Banking sector set to keep bad debt below 3 pct

Illustrative image (Source: VNA)

 Hanoi (VNA) – The banking sector has set the goal to keep bad debt ratio at a safe level of below three percent.

The target is a part of a freshly-issued action plan in an attempt to improve business climate, enhance national competitiveness and support business development during 2016-2017 with a vision to 2020.

Under the plan, the sector will urgently develop a project on restructuring the system of credit institutions in combination with settling bad debt for 2016-2020. 
Another project on developing people’s credit funds towards 2020 and orientations until 2030 will also be built and promptly implemented.

The plan also comprises a series of drastic measures to deal with bad debts, particularly those of weak credit organisations, including the purchasing and sale of bad debts under market mechanism, while gradually forming a bad debt market. 

Besides, the sector will intensify and reform inspections of banks towards international standards and practices, while tightening supervisions of banking activities to prevent law violations and ensure businesses’ access to credit.-VNA