative photo (Source: baochinhphu.vn)
The Ministry of Finance (MoF) has issued targets for restructuring banks in a bid to bolster the strength of Vietnam’s financial sector.
The MoF will coordinate with other ministries to set regulations on capital increases for State-owned credit institutions, especially the Bank for Agriculture and Rural Development of Vietnam (Agribank).
The MoF will also coordinate with the State Bank of Vietnam to apply International Financial Reporting Standards (IFRS) in accordance with financial reporting standards in Vietnam.
In addition, it will study and develop standards for debt valuation, including bad debts, with an aim to create a legal basis for debt valuation activities to ensure objectivity in debt valuation.
Ministries and agencies will have to report their results to the MoF’s Department of Banking and Financial Institutions before November 15 every year so the department can compile the results to send them to the SBV before November 30 every year.
The Government issued Decision No689/QĐ-TTg in June this year, which approved the project on restructuring the system of credit institutions associated with bad debt settlements in 2021-25. The project aims to create a clear and substantive change in the restructuring of the banking system.
Under the decision, Vietnam will reduce the number of credit institutions and basically finish the settlement of poor-performing banks by 2025 to make the banking system more healthy and sustainable.
The project encourages investors to participate in the purchase, sale, consolidation and merger of credit institutions voluntarily to increase the size and competitiveness of the institutions to make the country's banking system among the top four in ASEAN by 2025.
Under the project, Vietnam also targets to have at least two to three commercial banks in the top 100 strongest banks in Asia by 2025.
The project stipulates that commercial banks' capital adequacy ratio will reach at least 10-11% by 2023 and at least 11-12% by 2025.
Large-sized banks, excluding weak ones, must have a minimum charter capital of 15 trillion VND, and the number for small- and medium-sized banks will be 5 trillion VND by 2025. The minimum charter capital required for financial companies and financial leasing companies is 750 billion VND and 450 billion VND, respectively.
For weak banks under the central bank's special control, the capital increase will be implemented according to plans approved by the competent authority.
The project also directs the Vietnam Asset Management Company to submit to competent authorities for consideration a plan to increase its capital to 10 trillion VND in 2022-25 to improve the financial capacity and operational efficiency of the agency in dealing with bad debts.
According to the project, the bad debt ratio on the balance sheet of credit institutions, excluding those of weak commercial banks, will be less than 3% by the end of 2025./.
Related News
![Closely and effectively managing State fund](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/082024/29/15/croped/11moi2024082708504720240829152352.jpg?240831085647)
Closely and effectively managing State fund
08:56 | 31/08/2024 Finance
![Vietnam made good progress in reforming public financial management](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/062024/25/22/croped/z5568575617382-fe5c166c0b8f4ad348f1790c19c3604d2024062413573120240625221626.jpg?240626103755)
Vietnam made good progress in reforming public financial management
10:37 | 26/06/2024 Finance
![Enterprises expect the stock market to be upgraded by 2025](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/062024/12/14/croped/112024060409301520240612142624.jpg?240616100319)
Enterprises expect the stock market to be upgraded by 2025
10:03 | 16/06/2024 Finance
![How to stabilize the gold market?](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/052024/30/10/croped/4-13202405061820432024052018413920240530105609.jpg?240603095317)
How to stabilize the gold market?
09:53 | 03/06/2024 Headlines
Latest News
![Continue to publicly disburse public investment capital, many key projects have low rates](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/06/10/croped/04e5ce677d62da3c83732024083010363520240906103842.jpg?240907090149)
Continue to publicly disburse public investment capital, many key projects have low rates
09:01 | 07/09/2024 Finance
![Public investment disbursement rate in 8 months reaches about 40.5% of the plan](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/05/16/cao-toc162024090410541320240905164409.jpg?rt=20240905164412?240906091311)
Public investment disbursement rate in 8 months reaches about 40.5% of the plan
09:13 | 06/09/2024 Finance
![State revenue in 8 months increased by about 18%](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/05/15/thu-chi-ngan-sach-nha-nuoc-6-thang-dau-nam-202420240805121101-120240905154834.jpg?rt=20240905154836?240905041617)
State revenue in 8 months increased by about 18%
16:16 | 05/09/2024 Finance
![Challenges of collecting e-commerce tax losses](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/04/14/croped/369331-thue-190824-432420240904142722.0275820.jpg?240904022745)
Challenges of collecting e-commerce tax losses
14:27 | 04/09/2024 Finance
More News
![Green finance brings both new opportunities, challenges to Vietnam: Experts](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/03/19/croped/a132s23-9210-903120240903193838.2989570.jpg?240903073918)
Green finance brings both new opportunities, challenges to Vietnam: Experts
19:39 | 03/09/2024 Finance
![Vietnam has 4 enterprises providing credit rating services](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/082024/29/15/croped/tn202403171632072024082709393420240829154026.jpg?240903092901)
Vietnam has 4 enterprises providing credit rating services
09:28 | 03/09/2024 Finance
![Banks minimize costs, optimize profits](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/01/22/croped/142024082311031520240901224542.jpg?240902070531)
Banks minimize costs, optimize profits
19:05 | 02/09/2024 Finance
![Amending the law to unblock and effectively use public property](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/01/23/croped/z5777947999438-5a93669f4c14835b407dd8061169e5362024082916480320240901230738.jpg?240902082622)
Amending the law to unblock and effectively use public property
08:26 | 02/09/2024 Finance
![Pressure on exchange rate plunges](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/082024/30/14/anh-man-hinh-2024-08-29-luc-1422112024082914222520240830145711.png?rt=20240830145713?240901060205)
Pressure on exchange rate plunges
18:02 | 01/09/2024 Finance
![Corporate bond trading floor develops strongly after one-year operation](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/082024/27/16/112024082310234820240827162711.jpg?rt=20240827162714?240901055919)
Corporate bond trading floor develops strongly after one-year operation
17:59 | 01/09/2024 Finance
![New eTax Mobile application 3.2.0 officially launched](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/082024/30/15/picture1-new2024082918412720240830155958.png?rt=20240830160000?240831085607)
New eTax Mobile application 3.2.0 officially launched
08:56 | 31/08/2024 Finance
![Vietnam and Japan promote cooperation](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/082024/29/10/img-4133jfif2024082815273820240829104455.jpg?rt=20240829104458?240830073006)
Vietnam and Japan promote cooperation
19:30 | 30/08/2024 Finance
![Crypto Assets should be managed rather than prohibited](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/082024/30/13/croped/5e4a4ba81fdbb885e1ca2024082914393020240830134223.jpg?240830072912)
Crypto Assets should be managed rather than prohibited
19:29 | 30/08/2024 Finance
Your care
![Continue to publicly disburse public investment capital, many key projects have low rates](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/06/10/croped/medium/04e5ce677d62da3c83732024083010363520240906103842.jpg?240907090149)
Continue to publicly disburse public investment capital, many key projects have low rates
09:01 | 07/09/2024 Finance
![Public investment disbursement rate in 8 months reaches about 40.5% of the plan](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/05/16/medium/cao-toc162024090410541320240905164409.jpg?rt=20240905164412?240906091311)
Public investment disbursement rate in 8 months reaches about 40.5% of the plan
09:13 | 06/09/2024 Finance
![State revenue in 8 months increased by about 18%](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/05/15/medium/thu-chi-ngan-sach-nha-nuoc-6-thang-dau-nam-202420240805121101-120240905154834.jpg?rt=20240905154836?240905041617)
State revenue in 8 months increased by about 18%
16:16 | 05/09/2024 Finance
![Challenges of collecting e-commerce tax losses](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/04/14/croped/medium/369331-thue-190824-432420240904142722.0275820.jpg?240904022745)
Challenges of collecting e-commerce tax losses
14:27 | 04/09/2024 Finance
![Green finance brings both new opportunities, challenges to Vietnam: Experts](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/03/19/croped/medium/a132s23-9210-903120240903193838.2989570.jpg?240903073918)
Green finance brings both new opportunities, challenges to Vietnam: Experts
19:39 | 03/09/2024 Finance