Vietnam Restructuring System Tender

Deputy Prime Minister Le Minh Khai has just signed Decision No. 689QD-TTg approving the project Restructuring the system of credit institutions in association with bad debt settlement in the 2021-2025 period.This project aims to create a clear and substantive change in the restructuring of the system of credit institutions associated with dealing with bad debts strive to reduce the number of credit institutions by 2025 basically deal with weak banks prevent new weak banks from arising the system of credit institutions are healthy and develop sustainably Strive to have at least 2-3 commercial banks in the top 100 largest banks by strength criteria in Asia.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.Must ensure the minimum charter capitalAccording to the scheme credit institutions must take measures to ensure their charter capital by 2025 as followsi For existing credit institutions excluding commercial banks financial companies weak weakspecially controlled financial leasing companies the restructuring plan will be implemented due to approval authorityFor commercial banks the group of domestic commercial banks with financial potential competitive capacity large-scale charter capital must be at least 15000 billion VND group of domestic commercial banks with financial potential competitiveness small and medium scale and commercial banks with foreign capital the minimum charter capital is 5000 billion VND.For CTTC the minimum charter capital is 750 billion VND.For financial corporations the minimum charter capital is 450 billion VND.ii For weak weakspecially controlled commercial banks financial institutions and financial institutions the restructuring plan approved by the competent authority shall be implemented the capital increase plan shall comply with the approval of the competent authority.Striving to the end of 2025 the bad debt ratio on the balance sheet of the system of credit institutions bad debts sold to one member limited liability company for asset management of Vietnamese credit institutions VAMC have not been handled recovery and latent debt becomes bad debt at less than 3 excluding weak commercial banks.Encourage purchase sale consolidation and merger of credit institutionsThe project specifies a group of solutions to restructure credit institutions. Specifically credit institutions develop plans and organize the implementation of appropriate solutions for each groupblock of credit institutions including increasing charter capital raising capital adequacy ratio to enhance financial capacity and safety. banking activities improving management and administration capacity 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 shall apply handling measures in accordance with legal regulations. laws to ensure stability of the credit institutions system political security and social order and safety.In which for commercial banks where the State holds more than 50 of charter capital excluding banks with compulsory purchase SBVDevelop a plan to improve the efficiency and quality of operations and organize the implementation of solutions to increase charter capital to improve and improve financial capacity pilot application of Basel II according to the methodology. advanced only for Bank for Agriculture and Rural Development of Vietnam according to the standard method in which in the period of 2022 - 2023 the charter capital will be increased from after-tax profits after setting aside funds for the next period. the 2021 - 2023 period for joint-stock commercial banks where the State holds more than 50 of charter capital and from the state budget for the Bank for Agriculture and Rural Development of Vietnam period 2024 - 2025 research and advise competent authorities to increase capital in accordance with the law ensuring system safety.Particularly the Bank for Agriculture and Rural Development of Vietnam actively develops a plan to comprehensively restructure in order to improve the efficiency and quality of its operations and play a leading role in the field of agricultural and rural credit. increase charter capital according to the plan approved by the competent authority take steps to carry out equitization after the Ministry of Finance completes approving the plan on arrangement of house and land facilities of the bank listing shares on the domestic stock market.