The Vietnamese Systemic Bank Restructuring Model in 2011-2015 and Implications

Abstract

Systemic Bank restructuring is a temporary process, playing an important role in the development of the financial and banking system. In period of 2011-2015, the Vietnamese Banking system has been in times of strongly restructuring followed by The Decision 254/2012/QĐ-CP. The bank restructuring in Vietnam has remarked several positive results such as no bank run, bank insolvency resolving and the establishment of market discipline in bank. However, such fundamental objectives of a systemic banking restructuring as forming a safe and sound banking system with diversed ownership structure and modern technology infrastructure has been unseen due to the insufficiency of restructuring fund, strong regulation and independent restructuring institutions. The paper pays attention to build a general model for the systemic bank restructuring, then, compare it with the one that Vietnam has employed during 2011-2015. Some recommendations have been proposed latter.