New regulations on bank restructuring

State Bank of Vietnam (SBV) Governor Nguyen Van Binh will announce this month new rules governing the restructuring of the banking sector.

Some 17 SBV circulars and other documents will be issued in June covering a variety of matters including credit institution rankings and reorganization, particularly mergers and acquisitions (M&A).

The circulars will regulate the M&A activities of banks, financial institutions, leasing companies and credit funds.

The governor will also make announcements on risk assessments, co-ordination between the central bank and the Ministry of Finance, and on preferential interest rates for some organizations and individuals.

The SBV said one of its key tasks this year is to step up inspections and supervision of credit institutions to make sure they are secure and conform with monetary and banking laws.

It will closely observe the liquidity and credit growth of the entire banking system to gradually reduce the number of vulnerable institutions.

These matters are already mentioned in the central bank's Directive No 01 issued in the first quarter on ensuring bank security and efficiency, in accordance with the Government's socio-economic development goals for 2012.

VNA/VOV online