Gov't approves project for restructuring credit organizations in 2021-2025
VGP – The Government has approved a project for restructuring credit organizations in association with handling bad debts in the 2021-2025 period.
The project targets to gear up the application of Basel II at commercial banks in which the State holds controlling shares and at joint stock commercial banks; raise the capital adequacy ratio of commercial banks to 10-11 percent by 2023 and 11-12 percent by 2025.
Each of the country's leading commercial banks is expected to raise charter capital to at least VND 50,000-15,000 billion by 2025 while each of credit organizations needs to increase charter capital to at least VND450-750 billion.
Weak commercial banks and credit organizations subject to special control will have to undergo restructuring and capital increase plans approved by competent authorities.
The bad debt rate of credit organizations is expected to fall below 3 percent by the end of 2025./.
