Lawmakers adopted Resolution on economic restructuring plan for the 2021-2025 period with 460 out of 465 approval votes during the ongoing second session of the 15th legislature in Hanoi on November 12.
The Vietnam Maritime Commercial Joint Stock Bank (MSB) said it has completed the second pillar of Basel II standards that is supervisory review nearly one year ahead of the schedule set by the State Bank of Vietnam.
Banking experts are of the view that despite some relaxation for banks that failed to meet Basel II standards, the State Bank of Vietnam (SBV) should stay firm to the Basel II target.
The application of Basel II is considered the fundamental restructuring solution creating the foundation for promoting the safety, healthy development and competitiveness of the banking system.
Vietnam’s credit growth is slowing and can fall behind the central bank’s target of 14 percent for 2019, causing concerns that it could make it difficult for businesses to access bank loans during the remaining months of the year.
If banks cannot increase charter capital, they’ll have to reduce credit growth, which could harm the provision of capital to serve economic development.
While private joint stock banks have had some success in raising their charter capital, major banks, except for Vietcombank, are still struggling with this work.
Some experts have said when a bank is unable to have a minimum capital adequacy ratio (CAR) of 8 percent for a long time, it could be put under special control by the central bank.
The Vietnam Maritime Commercial Joint Stock Bank (MSB) has been given an approval from the State Bank of Vietnam (SBV) to apply Basel II standards, raising the total number of Vietnamese banks meeting the global norms to nine.
Authorities have basically agreed on the State Bank of Vietnam (SBV)’s proposal to allow large State-owned commercial banks to retain their dividends or pay them in shares to increase capital.
The Asia Commercial Bank (ACB) late last week was officially given approval from the State Bank of Vietnam (SBV) to apply Basel II standards, raising the number of Vietnamese banks meeting the global norms ahead of the SBV’s schedule to seven.
The State Bank of Vietnam (SBV) has continued to urge relevant ministries to revise legal frameworks in order to allow large State-owned commercial banks to use the State budget for their capital increases.
Some commercial banks expect to get high credit growth limits set by the central bank this year as they have so far met Basel II’s capital safety and risk management standards ahead of schedule.
Leaders of the State Bank of Vietnam (SBV) and commercial banks have asked the government to promptly handle capital increase for State-owned commercial banks.
The State Bank of Vietnam has allowed Vietcombank to apply minimum capital adequacy ratio requirements following Basel II standards one year earlier than the deadline initially set by the central bank.
Politics
