Thus, the direction of allocating state budget to increase capital for this group of banks has information from the National Assembly forum.
This morning (November 11), Chairman of the National Assembly's Economic Committee, Mr. Vu Hong Thanh reported before the National Assembly passed the 2020 socio-economic plan resolution, including the content on charter capital for commercial banks with state capital.
Mr. Thanh said that the process of commenting on the draft resolution has suggested adding a solution to increase charter capital for state-owned commercial banks to the draft resolution submitted to the National Assembly for approval.
However, the Standing Committee of the National Assembly said that the increase of charter capital for commercial banks with state capital is important, being verified and reported to the National Assembly and the National Assembly Standing Committee in accordance with procedure. Therefore, please do not present the above content in the draft resolution.
Concerning this content, at both National Assembly meetings this year, the State Bank proposed to allow the use of the state budget to increase charter capital for state-owned commercial banks.
In the report before the session, Governor Le Minh Hung said that improving financial capacity through increasing charter capital of state-owned commercial banks to ensure the leading role of these banks. Financial and monetary markets have encountered many difficulties in the past.
The total amount of capital needed to invest and supplement to the state-owned commercial banks is quite large to ensure to meet the minimum capital adequacy requirements under Basel II while State resources can be used to increase capital for these banks is also very limited.
In order to facilitate the effective implementation of Resolution 42 and the Scheme on restructuring the system of credit institutions, the State Bank proposed the Government to propose the National Assembly to amend Resolution No. 25/2016 / QH14, Resolution No. 26/2016 / QH14, Resolution No. 1023 / NQ-UBTVQH13 or issue a new Resolution in the direction of using the state budget to increase charter capital for state-owned commercial banks (not including 3 bank required purchase).
Although not yet implemented the solution as suggested by the Governor, the Resolution of the National Assembly still made a request related to the banking sector.
Specifically, the direction from the National Assembly required continued implementation of restructuring credit institutions, drastically handling weak banks; strengthen the coordination of relevant agencies in the process of handling bad debts; enhance the effectiveness and effectiveness of inspection and supervision activities of credit institutions; developing modern banking technology and electronic payment.
Along with that, managing monetary policy proactively, flexibly, prudently, coordinating synchronously and effectively with fiscal policy, striving to control inflation according to the goals set by the National Assembly in the Economic Development Plan. Socio-economic 5 years 2016-2020; improve credit quality, focus on priority areas of the economy; strive to increase the state foreign exchange reserves.
Thus, the issue of state budget allocations to increase capital for "Big 4" state-owned commercial banks (including Agribank, Vietcombank, VietinBank and BIDV) is still not feasible.
Accordingly, it is expected that in two cases, Agribank and VietinBank will face difficulties in increasing charter capital. Agribank currently has 100% state capital, is promoting equitisation plan. VietinBank has now used up the capital raising limits as the state ownership rate has been reduced, the foreign investor ownership ratio has been filled.
As for Vietcombank and BIDV, these two members have successfully increased their charter capital recently; in which BIDV has just finished offering 15% of shares to foreign investors and collected a large surplus and increased charter capital.