BY THE END OF 2025, POTENTIAL NON-PERFORMING LOANS WILL BE LESS THAN 3%
This noticeable content is prescribed in the Prime Minister’s Decision No. 689/QD-TTg dated June 08, 2022, approving the Scheme on "Restructuring the credit institution system associated with handling of non-performing loans for the 2021 - 2025 period".
Accordingly, strive that by the end of 2025, the on-balance sheet non-performing loans ratio of the credit institution system, non-performing loans sold to Vietnam Asset Management Company (VAMC) which have not been handled, unresolved, recovered and potential non-performing loans will be less than 3% (excluding poor commercial banks).
Besides, strive to have at least two to three commercial banks in the top 100 largest banks (in terms of strength criteria) in Asia; complete the listing of shares of joint-stock commercial banks on the Vietnamese stock market and strive to have one to two banks listed in international stock markets; strive to raise the proportion of revenues from non-credit services to total revenues of commercial banks to about 16 - 17% by the end of 2025.
In order to achieve the above-mentioned targets, it is necessary to perfect the legal framework on currency, banking operations, for restructuring and handling non-performing loans on the basis of fully observing the rules of the market economy in conformity with international practices, and conditions of Vietnam; have appropriate solutions to encourage banks to implement Basel II according to advanced methods, aiming to deploy Basel III when credit institutions have sufficient financial and human conditions, etc.
This Decision takes effect from the signing date.
