Vietnam passes law to tackle bank crisis, resolving bad debts


A woman rides a motorbike past the State Bank of Vietnam in Hanoi on February 25, 2025. Under the legislation, which takes effect from Oct. 15, the State Bank of Vietnam is authorised to provide special unsecured loans with zero lending rates to troubled banks - a power previously held by the Prime Minister. - AFP

HANOI: Vietnam’s parliament passed a revised law on credit institutions, bolstering the central bank’s authority to ensure the safety of the banking system while offering long-awaited legal clarity for commercial lenders to resolve non-performing loans.

Under the legislation, which was approved by the National Assembly Friday (June 27) and takes effect from Oct. 15, the State Bank of Vietnam is authorised to provide special unsecured loans with zero lending rates to troubled banks - a power previously held by the Prime Minister.

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Vietnam , law , bank crisis , bad debts

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