Consideration has not yet passed the Law on Credit Institutions (amended)

On the afternoon of November 23, continuing the 6th Session, the National Assembly discussed in the hall the Draft Law on Credit Institutions (amended).

Reporting on some major issues of acceptance, explanation and revision of the draft, Mr. Vu Hong Thanh - Chairman of the Economic Committee of the National Assembly said that the Draft Law after being accepted and revised includes 15 chapters and 203 articles (an increase of 2 chapters and 8 articles, of which 158 articles were revised and revised compared to the Draft Law submitted to the National Assembly at the 5th Session).

Chairman Vu Hong Thanh said that compared to the draft law submitted to the National Assembly at the 5th Session, many contents have been researched, absorbed, and revised by agencies in the draft law.

The review and completion were conducted carefully and thoroughly, closely following the guidelines and policies stated in the Resolution of the 13th National Congress of the Party and the Resolution of the National Assembly.

In particular, the task is to continue to perfect the legal framework on bad debt handling, end cross-ownership; promote the application of science and technology, especially digital technology in the banking sector and develop modern banking products and services.

Continue to strengthen the financial capacity, management and credit quality of credit institutions and people's credit funds to ensure safe, effective, stable and sustainable operations.

At the same time, create changes in the management of credit institutions, increase the resilience of credit institutions to external shocks. Solutions are considered on the basis of enhancing the self-responsibility of credit institutions, ensuring compliance with market principles, international practices, ensuring the consistency of the legal system and the feasibility of regulations.

Finance - Banking - Consideration of not yet passed the Law on Credit Institutions (amended) — Mr. Vu Hong Thanh - Chairman of the National Assembly's Economic Committee (Photo: Quochoi.vn).

Regarding some main contents, 1 chapter on policy banks with 11 articles is accepted, revised and supplemented. At the same time, to create a clear legal basis and favorable conditions for the operation and development of policy banks, it is recommended that the Government study and develop a separate law on policy banks.

Based on the Government's proposal, the draft Law has revised the regulations related to limiting manipulation and control of credit institutions, including adjusting the regulations on related persons to suit the type of people's credit funds; adjusting the share ownership ratio for individual shareholders to 5% (instead of 3% as in the draft law submitted to the National Assembly at the 5th Session).

At the same time, it stipulates a roadmap to gradually reduce the credit limit to 10% of equity for a customer and 15% of equity for customers and related persons within 5 years to minimize the impact.

Supplement and complete many contents related to finance, accounting, and reporting of credit institutions such as: Concept of charter capital; Distribution of profits and funds...

Regarding risk provisions, the National Assembly deputies' opinions were accepted and revised to "The classification of assets, the level of risk provisions, the method of risk provisions and the use of provisions to handle risks in operations are prescribed by the Government", instead of the Governor of the State Bank as prescribed in the draft Law submitted to the National Assembly at the 5th Session.

According to Chairman Vu Hong Thanh, the National Assembly Standing Committee finds that this is a very difficult, complicated, sensitive draft law related to national financial security, the security and safety of the credit institution system, and has a profound impact on socio-economic activities.

Given the very important role of the Law on Credit Institutions (amended) in the national financial system, the quality of the draft law is a top priority.

Therefore, it requires careful and careful research based on science and practice to avoid cases where the law, after being promulgated, has shortcomings that will cause many impacts, especially on the security and safety of the banking system and socio-economic activities.

Therefore, it is extremely necessary for the National Assembly to consider and not pass the draft law at the 6th Session but to consider and pass it at the next session so that agencies have enough time to carefully and cautiously study and review the draft law.

After the 6th session, based on the opinions of the National Assembly Deputies, the National Assembly Standing Committee will continue to direct the agency in charge of the appraisal, the agency in charge of the drafting and relevant agencies to review and complete the draft Law .

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