Gov’t determined to fix weak banks

VGP – The Government has drastically fixed weak banks and non-performing loans to ensure the safety of the banking system, Deputy PM Truong Hoa Binh told legislators on Monday.

May 22, 2017 6:18 PM GMT+7

Deputy PM Truong Hoa Binh speaks at the opening ceremony of the 3rd plenary session of the National Assembly in Ha Noi on May 22, 2017. Photo: VGP

He said the plan to restructure credit organizations between 2011 and 2015 has brought about initial outcomes, however, handling weak banks and bad debts has been a difficult process.

The Government will present a draft resolution on fixing bad debts to the National Assembly’s 3^rd ongoing session for consideration and approval, amendments to the Law on Credit Organizations for consideration, Binh said.

Once the resolution is approved by the Legislature, the Government will focus on improving legal documents, mechanisms and policies for restructuring credit organizations.

It will also improve plans to fix weak banks in line with market rules in an expeditious, drastic and cautious manner to safeguard the banking system and interests of depositors, Binh stressed.

Deputy PM Binh also pointed out that the process of rearranging and equitizing State-owned enterprises (SOEs) and divesting State capital has remained slow.

The Government will continue accelerating SOEs equitization process while enhancing inspection and supervision to avoid capital losses during the process./.

By Huong Giang