VietinBank Chairman of the Board of Directors Tran Minh Binh proposed that the competent authority approve the policy allowing VietinBank to retain all annual profits of the period 2024-2028 to increase capital.
At the Conference to deploy banking tasks in 2024, VietinBank Chairman of the Board of Directors Tran Minh Binh said that, with the actual situation in 2024, it is forecast that there will still be many challenges and unpredictable developments, although the State Bank (SBV) SBV) and the entire banking system are determined to promote healthy credit and effective growth for the economy, with a renewed credit mechanism and credit growth assigned to credit institutions immediately. from the beginning of the year.
In parallel with the solutions of the banking industry, in order for credit growth and capital supply for the economy to achieve the set goals, VietinBank Chairman proposed that the Government direct ministries and branches and coordinate with the Ministry of Justice to amending and supplementing shortened procedures for approving real estate investment projects; People’s Committees of provinces and cities direct the implementation and resolution of problems in approving and submitting for approval general planning, detailed planning, and land use plans to ensure land funds for communal housing development needs. associations and housing for workers.
VietinBank Chairman of the Board of Directors Tran Minh Binh. (Photo: TBNH)
In addition, VietinBank Chairman of the Board of Directors Tran Minh Binh expressed his wish that competent authorities create conditions for VietinBank as well as state-owned commercial banks to increase capital and improve financial capacity.
“Currently, VietinBank has received opinions from the State Bank of Vietnam and the Ministry of Finance allowing it to retain all 2022 profits to increase capital through stock dividends. On that basis, VietinBank proposes to the competent authorities the right to allow the bank to retain all 2023 profits to increase capital; Approve the policy allowing VietinBank to retain all annual profits of the period 2024-2028 (5 years) to increase capital and improve financial capacity, expanding credit growth space,” VietinBank Chairman of the Board of Directors Tran Minh Binh stated.
Regarding the handling of bad debt, Mr. Tran Minh Binh said this is an important step in the process of restructuring the banking system, especially in the current context when bad debt is at risk of increasing. However, in order for bad debts to be handled effectively, he proposed to legislate Resolution 42 to create a legal corridor and mechanism for debt handling activities.
Regarding the issue of capital increase, recently Deputy Governor of the State Bank Pham Quang Dung “reminded” 3 banks about this issue including VietinBank, Vietcombank and BIDV.
Deputy Governor Pham Quang Dung emphasized that this is an urgent and natural requirement of state-owned commercial banks to have resources to expand operations and better meet the needs of socio-economic development. festival. Deputy governors of the State Bank of Vietcombank, VietinBank and BIDV coordinated to propose to the State Bank, the Government and the Ministry of Finance in a different direction, not proposing to increase capital each time.
“Currently, we have a strategy to develop the banking industry until 2025, with an orientation to 2030. We should apply for a mechanism to increase capital as a component of this strategy so that we do not have to apply for it every year. “Every time like this is extremely time-consuming. We, the State Bank, the Ministry of Finance, the Government Office and the National Assembly all waste time,” Mr. Dung emphasized.
Last year, VietinBank also effectively implemented the policies of the Government and the State Bank, such as the interest rate support program according to Circular 03 of the State Bank with outstanding interest rate support loans of VND 12,000 billion. The bank has the highest outstanding interest rate support compared to other commercial banks; Actively implement measures to support business customers facing difficulties according to Circular 02/2023/TT-NHNN; Focus on promoting lending to priority areas according to the Government’s orientation with outstanding loans accounting for about 40% of total outstanding loans.