The State Bank has submitted a plan to restructure SCB.

The above content is mentioned in the Government's report to the National Assembly and the National Assembly Standing Committee on the implementation of a number of thematic supervision and questioning resolutions since the beginning of the term.

Accordingly, in the banking sector, the Government said that up to now, the State Bank has submitted to this agency for consideration and decision on the restructuring policy of SCB - a bank placed under special control from October 2022.

At that time, after many branches and transaction offices of SCB recorded a situation of people coming to withdraw money at the same time, the State Bank put this bank under special control. This is a professional measure to strictly control and limit negative impacts on banks and the credit institution system in general. In the history of the banking industry, there have been many banks that have been put under special control but have since recovered and developed strongly.

The restructuring policy of SCB was proposed based on a report assessing the overall situation and proposals from the bank itself and the SCB Special Control Board. Thus, after nearly a year of being placed under special control, the restructuring policy of SCB has been "finalized" by the management agency.

In addition, up to now, the State Bank has also submitted and received approval from competent authorities for the policy of compulsory transfer of 4 previously specially controlled banks, including Construction Bank (CBBank), Ocean Bank (OceanBank), Global Petroleum Bank (GP Bank) and DongA Bank (DongABank).

The relevant parties are continuing to implement the following contents after the policy is approved by the competent authority. After that, the State Bank will submit to the Government for approval the restructuring plan of these banks.

The restructuring of weak banks and SCB has been noted by Prime Minister Pham Minh Chinh to ensure transparency and no loss of assets.

In addition to banks, in this report, the Government said that weak non-bank credit institutions are also being studied by the State Bank for restructuring policies and orientations.

Examining this content, the National Assembly's examining body recognized that the search and negotiation for banks eligible to receive compulsory transfers (weak financial capacity, management, and experience in credit organization structure) was lengthy and difficult due to the large dependence on the voluntary participation of banks.

On the other hand, banks also need time to convince shareholders, especially strategic and foreign shareholders, to agree to participate in the compulsory transfer. The mechanism and financial resources to handle weak credit institutions also have many shortcomings, obstacles, and lengthy procedures.

Regarding bad debt handling, the auditing agency assessed that the recent process has been positive. Credit institutions have tried to improve asset quality, control credit quality and handle bad debt, especially efforts to handle bad debt by urging debt collection and using risk provisions.

By the end of May, the entire banking system had handled more than VND1.64 trillion of bad debt, of which 74.5% was handled by credit institutions themselves; the remaining debt sold to VAMC and other organizations was about 25.5%.

Bad debt settlement determined under Resolution 42 was also positive, with nearly VND420,000 billion resolved by the end of May.