By 2025, basically handle weak banks

The specific objective of the Project is to pilot the application of Basel II according to the advanced method in commercial banks where the State holds a controlling stake and joint stock commercial banks with good governance quality have been completed. apply Basel II according to the standard method by the end of 2025; striving that by 2023, the capital adequacy ratio (CAR) of commercial banks will reach at least 10 – 11%; by 2025, reaching at least 11 – 12%.

The project will create a clear and substantive shift in the restructuring of the system of credit institutions associated with handling bad debt; striving by 2025 to reduce the number of credit institutions, basically deal with weak banks, prevent new weak banks from arising, the system of credit institutions are healthy and develop sustainably.

At the same time, strive for the end of 2025 the bad debt ratio on the balance sheet of the system of credit institutions, the bad debt sold to Vietnam Asset Management Company Limited (VAMC). unresolved, recovered and potential debt becomes bad debt at less than 3% (excluding weak commercial banks).

The project outlines a group of solutions to restructure credit institutions. Specifically, credit institutions develop plans and organize the implementation of appropriate solutions for each group/block of credit institutions, including: Increasing charter capital, raising capital adequacy ratio to enhance capacity financial strength and safety of banking operations, improving governance, administration, credit quality…; encourage participation in the purchase, sale, consolidation and merger of credit institutions on a voluntary basis in order to increase the scale, scope of operation and competitiveness;

Deploy and apply Basel II by advanced method, aiming to reach the development level of the group of 4 leading countries in ASEAN by 2025. Weak and weak credit institutions apply handling measures according to regulations provisions of law to ensure the stability of the credit institution system, political security and social order and safety.

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