One of the highlights of the bill is that future ailing banks will be allowed to go bankrupt. Accordingly, the State Bank of Vietnam (SBV) will submit to the government a decision about banks under special control that face bankruptcy. The SBV will supervise and inspect the implementation of the approved bankruptcy plan. Banks will be put under special control under the following scenarios: losing liquidity capacity in accordance with SBV’s regulations; accumulated losses being higher than 50% of charter capital; being ranked as weak for 2 consecutive years based on Vietnamese ratings; inability to maintain capital adequacy ratio for 12 consecutive months. The bill will take effect from Jan 15thnext year.
